Course Credits:
Required course for the Pricing Strategy Advisor (PSA) Certification.
Elective course for the Accredited Buyer's Representative (ABR®) Designation.
Duration: 1 Day
Format: Classroom
At the conclusion of this course, students will be able to:
Module 1: Principles of Pricing
Module 2: Choosing Appropriate Comparables
Module 3: Preparing the CMA
Module 4: Presenting the CMA
Module 5: Working with Appraisers
Module 6: Honing Your Pricing Habits
Introduction Welcome Instructor and Student Introductions About This Course How to Earn the Pricing Strategy Advisor (PSA) Certification Benefits What You Will Learn Module 1: Principles of Pricing Module 2: Choosing Appropriate Comparables Module 3: Preparing the CMA Module 4: Presenting the CMA Module 5: Working with Appraisers Module 6: Honing Your Pricing Habits Introduction Exercise Module 1: Principles of Pricing Learning Objectives What is a CMA? Not the Same: CMAs and Appraisals Valuation Services Matrix The Purpose of CMAs Who Needs CMAs? Sellers Buyers Agents Advantages of CMAs for Sellers Buyers Agents Valuation Language and Basic Principles Cost, Price, and Value Market Value According to Fannie Mae Pricing and the REALTOR® Code of Ethics What the code says Article 11 reads Standard of Practice 11-1 reads Standard of Practice 11-2 reads Value or Price? Interpreting the Code: The Importance of Competency Exercise 1.1: Is Agent Alex Competent to Develop This Price Opinion? Module 2: Choosing Appropriate Comparables Learning Objectives The Goal: Optimal Similarity to the Subject Characteristics of Comparables Date of Sale Location Size Micro Markets Amenities Exercise 2.1: Amenities in Your Market Improvements Exercise 2.2: Improvements in Your Market Number of Comparables Fundamental Principles for Choosing Comparables Highest and Best Use Arm's Length Transactions Fannie Mae Guidance on Choosing Comparables What the Guidance Says, Selection of Comparable Sales Interpreting the Guidance Roadblocks to Choosing Comparables: Imperfect Information Resources for Identifying Comparables and Analyzing Markets MLS Public Records REALTORS Property Resource® (RPR®) Automated Valuation Models Access to RPR® and RVM® Module 3: Preparing the CMA Learning Objectives The Role of Supply and Demand in Pricing Absorption Rate Exercise 3.1: Using Absorption Rate to Advise Clients Methods of Adjusting Comparables Cost-Based Adjustments Market-Based Adjustments The Importance of Market Expectations Making the Adjustment Applying the Principles of Substitution and Market Expectation Substitution Fannie Mae Guidance on Adjusting Comparables What the Guidance Says Analysis of Adjustments Sales or Financing Concessions Interpreting the Guidance Specific Considerations in Determining Adjustments Bedrooms Bathrooms Gross Living Area Adjusting for Gross Living Area Age Lot Size Potential Mistakes and Special Challenges in Making Adjustments Double Dipping The Wrong Reasons to Adjust Outliers Stigmatized Properties Exercise 3.2: Adjusting Comparables and Arriving at a Price Range Module 4: Presenting the CMA Learning Objectives What the CMA Report Contains Common Disclaimer Information Guiding Clients through the CMA Understanding the Market Considering the Comparables and Competition Moving from a Price Range to a Listing/Offer Price Getting to Agreement When Sellers and Buyers Disregard Your Pricing Recommendations Exercise 4.1 Recommending a List Price Module 5: Working with Appraisers Learning Objectives When a Property Appraises Below Offer Price Distressed Markets & Appraisals Appraisals Compared to CMAs What Appraisers Do Who the Appraiser Works For Steps in Working with the Appraiser Meet the Appraiser Prepare Appraiser's Package Appraiser's Package Contents Appraisal Tools Return Appraiser Calls How to Read an Appraisal Report Interpreting an Appraisal Report Red Flags in an Appraisal When a Property Appraises Below Offer Price Distressed Markets & Appraisals Challenging an Appraisal The Long Life of an FHA Appraisal Module 6: Honing Your Pricing Habits Learning Objectives Listening to the Market Staying Up to Date on Market Changes Revisiting Historical Data Developing Human Resources Following Industry News Exercise 6.1: How Do You Stay Up to Date? Educating Clients Seven Deadly Seller Sins Five Buyer Bloopers When Homes Sell Quickly: I Should Have Asked More! Sellers in the Driver's Seat What Clients Can and Cannot Control The Pricing Pyramid Revisiting Price Legal and Ethical Requirements Confidentiality Obligations Standards of Practice 1-9 Records Retention Exercise 6.2 Your Challenges in Pricing Discussions Conclusion Key Learning Points Questions and Answers Exam
Introduction
Conclusion
Exam
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