YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
huge commitment. Before 2008 there wasn’t really a lot of fear that buying a house would ever put you in a bad situation. However, now anytime there’s bad news about the economy or interest rates rising buyers tend to fear, what if I commit to this and put so much money, time and resources into this house and end up underwater? This is a scary thing for a lot of buyers that can kind of keep them on the sidelines and even not shop for houses. But assuming they’re already here and already looking at the houses, then they’re at least curious. If they’re working with a real estate agent they probably have a pre-qualified letter and they’re ready to take action. By showing the appreciation of the area with an FHFA graph display, we can alleviate the fear of a bad investment. Show that home values have increased and the desirability of this specific neighborhood (with the Odds of Selling ) and this will reassure them it’s okay to commit because they’re not going to be in bad shape.
LOREM IPSUM (IF NEEDED) STEP 5: RE-POSITION THE HOME
STEP 5.1: Know When to Re-Position & How
While the Competitive Positioning Process is technically finished, because we’ve arrived at the positioned price, it’s not over for our instruction. The reason is actually pretty simple. You don’t stop working a listing until it’s closed and on the books. I’m pointing this out because if it doesn’t sell or doesn’t list right away, then you will need to re-position. Example 1: Re-position for a listing that doesn’t hit the market right away. Everyday agents are living in the real estate realm so things seem like basic knowledge and common sense to them. To customers the same things are often not clear, but confusing. At breakfast a few months ago Tim overhead a conversation that two agents were having at the table next to him. They were talking about a CMA gone wrong which piqued his interest. One agent was telling the other how upset they were at losing a valued client they had worked with for years. The reason why they left? They didn’t agree with the price they gave them for their home and wanted to sell for more. Well, those clients listed for much more with someone else. Tim, not wanting to be rude but quite curious, politely leaned over, introduced himself and asked how much higher was the house priced and what made them think it should have been lower? The response made my dad laugh out loud. Turns out the clients had asked the agent for a CMA 2 years ago! So they were thinking the agent’s price for today’s market seemed low. Well yeah, no kidding! This is something that’s a comical moment but it’s also the reason we recommend always putting an expiration date on your CMA. We usually put an expiration of 30 days, because every month will yield new competition data. Now this expiration doesn’t mean you need to redo the whole process. If it’s as long as two years, then yeah you would do the whole process, but it’s been 30 or 45 days you’ll just do the re-positioning. You’ll look at the competition and market momentum and adjust accordingly to ensure you’re in that market value price. Example 2: Re-position for a listing that doesn’t hit the market right away. As we said earlier, not every home that goes on the market sells, which means there’s a chance that includes your listing. Your goal is to get market value and when that doesn’t happen on time it most likely won’t happen at all. The real question to address is, how long is too long and when should we exercise and encourage patience? The Time to Close graph answers that question for us. Assuming a 30 Day close on
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