YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
STEP 2.1: Find Comparable Recently Sold Properties & Market Value Trendline STEP 2.2: Establish Pricing & Competitive Ranges LOREM IPSUM STEP 2: ESTABLISH VALUE BASED ON HISTORICAL TRENDS Pricing Range Finding the pricing range refers to the potential dollar range that your subject property would be worth based on past sales. At this point, you will find a price that is fairly accurate but not yet Competitively Positioned to tap into market factors. The idea of finding a range, then letting the market forces tell you where to price the listing is a new concept to many, but it’s powerful. Understanding Competitive Range Using Buyer’s Eyes Buyers eyes refers to how buyers see the market and how their search is done when home shopping. When you think about a buyer, they usually aren’t just searching for a certain neighborhood or one dollar amount. It’s almost always a range, and a broader area. This broader range is what we call the Buyer Zone. Where else would a buyer look if your home showed up on their search? There are exceptions to this of course but that is in the minority of cases. So at this point, we put ourselves into the shoes and mind of a buyer and think, what range of search would a buyer use (using our price ran- ge and neighborhood as a guide) that could include our property? We use that information to do another search based on a wider area and price range to find competitive data.
STEP 3: COMPETITIVELY POSITION THE HOME & PRICE FOR MARKET VALUE
STEP 3.1: Understand the Market Factors STEP 3.2: Competitively Position the Price LOREM IPSUM
Desirability: The buyer’s preference to purchase in a certain area or neighborhood over other similar areas or neighborhoods. Timing: The months of the year when an area or neighborhood is most actively closing homes. Momentum: The current market’s favoring of value toward buyers or sellers. Opportunity: The availability of a buyer and a seller being able to sell a home in the next 90 days. (This market factor is the takeaway you’re looking for with Absorption Rate Pricing, but we have a better way to show this information.) Visibility: The ability for buyers to find a listing in their search and easily see it.
These are the main factors we account for when we go to Competitively Position the home for needed value. Now I should make a quick point here. I’m not saying lowest dollar price when I say value. I’m saying
19
Made with FlippingBook - PDF hosting