YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
Why is it called The Pond?
You can think of real estate as a pond. In general, at the top of the pond is the water that’s flowing. As you descend lower you tend to find water that does not move as much and doesn’t get seen as much, i.e. there’s less light and it gets darker. When it comes to the real estate market, homes come up for sale and flow into the market pond. Then buyers come to fish in the pond. As they see the homes that they like they put offers in. If the offer is accepted and if it goes under contract, eventually it closes and flows back out of the market. So that top layer is where tons of buyers tend to see everything that comes in. Now if a home doesn’t sell, after a while it tends to sink. If it sits for too long past their time to sell, then they tend to fall into this dark abyss area of the pond where it’s very rare for them to end up selling. You don’t want to reach the muck at the bottom of the pond.
Now we have all the major market factors accounted for, and are ready to actually look at competitively positioning the home. Let’s quickly recall all the takeaways we’ve found about the example home this far and put them in a simple list so we can use them as we position the home for sale.
The neighborhood is highly desired. Desirability
Homes sell fast in the neighborhood, and we are in the buying pattern. Timing is in our favor. Timing
$750,000 Base Price
$710,000 - $790,000 Pricing Range
$700,000 - $800,000 Competitive Range
The momentum current favors sellers strongly. Momentum
High opportunity, means price for advantage or tie if market factors are good. Opportunity
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