The best, best and most meaningful / relevant way for real estate agents to professionally explain their reasoning, marketing and sales plans, is to create a Complete Competitive Marketing Plan, or CMA, and explain it thoroughly to your potential and existing customers! This should be more than a mere explanation and cursory examination of home prices, but should become a key part of the strategic and action plans, which will be used to generate the best prospects. As a licensed real estate seller, in New York State, for more than 15 years, I have prepared countless plans and consider them one of the most important documents and steps in making the process smarter, better, easier, less stressful and faster. With that in mind, this article will briefly attempt to consider, examine, review and discuss, 6 important components / factors, in preparing and leveraging a professionally designed Competitive Market Analyst.
1. Market trends / conditions: It is important to create a strategy, based on specific local and / or regional trends and conditions, because what works in one place may not work in another. What are some of the local nuances, etc., that could affect the marketing strategy, as well as the list price, etc.?
2. Recent Sales: It is not enough to simply examine and consider recent sales and / or list prices! Sales prices need to be scrutinized carefully, and the more current the closing date, the more significant! However, a variety of features should be carefully compared, including the specific block, local schools, community safety, home-specific features / inclusions, etc.
3. Expired listings: This process should include considering expired listings and probable reasons why they may not have sold. If there are a lot of these, it indicates one thing, but even if there are fewer, look for a common link and examine it! Perhaps the reason was the price, and if so, you should provide key information when preparing the document.
Four. Features / condition / improvements / lot and specific house / block size etc. Avoid comparing apples to oranges! Consider the included features and their value! What is the general condition of the property in question, compared to the competition? What updates have been made and what is the impact of these? Be sure to consider both the lot size and the shape / ease of use, as well as the advantages and / or disadvantages of the specific block, etc.
5. Specific location: Compare specific locations and the advantages and disadvantages of each. How could these affect prices, etc.?
6. Know your customer: Before any agent / client relationship, it is important that a real estate professional knows and understands their client, and is able to comprehensively and completely communicate essential marketing and sales strategies. The CMA alone, will make sense and will be effective and meaningful, if / when, an agent and a client, will work together and take advantage of quality teamwork.
Since, for most people, the value of your home represents your greatest financial asset, doesn’t it make sense to proceed wisely and in a well-considered manner? Before hiring an agent, carefully examine the professionalism and thoroughness of the Competitive Market Analysis!
