90 Day Challenge – Day 43 – Tools You Can Use: MLX CMA (With Listing Presentation Tips)

CMA = Comparative Market Analysis = Mystery:

Why a mystery?  Because every agent has his own way of creating the CMA as well as his own way of preparing his listing presentation.  Therefore, this post is geared to new agents who may have just completed training and to veteran agents who might need a vitamin B-12 shot.

This post is perhaps the first of three posts on the CMA:  (1) MLX (2) Iris/Imapp and (3) Realist, which will be written by a manager who has access to that program. The most important, and yet the most difficult, task an agent has to perform today is the comparative market analysis.  Not only is the task difficult to do, it is equally difficult to teach.

As stated, some methods may include pulling information from:

• EWM.com
• Facts & Trends, and tax rolls such as
• Realist, and
• Iris Imapp.

The MLXchange CMA compares apples to apples or listed properties to listed properties.  I am under the grand assumption that the Seller (who is sitting in front of me) is desiring to list his house  . . . with me; therefore, I am comparing relevant properties to his particular property — those that are for sale (A), have pended (PS), are in back-up status (B), have sold (CS), and those that may have expired (X).

Pre-CMA Preparation:

You have interrogated your Seller using the Home Sellers’ Worksheet, to get as much information as possible.  If you are fortunate, perform a two-step listing presentation:

1.  Visit the home and take photographs and visit a relevant active listing in the community before of after the home visit.

If you cannot perform the two-step, get into the community (by making an appointment to see a relevant property for preview purposes) and shoot pictures of the subject property and community amenities.

2. Prepare the:

• CMA and present it as part of the listing appointment.
• Brochure (in draft)
• Just Listed card (in draft)

3. Print the Warranty Deed from the tax rolls to substantiate ownership (who will sign the Listing Agreement).

4. Print the tax information on the subject property from both MLS tax roll and BCPA.net (Broward) and MiamiDade.gov (Dade).

5. Print aerial views of the property from tax roll to see where the property is seated in the community.  Also, if you have waterfront property, you can compare the water views with other relevant properties.

Sample Subject Property:

Our subject property for this exercise is the Monterey model in Pembroke Falls.  This home boasts:

• 4 bedrooms
• Office with window, double doors, no closet (close to master suite – could double as a nursery)
• 3 baths
• 2 a/c units
• Granite countertops; black appliances
• Tile in social areas; carpet in bedrooms
• Neutral throughout
• SF: 3348 total area; 2865 under air
• Dry lot; no pool, fenced
• Backs up to Sheridan Street; buffered by concrete wall and large swale
• In a community with a multi-million dollar clubhouse; community pool; gym

This is the same house I use for my Broward students each and every session.  In the past five years, we have watched the price of this home go UP and DOWN.

Your Search Template:

I assume you know how to add a client into your MLX client database and you know how to create a search template in MLX.  Your search template (Single Family) should look similar to the image below:

The filters have a drop list with qualifiers.  If your filters do not show drop lists, please click on “Advanced Search Options” right above your action screen at the bottom, and the drop lists with choices will appear.

The Search Template Criteria:

1.  Select the appropriate seach type (single family, condo) and search template (you should have created a CMA template to match the first illustration of this post). Please know that you must create a template in each of the search types.

2.  The status should be A, B, CS, PS, X.

3.  Use the map for the area(s).

We will take advantage of the map feature to “polygon” the Pembroke Falls area.  Therefore, the “map search” will take the place of “area” — therefore, it is not necessary to type in the MLX area.  Remember from a prior post that multiple map shapes can be used. The CMA process is in the movie.

4.  (As taught by one of the Boards) I use SF total area:  100 SF under my subject and approximately 100 SF over my subject, i.e., if my subject square foot total area equals 3348, I will type in 3200 to 3500 in the search field criteria boxes.

5.  Waterfront must be designated either Yes or No.  You cannot compare a dry lot to a waterfront lot.  Only God can add a lake. You may or may not want to designate POOL Y/N, because perhaps a pool could be added to the comparable property — best if you can specify Y/N to the pool but you may not have enough comparables if you get that specific.

6. If I am dealing with a planned (cookie-cutter) community, I will add the design description (1, 2 story) to try to narrow the results grid to my particular subject home model.

7. Closing date – acccording the appraiser, we should search only ninety (90) days back.  That is the tough one, and why you may need to compare similar neighborhoods using the multiple polygon search on the map to get enough data.

The CMA Wizard:

Click on the CMA icon at the lower righthand corner of the screen. You will activate the CMA wizard. It may be difficult to see in the movie, but once the CMA Wizard is activated, it is divided into eight different  steps:

1.  Getting Started: Select your client if you have not added him into your MLX database previously.  You have an opportunity to add him at this point.

2.  Subject Property: Use the tax search or a previous MLX number to autopop the subject property data into this step.  Be advised that because of the 5.0 upgrade, I had difficulty uploading a photo (upper rightside of screen).  If the property was in MLX previously, the main photo will autopop into that photo box.

3.  Comparables: (Remember — we never use the word “comparables”– — use “relevant sales” or “relevant properties.”)  Based on your search criteria, a grid will appear.  Here is where you print or “eyeball” the full detail and checkmark/select only those properties that are close to the subject.  You are limited to thirty (30) selections.

4. Adjustments: Skip this step and make sure that the adjustment report is deleted from the “Select Pages” step.

5. Pricing: Review the CMA analysis. Edit the suggested value for the List Price, if necessary. You may go back to previous steps to make changes.

You may select one of the following as your pricing measuring stick:

• Selling Price – High
• Selling Price – Low
• Selling Price – Average
• Selling Price – Median
• List Price – High
• List Price – Low
• List Price – Average
• List Price – Median
• 0 Price Per Sq Ft – High
• Price Per Sq Ft – Low
• Price Per Sq Ft – Average
• Price Per Sq Ft – Median
• Assessed Tax Value Ratio – High
• Assessed Tax Value Ratio – Low
• Assessed Tax Value Ratio – Average
• Assessed Tax Value Ratio – Median

6.  Net Sheet: For your eyes only.  Do not show this to the client. Just like the adjustment report, do not print this report.

7. Select Pages: Choose the documents you would like to include in your CMA. Place them in the order in which you want them to appear using the up/down arrows in the selection box to the right. Options and content can be edited for some documents.

8.  View Report: Preview the CMA report. Go back to make any necessary changes. Print or send the finished report. Remember to add FULL VIEW at the end for your convenience in printing (which is for your eyes only).

Remember — there are colorful charts and statistics accessible from the grid/results screen that you may want to save as a pdf to add to your CMA.

To get from one step to another in the wizard, click  on NEXT STEP in the lower, right-hand corner.

Saving or E-Mailing the CMA:

Even though the CMA is saved in MLXchange under the CMA tab, I save it as a pdf so that I can access it offline and e-mail it as an attachment.  As the movie clip demonstrates, you can e-mail the CMA directly from MLXchange; however, the recipient can only print one page at a time which is inconvenient.

Even though the movie may be difficult to see (because I had to show the entire screen), you get a fair picture of the process.  The MLXchange CMA is only a part of the pricing exercise.  I compare the MLXchange results to the IRIS/IMAPP results (a subsequent post) and (if your Board has Realist) to the Realist results.

The Listing Presentation:

The CMA is just one part of the listing presentation. The presentation itself could be broken down into five parts:

(1) Initial Friendly/Trust Chat: Set down your materials at the kitchen table (if possible) and ask more questions; clarify, give them the agenda (let them know what to expect for the time you are together). This discussion may include their future plans and may be an outgoing referral opportunity for you.

(2) Home Tour: Let them talk!

• Discuss upgrades.
• What is going – what is staying.
• Staging issues noted.
• Sellers’ concerns about physical appearance or physical issues of the property.

(3) Presentation: Your time to talk! “Let me show you what I am going to do for you. This could be in the form of a Powerpoint Presentation (which has been prepared for you — e-mail me at [email protected]).  Your printed listing presentation Table of Contents could be broken down as follows:

• (1) ABOUT YOUR AGENT(S)
• (2) ABOUT EWM
• (3) EWM AND THE WEB
• (4) EWM AND RELOCATION
• (5) MORE INTERNET SITES
• (6) HOW I/WE WORK
• (7) MARKETING (PRINT)  Marketing Plan
• (8) INTERNATIONAL AFFILIATES
• (9) FACTS & TRENDS (applicable graphs and analyses)
• (10) FACTORS THAT AFFECT OUR MARKET

(4) Review of the relevant listings and sales (Printed CMA).  Your CMA is bound separately and will not be left with the Seller.  Reasons?  (1) Your work product or (2) our office policy.  Pick one reason or use both.

(5) Complete all paperwork in the Listing Presentation Paperwork Packet you have prepared for this meeting. Here are some suggested forms for your packet:

#	DOCUMENTS	RESPONSIBILITY
1.	Listing Cover Sheet	Agent fill in/turn in with packet
2.	Sign Request Form	Agent
3.	Procedures for Listing	Agent
4.	Exclusive Right of Sale Listing Agreement	Agent, Sellers (all)
5.	Addendum A. Condominium Association Disclosure	Sellers Initial/fill out
6.	Addendum B. Homeowners’ Association Disclosure	Sellers Initial/fill out
7.	Brokerage Relationship Disclosure	Sellers
8.	Affiliated Company Business Disclosure	Sellers & eventually the Buyers will sign
9.	Owner’s Property Disclosure Statement	Sellers
10.	EWM Personal Information Form (about title, mortgage and homeowner’s assoc.)	Agent fill out
11.	Authorization to Call	Sellers
12.	EWM Permission to Film Virtual Tour	Sellers
13.	Processing a Listing (checklist)	For the agent
14.	Documents Required from Seller (form for Agent to fill out)	For the agent
15.	Security Guard Gate	Sellers Sign Agent Place Biz Card in RH corner
16.	RE1	Agent
17.	RE2	Agent
18.	American Home Shield Application	For Sellers to consider
19.	OUTGOING REFERRAL FORM	Agent to ask Seller about future move
20.	Lead Based Paint Disclosure (if home built before 1978)	Seller Eventually Buyer and both agents will sign

• Get a key.
• Discuss showings.
• Discuss the electronic lockbox.

Break a leg.  Just like a Broadway actor, the more prepared you are, the more confident you will appear.  Smile.  Give a strong handshake.  Compliment the Seller.  Respect his home.  Find something in common during the home tour.

List that house!

_________________________

Endnote:  Listing Presentation:  Are You Using the 12 Most Powerful Words in the English Language?

Listing Presentation:  The Movie

Facts & Trends data supports the MLX CMA  information in that:

	1 year			15 months
	Nov 07	Nov 08	% Change	Sep 07	Nov 08	% Change
Avg. Active Price	608	495	-18.6%	643	495	-23%
Avg. Sold Price	396	373	-5.8%	650	373	-42.6%

December 2008:  The home is worth about what the owner paid for it in May of 2004:  $380,000.