Transcript Slide 1

Comparative Market Analysis
1234 Seller Drive, Anytown
Prepared For:
Mr. and Ms. Seller
1234 Seller Drive
Anytown, Ontario 1A1 A1A
Researched and Prepared by:
Agent Name
Sales Representative
Date Prepared: enter date here
Comparative Market Analysis
Date
Dear Mr. & Ms. Seller:
I know that your home is probably the most valuable possession you have. In fact,
many of the people I serve have only the equity in their property to see them through to
their retirement years. With this in mind, I want to thank you for trusting me to help you
through the process of selling your home.
My first objective is to help you set a listing price that represents your property’s top
market value – an objective that requires a thorough understanding of the market. To
help you in this regard, I’ve included a detailed market analysis that provides
information about similar properties that are currently for sale or recently sold. It has
been prepared to ensure that you make the most informed decision you can when
pricing your property.
Additionally, this presentation also includes a description of my marketing strategy, an
outline of my services to you, as well as great tips for preparing your home to sell.
I welcome the opportunity to serve you, and encourage you to contact me whenever
you have questions about the marketing and sales process.
Sincerely,
Agent Name
Sales Representative
Southway Realty Inc., Brokerage
Office: 905-346-0280
Cell: 000-000-0000
Email: [email protected]
Comparative Market Analysis
Marketing Services Overview
• CLICK HERE to modify / add services
• Professional lawn sign
• Multiple Listing Service
• Scheduled Open Houses
• Creative feature sheets
• Internet marketing
• Just Listed cards distributed
• Open House invitations to neighbourhood
• Direct mail and email campaigns
• Notifying all potential buyers in my database
• Salesperson networking
• New Listing announced to over 1000 REALTORS® on “hot sheet”
• Local real estate newspaper ads
Comparative Market Analysis
Market Analysis Explanation
This Comparative Market Analysis will help determine the correct selling price of
your home. Ultimately, the correct selling price is the highest possible price the
market will bear.
This market analysis is divided into three categories:
1. Comparable homes that are currently for sale
Looking at similar homes that currently offered for sale, we can assess the
alternatives that a serious buyer has from which to choose.
2. Comparable homes that recently sold
Looking at similar homes that were sold recently, we can see a clear picture of
how the market has valued homes that are comparable to yours. Banks and other
lending institutions also analyze these sales to determine how much they can lend
to qualified buyers.
3. Comparable homes that failed to sell
Looking at similar homes that failed to sell, we can avoid pricing at a level that
would not attract buyers.
The Comparative Market Analysis has been carefully prepared for you, analyzing
homes similar to yours. The aim of this market analysis is to achieve the maximum
selling price for your home, while being able to sell your home within a relatively
short period of time.
Comparative Market Analysis
Internet Marketing
90% of Buyers begin their
search for a home by
looking on the internet.
Source: National Association of Realtors (NAR) 2009 Profile of Home Buyers and
Sellers Report
My marketing program is designed to give your property
maximum internet exposure. Full marketing details of
your property will be placed on these websites:
• www.realtor.ca
• www.mls-niagara.com
• www.HomesAcrossCanada.com
• www.SouthwayRealty.ca
• www.mywebsite.com
• Facebook, Kijiji
Comparative Market Analysis
How I will help You…
In addition to my marketing services, I will:
• Help you determine the best asking price
• Offer proven advice on how to prepare your home for showings
• Contact you regularly so you stay fully informed of everything I do
to sell your home
• Provide feedback from showings and open houses
• Update you on any market changes that could affect your property’s
sale
• Pre-qualify motivated, potential buyers
• Present and discuss each offer with you and provide a “Seller’s Net
Sheet”
• Negotiate the highest possible price and terms for you
• Manage all contractual and transaction details and keep you
informed
• Assist in providing any required ancillary services (finance advice,
legal, moving company, etc.)
Comparative Market Analysis
Summary of Comparable Listings
Active Listings
Comparable listings that are currently for sale
Address
List Price
Bdrms
Baths
Sq Ftg
123 East Main St
$ 129,000
2+1
1/0
975
456 West Main Street
$ 127,900
2+0
1/0
950
789 North Drive
$ 132,900
2+1
2/0
1,000
Address
List Price
Bdrms
Baths
Sq Ftg
123 East Main St
$ 129,000
2+1
1/0
975
456 West Main Street
$ 127,900
2+0
1/0
950
789 North Drive
$ 132,900
2+1
2/0
1,000
Expired Listings
Comparable listings that did not sell
Sold Listings
Comparable listings that were recently sold
Address
Sale Price
Bdrms
Baths
Sq Ftg
123 East Main St
$ 129,000
2+1
1/0
975
456 West Main Street
$ 127,900
2+0
1/0
950
789 North Drive
$ 132,900
2+1
2/0
1,000
Comparative Market Analysis
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at this point of the CMA
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Comparative Market Analysis
Estimation of Price
The analysis of potential list and sale price of your home has been carefully
calculated based on the specific and unique characteristics of your home. This
analysis has also been calibrated with homes which are most comparable to yours,
including ones that are currently listed for sale and ones that have recently sold.
Consideration of current market trends have also been factored in to this analysis
of list price.
1234 Seller Drive, Anytown
Estimated List Price Range: $ 129,000 – $ 132,000
Estimated Sale Price Range: $ 125,000 – $ 128,000
Comparative Market Analysis
The Pricing Pyramid
+15%
+10%
Market Value
-10%
-15%
10%
30%
60%
75%
90%
This graph illustrates the importance of pricing correctly. The centre line
represents market value. As you move above this market value, you
attract a much smaller percentage of prospective buyers, greatly reducing
your chances of a sale. Conversely, as you move below market value,
you attract a much larger percentage of potential buyers.
Comparative Market Analysis
Market Activity
Activity
1
2
3
4
5
6
7
8
9
10
11
12
13
Weeks on the Market
This chart illustrates the level of excitement and interest in a new listing
over time. When a property is first listed, it generates a very high level of
interest from prospective buyers which reduces dramatically over time. It
is important to be priced correctly from the beginning, during the peak of
this activity.
Comparative Market Analysis
Consequences of Overpricing
The strategy of overpricing your property – knowing that you can reduce the
price later – might make sense at first glance. However, it seldom works. In fact,
Sellers who overprice their properties, even just 10% above market value, often
end up getting less than they would if they had priced it properly from the start.
Here is why:
•
A high price on your property makes other comparable properties more attractive,
so you actually help to sell your competition.
•
Fewer buyers will respond to ads, fewer Salespersons will show your property to
their buyer clients, and you will get fewer serious offers.
•
Inflated prices often lead to mortgage rejections and critical lost time waiting for
finance approvals that don’t go through.
•
Reducing the price after buyers have begun to perceive your home as a “stale”
listing will not generate nearly as much interest as if you had priced it properly
from the start.
This is why correctly pricing your
property to coincide with its window of
maximum market exposure and buyer
interest is so important.
Comparative Market Analysis
Seller’s Net Sheet
Sale Price:
$_________________
Less: real estate fee
$_________________
Less: HST (13%)
$_________________
Less: legal fees
$_________________
Less: Mortgage balance
$_________________
Less: Mortgage penalty
$_________________
Net After Expenses
$_________________
Comparative Market Analysis
Preparing Your Home to Sell
When presenting your home to prospective buyers, first impressions are crucial. Buyers
begin judging your home the moment they see it, and generally they prefer homes that
are well –maintained , clean and clutter free homes - - homes they can picture
themselves living in. That is why home improvements, particularly if they address the
anticipated needs of buyers, can boost your home’s saleability and sale price.
Here are a few proven, cost-effective tips that will help your home look its best:
Interior
• Clean and tidy the entrance, clear stairs and halls, store all excess furniture
• Brighten interiors with fresh, light-toned paint
• Shampoo carpets, clean and wax floors
• Organize countertops – remove appliances if necessary to make them look
spacious
• Organize and clean out closets to make them look larger
• Clean and freshen bathrooms, put out clean towels, minimize clutter
• Clean mirrors and windows to make them sparkle
• Organize and clean basement and garage
• Perform necessary minor repairs and touch-ups to walls, windows, fixtures, etc.
Exterior
• Mow and rake the lawn, trim hedges, weed and edge gardens
• Sweep driveways and sidewalks, pick up any litter
• Repair gutters and eaves, touch up exterior paint
• Plant extra flowers for colour, or place potted plants beside the front door
• In the winter months, keep driveway and walkways clear of ice and snow
• Hang a seasonal or decorative wreath on front door
• Make necessary repairs to fences, exterior light fixtures, screens, shutters