Rethinking the Comparative Market Analysis
The CMA is more than a means to determine a home’s value, it is key to building a business based on referrals.
Many real estate professionals fail to understand how important the Comparative Market Analysis (CMA) is for their business. A well-researched, well-rehearsed and well-presented CMA is the most important tool in a listing agent’s arsenal.
CMAs are much more than a means to determine the value of a home in today’s market; they are the key to building a business based on listing referrals.
In an industry that is driven by life changes such as job transfers, births, deaths, illnesses, divorces and the reversal of fortune, face-to-face CMAs enable you to stay in touch with your contacts so that you’ll be the first to know when these life-changing events are on the horizon.
Everyone you know who owns real estate should be receiving a CMA annually as part of their overall financial plan. It informs the owner of the home’s available equity and shows them whether their current home’s insurance is adequate.
Most important of all, a CMA provides the perfect opportunity to remind them of the importance of their referrals and conclude by asking, “Who do you know, who might be thinking about selling their home?” It opens the door for you to follow-up regularly on those listing referrals.
Set a goal of presenting at least three CMAs per week
In addition to scheduling CMAs with exiting contacts, here are some ways to add new prospects and increase the opportunity to present CMAs.
- Conduct an open house. Sure, it’s great if you sell the home but it also enables you to obtain CMA appointments with other homeowners and neighbors. The entire purpose of an open house is to meet the neighbors and schedule a CMA appointment.
- Become an expert in a specific area or subdivision and learn every floor plan. You can then reach out to residents and offer them an opportunity to learn more about their home’s value.
Since virtually every listing is preceded by a discussion of the seller’s net proceeds, it is obvious that the more CMAs you present, the more listings you will get. You’ll be providing a valuable service to real estate owners while building your listing referral business. You will also be the first to know when life events are occurring.
George W. Mantor, known as the “Real Estate Professor,” has spent over 40 years in the real estate industry as a recruiter, trainer, mentor and franchise owner. He opened the first Keller Williams Market Center in California. His experience also includes commercial syndication, new home sales and marketing.
He has shared his viewpoints with Fox Business Network, was the host of “Keepin’ It Real…Real talk about the real thing, real estate.” In addition, he has been a mentor, educator and author of numerous real estate columns and the book, “The Awful Truth About Careers in Real Estate and What to do About It.” He served as a director of the California Association of Realtors.