When you are working with real estate sellers, the seller must understand the comparative market analysis before you move on to the next steps. They not only need a clear explanation of the CMA, but they will need to make some decisions along the way. As their real estate agent, a part of your job is to guide them to the best-selling price. The CMA will help you do this. Here are some tips to help you get the best results.
1. Explain what a CMA is in general terms.
Some sellers have been through CMA presentations many times, while for others, this is their first experience with a CMA. Therefore, you might need to spend a few minutes describing the general definition of this analysis and why it is essential to them. For all sellers, it helps to ask them if they’ve ever seen a CMA. Then, as you begin to see how much experience they have, you can discuss this document at their level of understanding.
2. Go over your supporting data as thoroughly as needed.
Describe to the seller how you arrived at the recommended price on the CMA. Of course, in most cases, their eyes will snap immediately to that price. So, before you present it to them, talk a bit about what factors affect the price and the supporting data you have gathered to create your CMA. You can point out these factors as you present the CMA and answer any questions they might have while you both are still looking through the CMA.
3. Share your expertise.
When presenting the CMA, you can impress the real estate seller with your knowledge of the real estate industry, local market, and realtor skills. If they ask a question you don’t know, write it down and get back to them with the answer. Anytime they seem puzzled or otherwise uncomfortable, give them reassuring facts.
On the other hand, you can do more harm than good if you aren’t truthful. Working with real estate sellers requires you to help them keep their expectations as realistic as possible. And your expertise will help them set that bar at the right place so that they conclude the transaction with a good feeling of success.
4. Allow enough time to discuss pricing decisions.
Sometimes, you need to use all your realtor skills to manage the pricing discussions. Your seller might have lived in this home for many years. To them, it may seem much more valuable than what they could ever get for it. This situation may require some time to resolve.
If you rush the seller through the pricing decisions, they might think you are trying to cheat them or are incompetent at your job. This is where your confidence really comes into play.
Remember that the pricing decisions involve more than the initial listing price. You will suggest a range of prices, and the buyer must approve it. However, if they want to go outside that range, you need to discuss the CMA more. They can do that if the seller still doesn’t agree within your range. If they do, have them sign a form saying they chose to go outside the range you suggested. This will protect your professional reputation.
5. Listen and observe during and after the presentation.
As you give your CMA presentation, don’t lose sight of the fact that the seller is likely not an expert here. They might have questions or wrong impressions of what is involved in pricing a home based on a CMA. Watch their reactions to the presentation to determine if they need more information. After all, some things might seem obvious to a seller’s agent who has been to real estate school and taken online training courses like Roadmap to Success: Sellers. If you see a puzzled look on the seller’s face, you can ask them questions to understand their confusion and clear it up.
6. Watch for red flags.
Several red flags warn you about issues you might have with a seller. You can help them avoid many problems during and immediately after the presentation. Here are a few signs that the seller is not on the same page as you are.
You might have issues if the seller:
· Wants to put a price on their home significantly higher than the competition.
· Plans on refusing the early offers as a selling strategy.
· Doesn’t want to put the property in good condition before they sell.
· Takes the idea of showing the home very lightly and doesn’t plan to put any effort into showing it.
· Doesn’t recognize the difference between buyers purchasing a commodity and sellers putting their treasured home on the market.
· Is nervous about the price and plans to drop it immediately.
Do Your Job Well When Working with Real Estate Sellers on the CMA
Creating and sharing your CMA is your first major milestone when working with real estate sellers. As a seller’s agent, you show them exactly how pricing should work. This will be one of the most crucial discussions you have with them. It will set the stage for a successful transaction and a relationship of trust between you.