YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
THE NEW STANDARAD
The New CMA is a Competitive Market Analysis.
It is accurate.
It is reactive.
It is inclusive of real-world market factors.
You may be asking yourself at this point, “Isn’t the current comparative market analysis also?” The short answer is… NO.
The old CMA, the one you’ve known as a comparative market analysis is incomplete. It’s a puzzle that is missing key pieces, which means it doesn’t create the whole picture. Now I say key pieces, but really, it’s missing more like half the box! The reason for this shortcoming comes from the lack of the pricing methods ability to factor in both seller and buyer motivations. The New CMA is much more complete because it expands its understanding that sellers are more location sensitive, while buyers are more price sensitive. (In most cases). To accommodate for this difference the New CMA introduces the understanding of value vs market value, and a second search with a buyer’s perspective. The New CMA can account for current competition in a buyer’s price range on a wider, relevant area, yet still use recent sold properties to inform us on a home’s value. This is done with a two-search method, and the Competitive Positioning Process. This lets you first find the historical value, then position based on today’s and tomorrow’s market. Why is this such a breakthrough? It gets rid of the guess work and starts putting your finger on the pulse of home sales. When you put this new thought process and action together you get the ability to craft a really accurate New CMA . But, why now? Why do we need to adopt this new and more complete pricing method? There are three main reasons.
Reason # 1: Today’s customers are different, because they have more information than ever.
The old CMA was created in a bygone era where there was no data, not just for real estate agents but for everyday people. That is not today. Today the information is there for you and your customers at the speed of a Google Search.
Customers today have access to almost all the information that you as an agent can provide. They can
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