Summary
Highlights
To enhance accuracy, it's recommended to open a second search window in Matrix. This allows for a quick review of the subject property's past MLS activity and sales history. Looking at old listing photos from previous sales helps assess if the property's condition has improved, stayed the same, or worsened, which is vital for an accurate valuation during a listing appointment.
The goal is to find 6 to 9 good comparable sold homes, ideally within the last 180 days. Start broad and narrow down the search. Begin by defining the subdivision (e.g., Meadow Green) and zip code (e.g., 77062) to ensure geographical accuracy. The video demonstrates using a wildcard character (*) in the subdivision search to account for varied spellings and ensure all relevant properties are included. A map search with polygon drawing is also introduced as a robust alternative for defining a specific search area, especially when subdivision names are inconsistent or unknown.
Refine the search by considering sold and expired listings. Expired listings are valuable as they indicate properties that didn't sell, often due to overpricing. Important criteria for narrowing down comparables include square footage (e.g., 2000-2999 sq ft for a 2477 sq ft subject property), number of stories (one-story homes often sell for a higher price per square foot due to higher building costs), and specific features like a pool or number of bedrooms. The video shows how varying these filters significantly impacts the number of results, aiming for a manageable set of relevant comparables.
Once a list of comparables is generated, it's crucial to review each property's photos and agent notes. This step helps determine their condition relative to the subject property. Factors like lot size, number of bedrooms, and upgrades are important. The presenter highlights the importance of looking at active listings as competition for a seller's property, and for buyers, understanding what else is on the market. The condition of a comparable property, even down to details like flooring, countertops, and backyard features, directly influences its value and how it compares to the subject property.
After selecting the best comparables, use the 'Quick CMA' feature in Matrix to generate a spreadsheet. This report provides detailed information, including price per square foot, average list price, and average sold price. It's common to exclude outliers (very low or high sales) that skew the average. The video demonstrates how to remove a comparable that is significantly smaller or sold for a much lower price. The final CMA report, often downloaded as a PDF, is shared with the client. For listing appointments, it's advised to send the CMA ahead of time, then discuss it in person. For buyers, the CMA should be sent and reviewed before typing up an offer to ensure they understand the property's value.
Developing good CMA skills requires practice and a 'private investigator' mindset to identify the best comparables. Other factors to consider for refinement include garage size or lack of a pool. The video also introduces the flood zone mapping feature in Matrix, which is critical for buyers. When communicating with clients, especially when their property might not be as desirable as comparables, it's suggested to let the data (photos in the email report) speak for itself. Transparent and honest communication, showing thorough homework, builds client trust.
The video emphasizes that the most important skill for a realtor is mastering the Comparative Market Analysis (CMA). It's essential for both buyer's and listing agents to determine accurate property values and avoid liability issues. The process starts by logging into HAR and Matrix, then using Realist to input the subject property's address (e.g., 14911 Weybridge) and collect key details like bedrooms, bathrooms, square footage, lot size, year built, and features such as a pool or number of stories. It's crucial to verify information, as public records can sometimes be inaccurate.