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presenting a Market Analyisis is not difficult.....
making the phone ring by the potential seller to request the CMA is the most difficult and the most important part...
Ryan Huggins - Thousan...
Thousand Oaks, CA
Rockville Centre, NY
Adjustments if you do not have identical property sold recently( and you rarely have).
Minnette Olsen - that sellers still want the higher list price....
Doing the comps. You need to know the territory.
finding comps for unique properties
I don't find them hard at all, unless they are on custom homes. For tract homes there are almost always model matches and similar sized homes out there to create a value range. Depending on how the subject house is condition-wise, you then place it in the range.
Back in the day a CMA took days, now with the Internet it's so much quicker. I'm with Barbara Todaro just making the phone ring.
making the non scientific adjustments
Making adjustments ... and factoring in where the market is trending.
Deciding to Do the CMA...once the decision is made, it all kicks in
Actually I'm teaching a seminar tonight on this very subject. I think a big temptation is to use online programs to determine value. I had an instance where I tried using RPR on a 500K+ property. The value that program came up with was about 60K lower than the final selling price. I still use a program to generate boilerplate pages but I do my own numbers. I agree with previous comments that it's finding the RIGHT comps. You have to know you market. I'm listing a townhouse in a PUD where there are many different styles and which street you're on can also make a difference. I tell new agents to pick an active listing. Do a CMA on it and then when it sells see how close your CMA was to actual closed price. One other thing to note is the difference between an appraised value and how marketable a home is based on condition, decorating, curb appeal etc.
Adjustments to the comps.
In a slow market finding enough comps.
Identifying the comps.
Having a very unique subject where comps are not available.
When you can't find comps for an unusual house.
## Getting the Seller to accept it ##
Finding comps for unique properties.
A mix of finding the right comps and making the correct adjustments for those who differ
The hardest part for me when there are no recent sales. Then, we have to search outside the scope.
Finding the right comps and accurate information.
Minnette Olsen Taking your time finding viable comps and preparing the final report. Additionally, making the proper adjustment to make the comps look like the subject property.
Finding the most suitable properties to use as comparable sales!
Figuring out the actual value difference between the subject and the comparables.
Sometimes it's finding the best comparables for the subject property in the nearby area
The lack of local knowledge and lack of recent data. I get asked by lenders often on some isolated pockets where they want recent comps from identical units and same floor plans with no transactions last few years but will not accept recent sold data in the same area.
The lack of actual comparable properties due to low/no sales which is a result of the lack of inventory. You will need to expand your search boundaries and criteria.