RE62RC10: Comparative Market Analysis (CMA)

List Your Way to Success!

Constantly Evolving Continuing Educationwith Kate Lanagan MacGregor

==

Nice Meeting YOU!

Volunteer2017 President Elect RASEMMAR Focus Area Vice President~ Communications/TechMember- Professional StandardsDean- Leadership Academy 2016-2017

EducatorInstructor Training InstituteCertified Distance Educator InstituteOwner/Instructor- Agent Rising Presenter/Trainer - MAR, NEAR, RASEM,RAPV,ITICertificate - 4Mat Online Instructional Design-Learning Styles

Today’s Objective

As a result of today’s class we will be able to:❑ Create your value proposition for success❑ Identify the elements of a CMA❑ How to master a listing presentation

❑ Incorporate new technology tools into your listing presentations.

Zero Moment of TruthTHE SEVEN FIRST IMPRESSIONS YOU MAKE

1. Your “about me”

❑ bio/intro/resume

❑ Take some time to think about what your message or ‘brand ‘ is.

❑

Have a photo and/or video that support your authentic brand and have someone proof it.

❑ These should be in your CMA as a resource

Whatsmywebutation.com2. Your social self- strategic and comprehensive

Your emails should have clean, branded signature that is on all of them.

❑ Are facebook, twitter, linked in, etc a good impression?People check this as references.

❑ Always Google yourself.

❑ Why do they care?

Your mobile office

3. Your vehicle.

❑ Is it clean and organized?

❑ Is it part of your brand?

Do your Outsides Match Your Insides?

4. Your appearance.

❑ Plan on running into a client wherever you go.

❑ “If a person is poorly dressed,you notice the clothing: but if they are impeccably dressed, you notice the person.”

Are the clothes you are wearing projecting the message you want to send?

❑ What does your briefcase/bag say?

Attitude, Body Language, Congruence

5. Carriage of self. Your “ABC’s”

Attitude, body language and congruence.

❑ In face to face communication, people give the most credibility to what they see, next your voice tone, and least to the words they are hearing.

❑ If your words and body language aren’t saying the same thing, people are apt to not believe you.

Shake, Bow, or Hug?

❑ 6. Your handshake/ physical greeting

❑ When you shake hands, people make immediate judgement about your character and level of confidence.

❑ Firm, quick and respectful.

❑ Hard, but not too hard. Definitely not too soft.

❑ Consider the 2 handed handshake, where you are touching their forearm with your other hand.

.

Gratitude Marketing

❑ 7. Your follow up.

Thank you note/small gift.

❑ An unexpected card or gift is one of the most powerful and unforgettable actions you can take

Beware of Beautiful CMA Syndrome

❑ Long listing presentations are so last century

❑ The longer you stay, the lower the commission and the higher the price.

❑ Do we call CMA?

Present or Listen?

❑ Remember, if you are presenting, it’s about you. If you are listening, it’s about THEM

❑ Your information should answer “Why do they care?”

❑ Attention Span- bullets and images❑ NOT Paragraphs

What is a ‘CMA’?

● A CMA is an unbiased estimate or opinion of the market value of real property by a real estate licensee who is not a licensed or certified appraiser.

BUT- is it unbiased?

What exactly is a CMA?

CMA referenced as (interchangeable terms all in common usage):

❑ Comparative Market Analysis

❑ Competitive Market Analysis

❑ Comparable Market Analysis

Same, But Different!

❑ Broker's Price Opinion (BPO)-usually ordered by lenders

❑ Drive by❑ Interior and neighborhood❑ determine list price❑ -Market Analysis

Opinion of Value generally less detailed

CMA vs Appraisal

❑ The valuation techniques used are similar to the three approaches to value employed by a licensed or certified appraiser.

❑ Appraiser has no vested interest in transaction

❑ Appraisals generally hired by lender ❑ Appraisers use Uniform Standards of

Professional Appraisal Practices (USAP)❑ CMA generally used to determine list price

Sales Comparison Approach

❑ Identify properties with the same 'highest and proper use' that have sold recently (usually within the last six months

❑ Excluded would be conveyances such as 'short sales', bankruptcy or foreclosures or sales between relatives, etc.

❑ Must be arms length transaction

Aka. Market Approach

❑ b. Adjustments between subject property and comparables for significant differences such as location, physical characteristics, etc.

❑ c. Similarities generally should be in the bathrooms, bedrooms, number of rooms, building age, style of house, condition of property, and lot size.

❑ d. All comparable information should be reconciled and a value should be 'estimated'

We Call Them “Comps”

❑ Beware of our ‘lingo’

❑ Caution about ‘what makes my house better’

❑ Usually 6 month look back

Cost Approach or Replacement Cost Approach

❑ a. Cost approach is based on the property's replacement cost.

❑ b. Add together the building and land value (each computed separately).

❑ 1. Estimate the replacement cost of the building new.

❑ 2. Deduct all accrued depreciation from the replacement cost

❑ 3. Add the estimate land value to the depreciated replacement cost.

3. Income Approach

❑ a. Income approach is determined by the amount of net operating income the property will produce over its remaining economic life.

❑ b. Steps to estimate by Income Approach❑ C. Normally commercial/investment

How to Apply Income Approach

1. Estimate the potential annual gross income.

2. Adjusted Gross Income - Deduct an allowance for vacancy and collection loss.

3. Net Operating Income (NOI) Deduct all annual operating expenses of the property from Adjusted Gross Income.

The Listing Presentation

Mindset shift: you are a teamMarketing Planner and/or Listing Strategy❑ Secure the Listing Appointment❑ Prepare for the Listing Appointment❑ Deliver the Digital Listing Presentation,❑ Slide by Slide❑ Handling Seller Objections❑ Customize Your Own Digital Listing

Presentation

You get the call or lead...

❑ How did they find you?

❑ Show appreciation

❑ Listen to their ‘why’

❑ Give them homework

❑ check town permits

❑ find deeds, etc if they have

❑ send them RPR or report to review

Homework❑ While on the phone,

❑ ask the seller to email you

❑ The home’s top selling points

❑ location

❑ open floor plan

❑ etc

❑ Objections potential buyers may have

❑ What type of buyer would be most interested in their home (retiree, families)

Your Homework

❑ Take exterior photo~ask them for permission

❑ If time, send Thank You note with Pic

❑ Visit town hall~(best) online is good too

❑ plot plan

❑ Deed

❑ field card

You are showing them you care!

Online Template for Client Consultation❑ BE PREPARED! Have this handy!

❑ Using your iPad/tablet at first communication -

❑ Create a notebook with the address title. Select the text below and copy it. Paste

❑ NAME:

❑ ADDRESS:

❑ CONTACT INFO

❑ email:

❑ mobile:

❑ office:

❑ home:

❑ BEST TIME TO REACH THEM:

❑ SOURCE:

web

sign callreferralfarmadvertisingdirect mail

Open house

2 Ears 1 Mouth?

Listing presentation

❑ Listen to what your seller has to say.❑ Being prepared to roll up your sleeves and

helping out can win a seller’s heart.❑ Do not presume to know what they want

The Top Listing Presentation Mistakes(and How to Avoid Them) by Bernice Ross, Inman

“Mr. and Mrs. Seller, thank you for the opportunity to discuss the marketing of your property.

If it’s okay with you, let’s make a list now of all the things you have enjoyed about living in this house and this neighborhood.

Making a list will help me build a more effective marketing campaign and better highlight your home’s best features.”

Bernice Ross Script (Inman Article)

“So, what should I put on my list?

As the seller points out the features and shares what they value most, take notes. When they pause, ask:

Is there anything else I can add to my list now about what you have enjoyed about living here — something about the neighborhood, perhaps?

Can I add anything about improvements you have made or other things about the lifestyle here?”

What is their Heartstring?

Heartstring= main buying motive

❑ What we think-

❑ They want most money for their home

❑ What we may miss

❑ Pride

❑ Simplicity

❑ Timing

Before the Tour: Sit Down ~ Qualify

Take out your tablet and record on spreadsheet/checklist❑ Evernote or drive

❑ Review their homework

❑ Review your homework❑ -RPR❑ -deed❑ -plot plan❑ -field card❑ Facts in house

Listing Interview TemplateOn Evernote or Drive

❑ Client Name:

❑ Take Picture add here

❑ Property Address:

❑ Take Picture add here

❑ Recommended Price:

❑ Home Features:

❑ Recommended Repairs/Updates:

❑ List/Marketing Date:

❑ Showing Instructions: Vacant

❑ Call First/Go

❑ Appointment with Realtor

❑ Appointment with Owner

❑ Pets:YesNo

❑ Lifestyle Features

Template can be Evernote or Sheet

❑ INTEREST:

❑ EXPERIENCE:

❑ PRICE RANGE/PAYOFF AMOUNT:

❑ TIME FRAME:

❑ CONCERNS:

❑ OBJECTIVES:

❑ NEXT STEPS

Decision Maker: who will be involved in the decision making process?Concerns: what are their concerns?Objectives: what are their objectives for buying|selling?Review: go back over the information they just gave you -

HINT: use their exact language - do NOT improvise.

Next Steps: explain next steps and set an appointment.

What will this Do

❑ Show you listen

❑ Show your tech edge

❑ Organize the listing

❑ Help you find that Heartstring!

3 P’s Redefined

The real estate industry has changed from almost every angle.

The old 3 Ps of selling a home ... 1. Putting a sign in the yard 2. Posting the property on the MLS, and 3. Praying that it sells quickly

3 P’s have transformed to a modern marketing approach including ... ❑ PREPARATION ❑ PRICE ❑ PROMOTION

Preparation

❑ Your lead has surfaced and has the potential to quickly transition to a profitable listing.

❑ Securing the appointment to present your market expertise gets you to the table, but will it earn you the listing?

❑ The key to landing that listing is to prepare … more thoroughly, more accurately, and more creatively than your competition.

Preparation

❑ Don’t let your prospect get away with just an appointment.

❑ Use this opportunity to capitalize on your uniqueness, if only, leaving the prospect with one key takeaway—that you listen and act.

❑ Give them something to see and do before you meet with them!

Price

❑ What have they done for improvements?

❑ What would add (or take away) value?

❑ The more details you capture about the property’s condition and enhancements, the more equipped you will be to determine the property’s value using RPR’s Refined Value Tool

❑ You synthesize the data

❑ They determine price.

Promotion

❑ How are you promoting your strategic distinction to them?

❑ RPR Seller’s Report—Beautiful, comprehensive report.

❑ Digital?

❑ Video?

❑ Book or booklet?

My 4th P - Personal

Your Company

❑ Company

❑ Market share

❑ Ability to execute

❑ “Years “ of experience

❑ Why you chose them

You

❑ Strategic Distinction

❑ Brand

❑ Resume?

❑ Community Expert

❑ Community Involvement

❑ Participation in ®

Objections or questions?

❑ Prehandle❑ Prepare❑ Pray

❑ Are they simply asking for more information?

❑ Price- commission❑ Accompany?❑ Negotiate❑ Dual

❑ There’s no magic bullet when it comes to listing presentations.

❑ LEAVE SPACE FOR LISTENING

❑ At the end of the day, it's about THEM❑ We are in service industry

Biggest Message

RPRNAR Benefit

Mobile intuitive

narRPR.com

❑ Begin your search of the subject property by logging into narrpr.com

❑ • Select All Properties, enter the property address in the main search bar and tap the magnifying glass to execute your search.

eBooks by RPR

Comparative Analysis

❑ In RPR

❑ Run Your Comp Analysis, for details on how to start Reports

❑ Once on the site, RPR’s step-by-step wizard will walk you through their five simple steps to generate a Comparative Analysis.

Sales Comparison Analysis

❑ Sales Comparison Analysis Another helpful valuation tool, the Sales Comparison Analysis, is a more detailed and sophisticated property evaluation used for harder-to-price homes.

❑ Although the Sales Comparison Analysis is primarily used by appraisers, every REALTOR ® has access to it.

Sellers Report

Valuation Workbook

Here’s a Map!

What's The Difference?

❑ Comparative Analysis- comparables predetermined by algorithms

❑ Sales Comparison Analysis-❑ click the radio button found on the Comp

Analysis page, confirm the home’s facts, click Find Comps in Step 2, and you will get a pop-up message asking if you want to copy the comps you chose for the Comparative Analysis.

❑ By selecting yes, you can use your pre-selected comps without having to search again.

Build It Together With Them!

Draw Your Area= Polygon

Numerous Reports

❑ Results are displayed first on the Summary Page.

❑ current and historical information, Realtors Valuation Model ® (RVM®), home’s basic facts,

❑ photos, maps, mortgage records,

❑ tax info,

❑ Refined Value Tool, Comp Analysis, and more.

Where are things?

RVM and Pricing

❑ The Realtors Valuation Model ®

❑ Price your listing with razor-like precision is your most important move in the real estate game.

❑ The RVM has a Confidence Score—a value between zero and five that indicates the level to which each of the multiple models agrees with other estimated values for a given property.

❑ High confidence scores indicate that other models

CloudCMA

One-Click CMAsCloud CMA is the easy way to create amazing reports that help you write more offers and win more listings.Try Cloud CMA for Free“A comparative market analysis is one of the most important tools you have as a real estate professional. Cloud CMA is the real estate CMA software that will make you look awesome in front of your clients and help you get the listings you want.See plans and pricing. Sign up in 60 seconds. Try Cloud CMA for Free“ from cloudcma.com

“First impressions are everything. When your prospective clients give you the opportunity to wow them with how hard you will work to sell their home – don’t let the opportunity pass you by!

It’s your chance to make it happen and win the listing.

Having the very best in real estate CMA software will ensure that you have everything your client needs all in one simple, effective, and beautiful presentation.” cloudcma.com

Making a Great First Impression

https://youtu.be/BPQ-ZJsnkbU

Voiceter Pro

❑

Voiceter Pro, LLC Real Estate Skill/App for Amazon’s Alexa powered devices and Google Home’s Virtual Assistant.

❑ With millions of artificial intelligence devices in smart homes across the country, the future of real estate property search will be voice driven the process much easier.

Voice Enabled Real Estate Search

“With Voice-Enabled Real Estate Search, we will be able to meet our clients growing needs when it comes to real estate search.

Not only do we currently provide online web services, but will now have the ability to deliver proven results to those who seek the latest in technology to help them with their home search. “ voiceterpro.com~ Miguel Berger CEO

“Open Real Estate”

❑ Voiceter Pro’s Voice-Enabled Real Estate Search is free for consumers and easy to use on their Amazon Echo, Echo Dot or Tap and Google Home Devices.

❑ Home buyers simply ask Alexa to “Open Real Estate” on their device.

Sellers and Buyers

❑ Our Voice-Enabled Real Estate Search tools will verbally report the top three matches and then send an email with complete listing details for all results.

❑ Home sellers can also utilize Real Estate to help them with their housing needs. voiceterpro.com

Real Estate Search

❑ Voiceter Pro, LLC., based on Albany, NY and Oakland, CA, is the conversational search company that will bring companies and consumers together through meaningful conversations with Amazon’s Alexa and Google Home.

❑ Starting with its flagship product, the Voice-Enabled Real Estate Search for Amazon and Google powered devices, Voiceter Pro will revolutionize AI-assisted searches.

NAR Emerging Trends In Technology

Photo and Information from REALTOR Magazine, article by Meg White“Is Alexa our next Real Estate Agent”

IDX and Alexa… it’s a Go

At the REALTORS® Legislative Meetings &

Trade Expo in Washington, D.C. this week, the

advisory board proposed that the committee look

at how rules might be changed to disseminate

IDX information to consumers through these

smart speakers, and the Board of Directors

passed it.

Sam DuBord, Coldwell Banker

“Do you want broker members to build the best

new technology, or do you want someone who

isn’t a broker building new technology?...Real

estate pros should lead the way in applying

new technology to the industry...or We fall

behind” Sam DeBord, NAR Legislative Meetings

Concerns

How are listings prioritized?

“How are those listings determined as far as

what’s being read back to the consumer?”

“Are we further eroding the use of a real estate

agent” Cathy Libby, Maine Association of Realtors CEO

Don't promise what you can't deliver and find at least one "wow" factor opportunity to stand out.

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