Priced to Sell: Delivering Effective CMAs

KW065

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Presenter

Gene Rivers

The Rivers Team

1. Tallahassee, FL

2. Agent, Owner, and KWU International Master Faculty Member

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Priced to Sell: Delivering Effective CMAs

Main Ideas1. Get Into the Details2. CMA Criteria and Tools3. Telling the Market Story4. The CMA Core—Data Displays, Close5. Pricing Strategy in Shifting Markets6. More Tools and Tips

A copy of this presentation is available for download at www.kellerwilliamsuniversity.com

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Get Into the Details

1. You are the Expert—Teach Them Things They Don’t Know

a. Beyond MLS

b. Local economist

c. How real estate markets work

d. Market history of neighborhood, street, or home

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CMA Criteria and Tools

2. Criteria

a. Variations by price range

b. Time period you select

c. Location

d. Size

e. Age

f. Floor plan

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CMA Criteria and Tools (continued)

3. Tools

a. ProManage/TOP PRODUCER CMA1. Link to local MLS data

2. Dozens of pre-built presentation pages (market story and pricing data)

3. Customize for your customer and you

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CMA Criteria and Tools (continued)

3. Tools (continued)

b. TMOReport.com1. Total market overview

2. Your market across price ranges

3. Emailed to you every other week

4. Developed by The Hardie Group

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CMA Criteria and Tools (continued)

4. Strategy: When to Share Your Final Price Recommendation

a. CMA includes final price

b. CMA does not include final price

c. Pros and cons of each

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Telling the Market Story—How Markets and Pricing Work

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Telling the Market Story (continued)

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Telling the Market Story (continued)

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Telling the Market Story (continued)

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Telling the Market Story (continued)

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Telling the Market Story (continued)

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The CMA Core—Data Displays

1. Market Story Sets Up Your Price Data Analysis

2. Elements

a. Property legal page(s)

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The CMA Core—Data Displays (continued)

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The CMA Core—Data Displays (continued)

b. MLS Data Page(s) -- Active, Pending, Recent Sales, Expired Listings

1. Criteria are your strategic call2. Time period used; size; age; floor plan;

garage; lot size; etc.

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The CMA Core—Data Displays (continued)

c. Charts of Direct Comparables (Active, Pending, Recent Sales, Expired Listings)

Address; bedrooms and baths; square footage; year built; high-average-low list and sale price; days on market; price per square foot

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The CMA Core—Data Displays (continued)

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The CMA Core—Data Displays (continued)

d. Chart Comparing Recent Sales—List to Sold Price

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The CMA Core—Data Displays (continued)

e. Property Detail Pages—Compare Features

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The CMA Core—Data Displays (continued)

f. One Page Summary of Comparables

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The CMA Core—Data Displays (continued)

g. Suggested List Price—Narrow Range

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The CMA Core—Close (continued)

h. Assumptive Close Visuals—Home Selling Process; Preparing to Sell Tips; Marketing Plan

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Pricing Strategy in Shifting Markets

1. Your Final Price Recommendation

a. When to share it—before or after signing (pros and cons)

b. Mindset: Bring the seller with you—to the answer

c. How to factor in market movement

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Pricing Strategy in Shifting Markets (continued)

1. Apparent Price vs. Strategic Price

a. The CMA sets up your final price recommendation

b. Strategic pricing includes your assessment of market movement

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Pricing Strategy in Shifting Markets (continued)

2. Pricing Behind, At, or Ahead of the Market

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Pricing Strategy in Shifting Markets (continued)

3. Pricing In or Out of the Market

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Pricing Strategy in Shifting Markets (continued)

4. Pricing in Fast Shifting Markets

a. Know the speed of the shift

b. Pricing becomes both an observation and a forecast

Don’t chase the market; let the market chase

you!- SHIFT

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Pricing Strategy in Shifting Markets (continued)

5. Price Indicators in Fast Shifting Marketsa. The importance of watching new active listings, and

price changesb. Average list price to sale pricec. Active to pending ratiod. Expired listings to sold ratioe. Affordability and absorption

rate trendsa. Showing activity (your other listings)b. Seasonal sales activity (varies)

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More Tools and Tips

1. Price Reduction Effect

a. Longwood University Study (Virginia 2004-07) Each 10% that list price exceeds sale price equals

an additional month of time on market

b. KW research in major metro markets Price reduced properties take almost 2.5 times

longer to sell than those

that are not reduced Recent Florida data correlating

price decreases and unit volume

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More Tools and Tips (continued)

2. Use a Net Sheet—Money Talks

3. Bracketing Strategy—Be in the Right MLS Price Bracket

4. Overpriced Listings—To Take, or Not To Take

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Ideas into Action

1. Be the expert—detail oriented and market wise

Be the local economist of choice

Study and practice CMA tools and skills Do unsolicited CMAs—practice, and prospect

2. Sharpen your strategic pricing skills forshifting markets

Thanks for Being Here!Don’t forget to complete your evaluation!

KW 065