real estate software

What is a Comparative Market Analysis?

As a real estate agent, you know that a comparative market analysis (or CMA) is a crucial part of your business. They help explain where the current market is, in terms of recent sales and other homes that are being sold in the area, in a way that a client can easily understand. When it comes to helping a seller decide whether or not it’s time to put their home on the market, a CMA report is your absolute best asset to win the listing.

Why?

Today’s technology-centered world comes with tons of advantages – we can do so much more now, and do it faster than ever. Plus, new technologies are introduced into the marketplace every single day that raise the bar and challenge the status quo. Likewise, potential clients have a lot of options at their fingertips to help them get a feel for the current market. In 2020, millennials will lead the way in the number of mortgages, accounting for 45% of the market.  Consumers now have access to numerous websites that allow them to search for real estate information for free. 

But it’s not often apparent to a client that the search results they get from their own browsing aren’t always accurate. Because of this, a client might insist on pricing a home way above market value and three months down the line, blames you for the home not selling. As a real estate agent, you are constantly balancing your expert market knowledge with keeping clients happy and this can be hard – especially when it comes to pricing during a listing presentation. How you handle those pricing objections at a listing presentation often times will determine if you even get the listing, too. That’s where a CMA real estate report comes into play.

CMA reports that agents create, help to identify the value of a consumer’s home by comparing it to similar properties that have sold in similar markets and/or are currently listed for sale. There are a lot of factors that help qualify whether or not a property is a good “comparable” to the subject property. Things like square footage, the number of days a property was listed before selling, floorplan, sale price, home features and more can determine what is a good ‘comp’ versus a bad ‘comp’.  They can also factor in location – some clients want to be in a certain school district, or closer to freeway access for commuting to and from work. Some prefer pools while others do not; the list of nuances goes on.

So how do you make a CMA?

You have many choices when it comes to creating a CMA real estate report. There’s no question that the most accurate and reliable real estate data comes from your Multiple Listing Service. The MLS offers realtor CMA report options straight from within their database system, but these reports are typically text-heavy and can be hard to understand. They are not compiled in a way that is easy for anyone outside the industry to read. For more consumer-friendly reporting options, you should choose to use third-party services to meet your needs. 

As a real estate agent, you know that delivering a winning listing presentation can be tough. First off, they can sometimes take hours to prepare for. And oftentimes, you’re not the only agent your potential client is meeting with. Which means that the materials you present them with have to make you look awesome, so you can beat the competition and win more business. We can help make it even easier for you.

The Cloud Agent Suite offers a tool called Cloud CMA that automatically pulls data straight from your MLS, as well as other top websites, and puts the data into a designer, consumer-friendly packet. You can customize the CMA real estate to suit the needs of each client, based on what they want to know, and really make it personal for each one. There are a lot of different options to try out when it comes to design, layout and content, allowing you to stand out above the rest. When you show up to a listing presentation with a Cloud CMA report, you look more professional and prepared than other agents who simply use the CMA from the MLS.  

We’ve helped agents like yourself to publish over 10 million reports, and we know we can help you, too! Even better? Cloud CMA is free to try for 30-days. How sweet is that? 

Get it at cloudagentsuite.com, and start looking even more awesome to your clients!

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