What is a CMA and How Is it Prepared?

Few things are so important in the field of real estate as the comparative market analysis. In the past, it took a lot of experience to be able to produce a useful CMA. Today, CMA software for realtors using cloud stream allows any realtor willing to put in the time to produce CMA reports and CMA presentations that are useful, accurate, and even visually arresting.

What is a CMA?

The comparative market analysis is a presentational report that realtors put together to get an accurate analysis of the appropriate selling price of any particular home. CMA software for realtors helps to consolidate the prices of all recently sold homes, active listings, expired listings, and a few other factors in determining the actual market value of a property.

When Should a Realtor Run a CMA?

Although a CMA is never a bad idea, there are a few times when it’s particularly essential to run a CMA comparative market analysis. It can be run on behalf of a buyer looking to determine if the property they want to buy is actually a good deal or not, especially when the realtor is unfamiliar with the area. It’s also important to have an accurate CMA when pitching referred homeowners or expired leads.

How to Successfully Run a CMA

It goes without saying that the first step in having a useful CMA is having the right CMA software for realtors. That being said, real estate software is only one part of the puzzle. The human factor is just as important.

  1. Check out the listing in person. Never think you can skip going there in person to take a look around. Before you ever think of meeting with the client, you need to have seen not only the property but also the surrounding neighborhood so you are prepared to answer questions about it.
  2. If it has a listing, check it. What you’re looking for here is the condition of the home. Things may have changed since that listing went up, but you may still be able to get a sense of what’s going on and possibly identify marketing strategies that aren’t working and which you can fix.
  3. Check it, and the area, out on Zillow. Realtors know that the estimates coming out of Zillo are often wildly inaccurate. Unfortunately, many homeowners don’t know this and will already have been using this online tool. You need to be prepared to address this, so you need to know what Zillo is saying the home is worth as well as have a general idea of how accurate, or inaccurate, Zillo is in your area.
  4. Run it through your CMA software for realtors. The CMA software will let you produce something attractive to view on a tablet or print out and give to the homeowner. Different systems use different software, but in general you’re going to run homes that have sold, expired, or that are still listed within the past six months in your area. Sold listings tell you market prices; expired listings tell you prices the market is not willing to pay. The current listings give you an idea of what your homeowner is competing against.
  5. Other items to run with your CMA software. In addition to looking at listings, you want your CMA software for realtors to especially isolate homes of similar square footage, with the same number of bedrooms and baths, in the same neighborhood, and with similar lot sizes to the one you’re looking to sell. If the home that you will be selling has any special amenities, such as a finished basement or an amazing view, factor that in.
  6. Visit the property and inform the potential client. This is where your CMA software for realtors really comes in handy. Use it to produce an easy-to-read analysis of the market to leave with a homeowner to explain why you’re recommending the selling price that you are.

Having great CMA software for realtors is an important step to a successful CMA. It’s only one step, though, so make sure you follow it up with all due diligence.