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Pricing Strategies: Mastering the CMA
Topics: Buyer Representation, Listing, Pricing, Residential Real Estate, Seller Representation
Designations & Certifications: Accredited Buyer's Representative (ABR®), Pricing Strategy Advisor (PSA)
Affiliation: PSA
Format: Classroom, Online
Pricing Strategies: Mastering the CMA

Course Credits:

Duration: 1 Day

Format: Classroom

Course Objective

At the conclusion of this course, students will be able to:

  • Select appropriate comparables and make accurate adjustments to them, for use in developing home price opinions
  • Guide sellers and buyers through the details of CMAs and the underlying pricing principles that inform them
  • Interact effectively with appraisers

Learning Objectives

Module 1: Principles of Pricing

  • Identify the purpose and benefits of CMAs
  • Define key terms related to pricing
  • Interpret Article 11 of the REALTOR® Code of Ethics as it relates to pricing properties

Module 2: Choosing Appropriate Comparables

  • Recognize appropriate criteria, resources, and guidance in choosing comparables
  • Identify causes of imperfect information and its consequences with for pricing properties
  • Use appropriate comparables in a CMA

Module 3: Preparing the CMA

  • Explain key principles of pricing that impact CMAs
  • Recognize correct guidance, as well as common challenges and errors, in adjusting comparables
  • Adjust comparables, using values developed from appropriate averages and cost data

Module 4: Presenting the CMA

  • Discuss CMA documents and pricing conclusions with clients
  • Address client concerns about pricing
  • Explain value principles to clients

Module 5: Working with Appraisers

  • Recognize the purpose of appraisals and the scope of the appraiser's role
  • Describe how real estate agents can work constructively with appraisers
  • Assess an appraisal and proceed appropriately when you think it contains inaccuracies

Module 6: Honing Your Pricing Habits

  • Recognize strategies and tactics for keeping up to date on your markets
  • Recognize common client misconceptions about price
  • Employ best practices for pricing properties in your daily work

Course Outline

Introduction

  • Welcome
  • Instructor and Student Introductions
  • About This Course
  • How to Earn the Pricing Strategy Advisor (PSA) Certification
    1. Benefits
  • What You Will Learn
    1. Module 1: Principles of Pricing
    2. Module 2: Choosing Appropriate Comparables
    3. Module 3: Preparing the CMA
    4. Module 4: Presenting the CMA
    5. Module 5: Working with Appraisers
    6. Module 6: Honing Your Pricing Habits
  • Introduction Exercise

Module 1: Principles of Pricing

  • Learning Objectives
  • What is a CMA?
    1. Not the Same: CMAs and Appraisals
  • Valuation Services Matrix
  • The Purpose of CMAs
  • Who Needs CMAs?
    1. Sellers
    2. Buyers
    3. Agents
  • Advantages of CMAs for
    1. Sellers
    2. Buyers
    3. Agents
  • Valuation Language and Basic Principles
    1. Cost, Price, and Value
  • Market Value According to Fannie Mae
  • Pricing and the REALTOR® Code of Ethics
    1. What the code says
      1. Article 11 reads
      2. Standard of Practice 11-1 reads
      3. Standard of Practice 11-2 reads
    2. Value or Price?
    3. 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
    1. Date of Sale
    2. Location
    3. Size
    4. Micro Markets
    5. Amenities
    6. Exercise 2.1: Amenities in Your Market
    7. Improvements
    8. Exercise 2.2: Improvements in Your Market
    9. Number of Comparables
  • Fundamental Principles for Choosing Comparables
    1. Highest and Best Use
    2. Arm's Length Transactions
  • Fannie Mae Guidance on Choosing Comparables
    1. What the Guidance Says, Selection of Comparable Sales
    2. Interpreting the Guidance
  • Roadblocks to Choosing Comparables: Imperfect Information
  • Resources for Identifying Comparables and Analyzing Markets
    1. MLS
    2. Public Records
    3. REALTORS Property Resource® (RPR®)
      1. Automated Valuation Models
      2. Access to RPR® and RVM®

Module 3: Preparing the CMA

  • Learning Objectives
  • The Role of Supply and Demand in Pricing
    1. Absorption Rate
  • Exercise 3.1: Using Absorption Rate to Advise Clients
  • Methods of Adjusting Comparables
    1. Cost-Based Adjustments
    2. Market-Based Adjustments
    3. The Importance of Market Expectations
    4. Making the Adjustment
    5. Applying the Principles of Substitution and Market Expectation
    6. Substitution
  • Fannie Mae Guidance on Adjusting Comparables
    1. What the Guidance Says
      1. Analysis of Adjustments
      2. Sales or Financing Concessions
    2. Interpreting the Guidance
  • Specific Considerations in Determining Adjustments
    1. Bedrooms
    2. Bathrooms
    3. Gross Living Area
      1. Adjusting for Gross Living Area
    4. Age
    5. Lot Size
  • Potential Mistakes and Special Challenges in Making Adjustments
    1. Double Dipping
    2. The Wrong Reasons to Adjust
    3. Outliers
    4. 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
    1. Common Disclaimer Information
  • Guiding Clients through the CMA
    1. Understanding the Market
    2. Considering the Comparables and Competition
    3. Moving from a Price Range to a Listing/Offer Price
    4. Getting to Agreement
    5. 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
    1. Distressed Markets & Appraisals
    2. Appraisals Compared to CMAs
    3. What Appraisers Do
    4. Who the Appraiser Works For
  • Steps in Working with the Appraiser
    1. Meet the Appraiser
    2. Prepare Appraiser's Package
    3. Appraiser's Package Contents
    4. Appraisal Tools
    5. Return Appraiser Calls
  • How to Read an Appraisal Report
    1. Interpreting an Appraisal Report
    2. Red Flags in an Appraisal
  • When a Property Appraises Below Offer Price
    1. Distressed Markets & Appraisals
    2. Challenging an Appraisal
    3. The Long Life of an FHA Appraisal

Module 6: Honing Your Pricing Habits

  • Learning Objectives
  • Listening to the Market
    1. Staying Up to Date on Market Changes
    2. Revisiting Historical Data
    3. Developing Human Resources
    4. Following Industry News
  • Exercise 6.1: How Do You Stay Up to Date?
  • Educating Clients
    1. Seven Deadly Seller Sins
    2. Five Buyer Bloopers
    3. When Homes Sell Quickly: I Should Have Asked More!
    4. Sellers in the Driver's Seat
    5. What Clients Can and Cannot Control
  • The Pricing Pyramid
  • Revisiting Price
  • Legal and Ethical Requirements
    1. Confidentiality Obligations
    2. Standards of Practice 1-9
    3. Records Retention
  • Exercise 6.2 Your Challenges in Pricing Discussions

Conclusion

  • Key Learning Points
  • Questions and Answers

Exam

This course is available online through REALTOR University Click here for registration
DateCompanyInstructorLocationRegister
05/17/2022 Pocono Mountains Association of Realtors Stroudsburg PA Register Online
570-424-8846, ext. 106
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05/18/2022 Academy of Real Estate Joseph Driver Easton MD Register Online
443.992.1003
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05/20/2022 Champions School of Real Estate Rebecca Hill Live Broadcast TX Register Online
1-800-284-1525
05/24/2022 Go Straley Seminars Rebecca Straley Live Broadcast VA Register Online
540-379-1949
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05/25/2022 New York State Association of REALTORS® Roseann Farrow Live Broadcast NY Register Online
518-463-0300 x220
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05/25/2022 Academy of Real Estate Laurel MD Register Online
443.992.1003
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05/26/2022 Rich Hart Global Inc./Evalucore Institute Atlanta GA Register Online
05/26/2022 Teton Board of REALTORS® Jackson WY Register Online
307-739-1180
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05/26/2022 Evalucore Institute Atlanta GA Register Online
404-400-4278
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05/31/2022 Santa Clara County Association of REALTORS® San Jose CA Register Online
408-445-8500
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06/02/2022 REALTOR Association of Southeastern Massachusetts Isabelle Perkins Taunton MA Register Online
508-993-0406
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06/02/2022 Greater Louisville Association of REALTORS® Louisville KY Register Online
(502) 894-9860
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06/06/2022 Pinellas REALTOR® Organization Live Broadcast FL Register Online
727-216-3007
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06/15/2022 San Antonio Board of REALTORS® Candace Cooke San Antonio TX Register Online
210-593-1275
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06/17/2022 Pikes Peak Association of REALTORS Richard Sands Colorado Springs CO Register Online
719-633-7718
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06/17/2022 Pikes Peak Association of REALTORS Sands Sands Colorado Springs CO Register Online
719-633-7718
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06/17/2022 Champions School of Real Estate Randy Smith Live Broadcast TX Register Online
1-800-284-1525
06/22/2022 Lakeway Area Association of Realtors Morristown TN Register Online
423-258-4572
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06/29/2022 St. Louis REALTORS® St. Louis MO Register Online
314-590-2312
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06/30/2022 Dynamite Productions Cheryl Knowlton Live Broadcast UT Register Online
801-380-8900
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07/14/2022 New York State Association of REALTORS® Randy Templeman Live Broadcast NY Register Online
518-463-0300 x220
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07/15/2022 Real Estate Education Services Live Broadcast CA Register Online
Send an Email
07/22/2022 Champions School of Real Estate Live Broadcast TX Register Online
1-800-284-1525
07/22/2022 Northern Arizona Association of REALTORS® Flagstaff AZ Register Online
928-779-4303
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08/10/2022 San Antonio Board of REALTORS® Candace Cooke San Antonio TX Register Online
210-593-1275
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08/16/2022 Go Straley Seminars Rebecca Straley Live Broadcast VA Register Online
540-379-1949
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08/18/2022 Realtor Assocawtion of Prince Wiliam Rebecca Straley Woodbridge VA Register Online
703-565-0036
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08/23/2022 Rhode Island Association of REALTORS® Live Broadcast RI Register Online
401-432-6903
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09/07/2022 Lenawee County Association of REALTORS Richard Conley Live Broadcast MI Register Online
(517) 263-0325
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09/26/2022 Dynamic Adorna Carroll Guam Register Online
09/26/2022 Greater Metropolitan Association of REALTORS® Richard Conley Live Broadcast MI Register Online
(248) 478-1700
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10/04/2022 Arizona REALTORS® Phoenix AZ Register Online
602-248-7787
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10/11/2022 New York State Association of REALTORS® Randy Templeman Live Broadcast NY Register Online
518-463-0300 x220
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10/13/2022 Ohio REALTORS® Columbus OH Register Online
614.225.6229
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10/13/2022 REMAXIntl Nashville TN Register Online
10/18/2022 Greater Tampa REALTORS Live Broadcast FL Register Online
813-879-7010
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10/19/2022 San Antonio Board of REALTORS® Candace Cooke San Antonio TX Register Online
210-593-1275
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10/20/2022 Greater Nashville REALTORS® Susan Barnette Nashville TN Register Online
615-254-7516
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10/26/2022 Greater Bergen Realtors Saddle Brook NJ Register Online
201-244-7000
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11/04/2022 NORTHERN VIRGINIA ASSOCIATION OF REALTORS Larry Anderson Fairfax VA Register Online
703.207.3204
Send an Email
11/15/2022 Go Straley Seminars Rebecca Straley Live Broadcast VA Register Online
540-379-1949
Send an Email
11/16/2022 Greater Metropolitan Association of REALTORS® Live Broadcast MI Register Online
(248) 478-1700
Send an Email
11/29/2022 Georgia Association of REALTORS Fayetteville GA Register Online
678-597-4133
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11/30/2022 Akron Cleveland Association of REALTORS® Alasandra Whitley Live Broadcast OH Register Online
216.525.4840
Send an Email
12/08/2022 Realtor Assocawtion of Prince Wiliam Rebecca Straley Woodbridge VA Register Online
703-565-0036
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Accredited Buyer's Representative (ABR®)

The Accredited Buyer's Representative (ABR®) designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to real estate practitioners by the Real Estate Buyer's Agent Council ('REBAC') of the National Association of REALTORS® who meet the specified educational and practical experience criteria.

At Home With Diversity®

At Home With Diversity® is a one-day certification course designed to present the changing face of the real estate industry. More importantly, the class teaches REALTORS® how to work effectively with

Certified International Property Specialist (CIPS)

The Certified International Property Specialist (CIPS) designation prepares REALTORS® to service the growing international market in their local community. It is awarded by National Association of REALTORS® to real estate practitioners in 50+ countries.

Military Relocation Professional Certification

The goal of Military Relocation Professional Certification Core Course is to educate real estate professionals about working with current and former military service members to find the housing solutions that best suit their needs as sellers or buyers and take full advantage of military benefits and support. Students will learn how to provide the real estate services at any stage in the service member's military career that meet the needs of this niche market and win future referrals.

NAR's e-PRO® Certification

NAR's e-PRO® Certification Program shows you how to use the latest social media technologies to create an online presence and reach today's hyper-connected consumers. e-PRO® also teaches you how to take advantage of rich media and e-office strategies.

NAR's Green Designation

NAR's Green Designation teaches real estate professionals about energy efficiency and sustainable building practices. Complete the 3-day program to have access to a wealth of benefits providing marketing support, ongoing education and industry guidance.

Pricing Strategy Advisor (PSA)

In the one-day Pricing Strategies: Mastering the CMA course, learn how to select appropriate comparables and make accurate adjustments, guide sellers and buyers through the details of comparative marketing analyses (CMAs) and the underlying pricing principles that inform them, and interact effectively with appraisers.

Real Estate Negotiation Expert (RENE)

The Real Estate Negotiation Expert (RENE) certification is designed to elevate and enhance negotiating skills so that today's real estate professionals can play the game to win. The courses examine all types of negotiation formats and methods as well as a full spectrum of tips, tools, techniques, and advantages so you can provide effective results for your clients.

RSPS - Resort & Second-Home Property Specialist

Resort & Second-Home Property Specialists (RSPS) receive extra expertise and knowledge with the RSPS certification, which covers the buying, selling, and managing of resort properties and second homes for recreation, investment, and development.

Seller Representative Specialist (SRS)

The Seller Representative Specialist (SRS) designation is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance. The designation is awarded to real estate practitioners by the Council of Real Estate Brokerage Managers (CRB) who meet specific educational and practical experience criteria.

Seniors Real Estate Specialist (SRES®)

The Seniors Real Estate Specialist (SRES®) 12-hour designation program trains REALTORS® to profitably and ethically serve the real estate needs of clients age 50+. Includes first year membership in the SRES® Council and its valuable services and benefits.

Short Sales & Foreclosure Resource (SFR)

The number of short sales and foreclosures are rising, presenting challenges for real estate professionals. The Short Sales & Foreclosure Resource (SFR) certification was launched by NAR to help REALTORS® meet the great demand for these critical services.

EAH

This course will empower you to expand your outreach in your community, teach you how to find resources and partners, and plan initiatives to contribute to a vibrant community. You will learn how to work with local employers to discuss employer-assisted housing (EAH), EAH's benefits, and three options employers can implement to help their employees become homeowners or afford a home close to work.

EHO

Expanding Housing Opportunities (EHO) is a course designed to educate real estate professionals on the range of affordable housing opportunities and clients seeking them.

ePRO

NAR's e-PRO® certification program helps REALTORS® learn how to leverage digital marketing theory and technologies in their day- to-day marketing efforts while protecting client information. Students will learn how to utilize advanced marketing tools and techniques including customer relationship management (CRM) systems, search engine marketing (SEM), search engine optimization (SEO), and social media to connect with customers. Students will also learn the importance of data privacy, the laws in place, and how to implement best practices as outlined by the Federal Trade Commission to protect client information from a data breach. Completion of this course will provide students with practical takeaways that can immediately be implemented to drive business and increase client confidence and trust.

GLOBAL

Diversify your clientele, expand your business, and globalize your network with NAR Global. Offering the Certified International Property Specialist (CIPS) Designation and other programs, we provide the research, tools and connections to help you succeed.

GREEN

NAR's Green Designation teaches real estate professionals about energy efficiency and sustainable building practices. Complete the 3-day program to have access to a wealth of benefits providing marketing support, ongoing education and industry guidance.

GRNC

The Real Estate Buyer's Agent Council (REBAC), f. 1988, promotes the superiority of a buyer's representative's skills and services. REBAC's membership is the world's largest organization of real estate professionals concentrating on buyer representation.

MRP

The goal of Military Relocation Professional Certification Core Course is to educate real estate professionals about working with current and former military service members to find the housing solutions that best suit their needs as sellers or buyers and take full advantage of military benefits and support. Students will learn how to provide the real estate services at any stage in the service member's military career that meet the needs of this niche market and win future referrals.

NAR

The National Association of REALTORS® (NAR), f. 1908, represents more than 1.1 million members and has worked to advance home ownership, real estate investment, private property rights and the free enterprise system in Congress and the Federal agencies.

PSA

In the one-day Pricing Strategies: Mastering the CMA course, learn how to select appropriate comparables and make accurate adjustments, guide sellers and buyers through the details of comparative marketing analyses (CMAs) and the underlying pricing principles that inform them, and interact effectively with appraisers.

REBAC

The Real Estate Buyer's Agent Council (REBAC), f. 1988, promotes the superiority of a buyer's representative's skills and services. REBAC's membership is the world's largest organization of real estate professionals concentrating on buyer representation.

REBAC

The Real Estate Buyer's Agent Council (REBAC), f. 1988, promotes the superiority of a buyer's representative's skills and services. REBAC's membership is the world's largest organization of real estate professionals concentrating on buyer representation.

REBAC

The Real Estate Buyer's Agent Council (REBAC), f. 1988, promotes the superiority of a buyer's representative's skills and services. REBAC's membership is the world's largest organization of real estate professionals concentrating on buyer representation.

REBI

RESORT

The REALTOR® Resort specialty is designed to appeal to real estate practitioners who facilitate the buying, selling, or management of properties for investment, development, retirement, or second homes in a resort, recreational and/or vacation destination.

Safety

SRES

The Real Estate Buyer's Agent Council (REBAC), f. 1988, promotes the superiority of a buyer's representative's skills and services. REBAC's membership is the world's largest organization of real estate professionals concentrating on buyer representation.

SRS

The Seller Representative Specialist (SRS) designation course is the premier credential in seller representation. It is designed to elevate professional standards and enhance personal performance. The designation is awarded to real estate practitioners by the Council of Real Estate Brokerage Managers (CRB) who meet specific educational and practical experience criteria.