Comparative Market Analysis

Local market knowledge

Property condition

Online valuation tools

Feedback and networking

1. Comparative Market Analysis

A comparative market analysis (CMA) is a report that compares the price of home with the similar properties which have recently sold in the area.

A CMA considers a property’s location, size, age, and features to determine its market value. Real estate agents can help sellers understand why an agent suggests a particular price by providing clients with a CMA. Although a recommended home price may or may not meet seller’s expectations, showing a client that their home is priced accurately with a well-researched CMA will be much easier.

2. Local market knowledge

As a real estate professional, you know your local market extensively. Using this knowledge to educate your clients can keep you both on the same page for pricing.

Educating clients on current market trends, demand, supply, and the average price per square foot in the area help sellers price their homes accurately, ensuring factors such as the time of year, competition, and other market conditions are considered. It also helps build trust between you and your clients, making them more likely to be receptive to your pricing suggestions.

3. Property condition

4. Online valuation tools

While a client shouldn’t solely depend on online tools, they can increase their understanding of accurate pricing. Similar to a CMA, valuation tools often use public data and algorithms to calculate the value of a property. Although online consumer valuation tools can be somewhat misleading or inaccurate as they don’t always represent current market conditions, real estate professionals can help clients interpret the results for additional pricing information and research.

5. Feedback and networking

As real estate professionals spend the majority of their time networking with other agents, potentials leads, and buyers and sellers, they can gather valuable feedback.

For example, an agent could hold a broker’s open to see what other agents think. Their feedback or thoughts about price can help agents recommend an accurate price for their sellers.