We all know a CMA is important. But is your data really as accurate as it could be? The tool you use can determine the accuracy of the CMA product you produce.
An accurate CMA takes time. You’ll likely start by doing extensive research on your property. When you’re ready to pick comparable area properties, it’s also good to do some research on the CMA tool you plan to use. (We recommend Matrix. The CMA tool is built in!) Typically, the more manual the process is, the better. Yep. We said it. And it’s the truth! Be leery of an “easy” button. How does that system pick its comps? You might not know. Were you able to review and account for every little difference? Eh, probably not. But it’s good enough, right? It’s 2017; surely by now they’ve narrowed it down to an exact science. Not likely. That’s not to say quick CMAs don’t have their place, because they do. Perhaps you’re looking at properties with a client and they have a last-minute request. It’s handy to generate an off-the-cuff report, but it’s unlikely you’d want to use it to make your final pricing decision or something you’d want to give your appraiser.
Every real estate market is different. And, right now, Denver is arguably one of the most challenging in the country. You’ve positioned yourself as a source of expert knowledge for your clients. You’ll tell them the number they should pay for their dream home or the specific price point at which they should list, and they’ll trust you. Don’t settle for something that could be less than accurate. When you’re ready to put together your next CMA, be sure to allow yourself enough time to really dig in and get it right. If you haven’t already, sign up for the REcolorado training course How Matrix and Realist Can Help You Price Properties. Register here for the June 6 session at REcolorado. Or, if you're in Boulder on June 20, a member of the REcolorado Training Team will host the course at Boulder Area Realtor Association. Register here for that session. It’ll be worth it.
Pro Tip: If you’re using Matrix, click the ‘Help’ tab in the top right corner of the system. In the ‘Help Index’ search box, type ‘cma’ and then click the Search button. You’ll return tons of helpful resources that’ll start you off on the right foot.