New Listings that Compete with Your Listing
Listings Removed from the Market or Sold
Status changes, such as withdrawn listings, those that go under contract or those that sell could influence the price of your also. One data set overlooked by the majority of real estate agents is the “absorption rate.” It reports on this and the previous items in this list. Properties coming on the market and leaving, as well as how long they stay on the market are the variables in the absorption rate calculation.
Competitive Properties Price Changes
Needless to say, if comparable and competing listings in an area are lowering or raising prices, the real estate agent needs to be aware and advise their listing clients of any required actions on their part.
Market valuation is an ongoing process and cannot be allowed to stagnate. If there are seven homes in a subdivision for sale, including your listing, and three or four drop their prices significantly, you need to be aware and act accordingly.
It can work the other way just as easily. If those 7 properties drop to an inventory of only 3 available, you could be in a position to raise the price. If you want to impress a listing client, call them up and tell them you would like to talk about a price increase!
Sold Competing Properties Require a New Comparative Market Analysis
When comparable and competing properties in an area are sold, the selling price is a bit of information you want right away. When they turn up on the hot sheet, you may want to bring up your original CMA and make adjustments. There could be a price change in your plan based on the results.
Actually, you may be doing a new CMA in any of several situations. Too many agents do the first one, list the property, and then they just wait for a buyer. If you’re in a fast market, this will work. If your listing is reaching what you consider to be too many days on market, do another CMA.
If you’re working with buyers, you should also be doing a CMA of listed comparable properties to help them to compare for value.