YesTalk-167 - 5 Steps to Get Good at CMA's

Welcome to Kevin Ward's Yes Talk for Realtors. This is Kevin Ward. How to master how to get good at doing comparative market analyses. How do you get good at doing a comparative market analysis? Now this video is not on how to do a market analysis. That's something that hopefully your broker has taught you and if they have not taught you, then ask them. And if they can't teach you, then you can go to myagentpowerlaunch.com and in that online course there, one of the bonuses is a deep dive training in to how step by step, how do you do a market analysis? How do you actually do a comparative market analysis? However, in this video I want to talk about once you know how to do a comparative market analysis, how do you get good at it? How do you get good at doing a CMA that you can trust? How do you that you can count on that you can feel confident that when I look at this market analysis I can actually determine how much a house should actually sell for. And so in this video I'm going to give you five steps of how to do that. How to master getting good at a market analysis once you know how to do one. So number one is you got to get out into the market and get to know the market. And the way you do that is step number one is preview 10, 10 or more homes, new listings every week. Every single week you want to get out there and look at houses, look at the new listings that are coming on the market or the active listings that are out there on the market. And I recommend that you look at 10 houses a week or a couple of houses a day on average. Now you can go look at typically four to six houses an hour depending on how fast you are, how tight the neighborhood is or the areas are that you're looking. You can go out and look at a bunch of new houses. It does not take you but 10 or 15 minutes where you can do a walkthrough in five to seven minutes in through a house, five minute drive to the next house and go do that. You just set up preview appointments and go do that. Now I recommend 10 a week and you can do it a couple a day when you're out doing your door knocking or prospecting and just find a couple of active listings that are out where you're going to be, set a preview appointment on them and drop by there. Or you can do it in one afternoon, spend a couple of hours just going to preview properties and go look at 10 different houses in a specific area. Alright and new listings. If you have broker opens or sells truth, you can do it however you want to do it. The key is get out there and look at houses. Look at houses that are on the market and get a feel for, okay, this house in this neighborhood, they're listing it for 1.6 million. Okay, now I kind of know, kind of get a feel for that. Now that doesn't tell you necessarily what it's going to sell for, but we'll get to that in a minute. The key is that you get out there and consistently look at properties. Now think about it. If you look at 10 houses a week, let's say you're absolutely brand new in the market, you don't know the areas, you're still trying to learn it from scratch. If you'll give yourself 10 houses a week, in a month you've looked at 20 houses. I'm sorry, in a month you've looked At 40 houses. In a year you have looked at 500 houses on the market, all over your market area. Now you got to understand, you look at 500 houses, you're going to have a pretty good idea, pretty good feel for what's going on out there in the market. The key is consistently being out there and doing that. Now, second step, while you're out there previewing those properties, I want you to pick a couple of them every week. Of the 10 you're looking at, pick two of them and do CMAs on two of those 10 listings you're out looking at each week, do CMAs on at least two of the properties that you're previewing every single week. So this is just practice now, right? I go look at the listing or I can even do it before I go look at the listing, I can go like, okay, I'm going to go see these properties today. I like this one and this one, I'm going to do a CMA on them before I go out or after you go out, it doesn't matter. But the key is that you do the CMAs on at least two of those properties every week. And then when you do the cma, you decide the price that you would list it at if it was your listing. Alright, you pick the price. I look at the comps, there's all these comps. I see them, I look at them, I'm okay. And then I go out and I look at this property or before I go out, either way. And then I can go out. If you do the CMA before you go out, then when you set your price and say like, okay, if I was going on a listing presentation right now, I think this property would be, would be worth 1.5 million. You can look at the property and like, oh, nicer than I thought. I think it would be 1.6 million or it's not as nice as I thought. I think it probably be 1.3 million or whatever it is. But anyway, when you do the cma, you then decide on the price that you would list it at if it was your listing. And then you track those CMAs that you do to see what they actually end up selling for. I want to know, okay, and I want to know how long it takes it to sell. So what that means is every week is I'm previewing this 10 homes, I'm doing CMAs on two of them. I'm writing down what I think the list price should be and what I think it'll sell at, which should be the same price. Because you're wanting to identify what the actual market value is, get good at that. And then you just have a get. You grab you a folder and every week you're taking those two CMAs and you're going to drop them in that folder. And every week as you get ready to do your previews for the week, you can pull out your folder and you can go back and look. While you're on the mls, you go back and look at those houses you've done the CMAs, see if they sold yet, and when they sell, you're going to see how long they sold, how long it took them to sell, what price did they actually sell for, did it require one or more price reductions? So you get a feel for was I right? Alright. And as you're doing this, you're getting a feel, you're getting a feel not only of the market, you're getting a feeling, also getting skilled at doing CMAs, you're also getting skilled at how do you make adjustments, what counts for what? What counts for this. So this is all still stuff you're doing on your own now. Step number three, rather step number four is now where you start getting outside help and that is ask for insights from the top listing agents in your office and from appraisers. So as you're learning this, if you do a CMA and then you look at it and then it's that property sells and you realize you're way off, go to one of the top listing agents in your office or talk to an appraiser and go like, here's what I saw. What did I miss? Okay. Or you can even talk to the listing agent if it's somebody you know. But the key is start asking for help. Ask for insights from other people that are good at understanding how you determine a market value of a property based on what the comps are actually saying. And then number five, the fifth step to getting great at cmas is to prospect every day, focus on sellers and get listing appointments so that you have real CMAs to do as well. Because now when that happens, it's game on. It's the real deal. This is not practice CMAs anymore. This is where I actually put the rubber meets the road. I'm actually putting my practice into action to go out and do a market analysis, present it, see what feedback I get from the seller, make, master that process and then get that listing and sell it. And then you'll know that you priced it right. It's all about determining how do you get great at something. Okay, so real quickly, preview tenement homes every week, do CMAs on two of them and track them and keep keep track of those to see how long it takes them selling what they sell for. Ask for, decide what price you would set on it and then track it. Number four, ask for insights from top listing agents and appraisers in your area. And then prospect every day and set listing appointments. So you're doing your own CMAs because that's ultimately the best way that you are going to prepare. Now if this video has helped you, give it a thumbs up, subscribe to the channel. If you haven't done that before. If you have any questions on it, please post them down below. And again, this video is not designed to teach you step by step how to do a CMA. It's how to get good and accurate at doing CMAs. If you want a deep dive training into how the steps by step how to actually create your own cma, then get a register for my agent Power launch online training course. Go to agentpowerlaunch.com, register for that training. That is massive amounts of modules on everything you need to do in your first year as a real estate agent to help you become successful as a real estate agent. And one of the bonus trainings on it is my complete course on how to do CMAs. How to do comparative market analysis that normally I teach to my coaching members. So hope that helps. Now see you on the next video. Hey there, it's Kevin. I hope you enjoyed today's podcast. Are you tired of getting no after no. When you're out there trying to get listings and trying to inspire sellers to say yes to you. Then I'd like to invite you to download a free copy of my no BS listing presentation. This presentation will guide you through exactly what to say that will have motivated sellers saying yes to you over and over again. Stop getting stumped with skeptical seller objections or the famous we need to sleep on it. Eliminate the resistance and have sellers ready to hire you and give you the listing before you even finish your presentation. To get a complimentary copy of my proven listing presentation, go to yes masters.com forward/download again, that's yes masters.com download to download your free copy today. Sam.