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CMAs - Comparative Market Analysis for Sellers

I don't always prepare a full-blown CMA package for listing presentations. Sometimes, the seller already has a handle on the market and knows what is for sale and which homes have sold. Besides, for sophisticated sellers, they really don't need to read all that miscellaneous data that often accompanies CMAs. For them, I print out a portrait CMA that shows the last six months of activity, including current inventory, days on market and median prices. Print and go. Because that's what lots of sellers want to know, coupled with how much extra value they believe that new roof should bring.

For sellers who want a clear a picture of the trends in their market, it is the pending sales that predict which way the market is moving. Sometimes the comparable sales are too old because the market is moving too quickly. And active listings are important only to the extent that they present competition. Not to mention, those prices can be all over the board and meaningless, regardless of how often a seller may point to the neighbor's McMansion and want to list at a higher price for their 1,000 square-foot bungalow.

Photo: © Big Stock Photo

Posted by Elizabeth Weintraub, Sacramento Real Estate Broker on 01/24/2008 06:47 PM

Comments (3)

cma, comparative market analysis

3 Comments on CMAs - Comparative Market Analysis for Sellers

Elizabeth - I'm sorry but I have to disagree with you on doing a "full-blown" CMA for "sophisticated sellers." First of all, no matter how many times a person sells real estate, my listing package may have something of value for them. Secondly, making an assumption that any seller is too sophisticated to recieve the most complete package - including a marketing plan - can be percieved as uncaring. I play it safe and give each potential seller every bit of information I think they might need.

01/24/2008 06:54 PM

by Kathi Frank (RE/MAX The Woodlands & Spring)

It's OK to disagree, Kathi. Everybody has a different style. Often I walk into seller's homes and all they want from me is to know where to sign on the bottom line. I'm simply pointing out that one size does not fit all. You need to do what your market demands. If your market demands full blown CMAs, that's what you should do. Plus, some agents, not necessarily you, feel more comfortable doing a listing presentation if they have all their paperwork at hand. I know my marketing plan so well I can recite it in my sleep. And my husband says sometimes I do. :)