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Beyond The Marketing Plan -- Beating The Market

It's not just a CMA, It's a TMA.

CMA stands for Comparable Market Analysis. A CMA is a compilation of data that is gathered from the Multiple Listing Service (MLS). The MLS is used by Realtors® as well as licensed appraisers and it provides information regarding properties that have been or are currently being sold on the market. The data is used to assist in determining marketable value for a subject property by comparing the subject to similar properties for sale now and those that have sold in the recent past. Sold data is often referred to as a "comp".

Layman's terms: A CMA is a report that Realtors® run that gives us an idea of what homes have recently sold for that are similar to the one you are trying to sell. Realtors® compare square footage, # of bedrooms and baths, features, schools, etc. and use the information to make pricing recommendations to sellers. A quick search of the internet will reveal that most Realtors® offer to perform a Free CMA upon request.

TMA stands for Thorough Market Analysis. A TMA is not widely heard of by consumers and is most often performed by the consummate professional who believes that a CMA involves more than just the gathering of data. For data to exist, someone has to input it and that input is subject to human error and/or creative liberties. Performing a TMA requires that a physical inspection of the competition (Active listings) take place to verify the accuracy of the data and properly price the property.

LAYMAN'S TERMS: The MLS is full of errors because a listing in the MLS is only as good as the agent making the entry. Within minutes, it is easy to find at least 5 listings that include errors with regards to # of bedrooms, baths, dining rooms, living areas, garage spaces, schools, directions, status and so on. I have yet to find a listing in the MLS state that a home was a cramped space filled with trash, yet I have toured plenty of cramped spaces with trash all over the place. I've also encountered homes that show like a builder's model and the description didn't do the listing or the seller's exquisite taste any justice.

Don't leave the pricing of your home to chance that the CMA data is inaccurate. At Hall Team Homes, we tour the competition prior to offering a price recommendation so that apples will truly be compared to apples. A listing that is priced right ALWAYS results in a faster sale regardless of the condition of the property, its location or local market conditions.

CMA Versus TMA - A TMA reveals the difference.

Clients of Hall Team Homes know the difference.

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Hall Team Homes is proud to serve the real estate needs of the Greater Fort Worth Area including Arlington, Grapevine, Southlake, Colleyville, Mansfield, Hurst, Euless and Bedford.

Hall Team Homes

www.hallteamhomes.com

Contact Amanda Hall, Broker, Realtor and Owner of Hall Team Homes

817-239-9387 direct

Posted by Amanda Hall * FORT WORTH TEXAS Real Estate Broker * on 05/22/2008 07:54 AM

Comments (11)

hall team homes, amanda hall, real estate, fort worth, arlington, realtor, mls, homes

Originally posted at: Amanda's Blog: Beyond The Marketing Plan -- Beating The Market

This post has been included in Texas Information Tarrant County, TX Information Fort Worth, TX Information

11 Comments on Beyond The Marketing Plan -- Beating The Market

MAY

2008

Excellent point and great post. I am of the opinion agents need more training before placing a home on the market. It would make a big difference in the lives of both buyers and sellers.

Excellent information for your sellers, Amanda, and kudos to you for setting the bar high. You would definitely be my pick for DFW real estate.

AMANDA - If I were moving to the Fort Worth area, or if I knew anyone that was, the first call would be to you and the Hall Team. I feel the same way as you. One of the reasons that my market reports take so long to create is because I manually pull out errors instead of relying on MLS to be 100% accurate. I belive the term is "garbage in, garbage out." The MLS has no filter, and has no ability to remove misinformation (intentional or not). Great post, Amanda!

Melody, I couldn't agree with you more regarding the issue of agent training. I also have to add that a lot of the errors I find are by agents who have been around a while. The rookies appear to be too scared to make such careless errors in most cases and their Brokers are still keeping an eye on things. Go figure!

Lisa, You know where I will turn when I encounter buyers looking to move to the New Orleans area, too! I've read enough of your blogs and spent enough time getting to know you that I am confident of your high professional standards as well!

Adam, come on down to Texas! What internet consumers may not realize is that the MLS is feeding all of those websites the same misinformation that we are used to scrutinizing for accuracy. Hiring a professional that realizes not everyone understands truth in adverising helps the consumer a great deal! Imagine pricing a home to the low side and finding out later that the comps were skewed! What an expensive error and most sellers don't realize that it happens every day.

What can I say.... when you're good, you're good.

The amount of inaccuracies in the MLS data is staggering... I am constantly teling agents and clients alike that it's no wonder some agents can't price homes. Using the "on the surface" MLS data would make the price wrong 85% of the time. It takes a pro to get to the real scoop.

Excellent blog, Amanda.

Amanda,

You came out of the "Broker shoot" with a bang. Great post. Does anyone no why the listing checker is not working at this time with NTREIS?? It sure seems to be missing more mistakes by realtors.

Seeing each home in the market analysis is the key to the most accurate report. It's the height of professionalism to be familiar with the inventory of homes on the market and the features and drawbacks of each one. Your professionalism and knowledge of your market lets you provide your consumers with a more accurate analysis.

MAY

2008

Amanda, this is a great post. I too am a believer or doing a thorough job.

MAY

2008

Amanda- This is why you and The Hall Team are serious winners! Customer service like this should make any buyer interested in the Fort Worh area call you!

Amanda, this is a great post. In fact, I might steal this one and put on my web site! I'll even give you credit..."The Red Head"!

MAY

2008

Jesse, if you aren't right about the 85%, I am sure you are close. Pricing too low or high is avoidable when you take the time to get to know the market.

Becky, I wasn't aware that listing checker isn't working, but even when it's up and running smoothly, it is only designed to catch the obvious. The MLS relies heavily upon humans to catch human error. What shocks me is when I send a courtesy email to agents to let them know of an error and they still fail to make the correction. Some of them even acknowledge the email. Go figure!

Elaine, I think it goes even further than taking care of the needs of the client. When I take a buyer call, if my listing doesn't work for the caller, I have knowledge of what is available in the area that works for them. (This going the distance thing is profitable!)

Danny, thanks for stopping by! Hope all is well with you.

Vanessa, I am counting on it. My brokerage is just a small fish in a big pond here in DFW. It is our service level that keeps the referrals and repeat business coming in.

Sharon, don't steal it for your website, borrow it for your training manual!

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