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Pricing Strategies: Mastering the CMA
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
05/23/2019 Mainstreet Organization of REALTORS Downers Grove IL Register Online
630-324-8400
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05/24/2019 Champions School of Real Estate Houston West Campus TX Register Online
281-893-4484
05/29/2019 Champions School of Real Estate Dallas TX Register Online
281-893-4484
06/06/2019 South Metro Denver REALTOR® Association Littleton CO Register Online
(303) 797-3700
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06/07/2019 Fayetteville County Board of REALTORS Fayetteville GA Register Online
(770) 461-2401
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06/07/2019 Champions School of Real Estate Houston - North Campus TX Register Online
281-893-4484
06/12/2019 New York Association of REALTORS Nancy Mosca Rochester NY Register Online
(518) 463-0300
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06/12/2019 Louisiana REALTORS Baton Rouge LA Register Online
225.923.2210
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06/13/2019 Scottsdale Area Association of REALTORS Scottsdale AZ Register Online
(480) 945-2651
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06/14/2019 Austin Board of REALTORS Austin TX Register Online
(512) 454-7636
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06/17/2019 Lakeland REALTORS® Robert Gress Lakeland FL Register Online
863-687-6111
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06/18/2019 eXp Realty Stafford VA Register Online
540-379-1949
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06/19/2019 Dynamite Productions Draper UT Register Online
801-380-8900
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06/25/2019 San Diego Association of REALTORS® Virginia Field San Diego CA Register Online
(858) 715-8000
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06/26/2019 Chicago Association of REALTORS® Maurice Hamptom Chicago IL Register Online
312-803-4900
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07/08/2019 Champions School of Real Estate Champions Live! TX Register Online
281-893-4484
07/15/2019 Greater Boston Association of REALTORS Reading MA Register Online
617-423-8700
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07/15/2019 Northern Virginia Association of REALTORS Fairfax VA Register Online
703-207-3200
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07/16/2019 eXp Realty Stafford VA Register Online
540-379-1949
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07/17/2019 Greater Metropolitan Association of REALTORS® Deanna DuRussel Southfield MI Register Online
(248) 478-1700
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07/17/2019 Rhode Island Association of REALTORS Warwick RI Register Online
401-785-9898
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07/18/2019 FREDERICKSBURG AREA ASSOCIATION OF REALTORS Rebecca Straley Fredricksburg VA Register Online
(540) 373-7711
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07/26/2019 Pikes Peak Association of REALTORS Colorado Springs CO Register Online
719-633-7718
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07/26/2019 Punta Gorda, Port Charlotte, New Port Punta Gorda FL Register Online
941-629-8943
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07/31/2019 West Maricopa Association of REALTORS Peoria AZ Register Online
623-931-9294
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08/16/2019 Champions School of Real Estate Houston West Campus TX Register Online
281-893-4484
08/19/2019 Florida REALTORS® Kissimmee FL Register Online
407-438-1400
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08/19/2019 Osceola County Association of REALTORS Kissimmee FL Register Online
407-846-0117
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08/20/2019 eXp Realty Stafford VA Register Online
540-379-1949
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08/21/2019 North Shore Association of REALTORS Beverly MA Register Online
978-232-9410
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08/28/2019 Greater Albuquerque Association of REALTORS Albuquerque NM Register Online
(505) 842-1433
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09/05/2019 Realtors of the Palm Beaches & Greater Fort Lauder Fort Lauderdale FL Register Online
954-567-5032
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09/09/2019 Coldwell Banker School of Real Estate Vienna VA Register Online
800-992-4794
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09/12/2019 Coldwell Banker School of Real Estate Columbia MD Register Online
800-992-4794
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09/16/2019 eXp Realty Stafford VA Register Online
540-379-1949
Send an Email
09/17/2019 Greater Metropolitan Association of REALTORS® Southfield MI Register Online
(248) 478-1700
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09/19/2019 HomeRealty Richard Conley Grand Haven MI Register Online
616-935-9000
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09/23/2019 Huntsville Area Association of REALTORS Joanne Marie Chando Huntsville AL Register Online
256.763.7797
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09/24/2019 Realtor Association of Prince William Mark Worrilow Woodbridge VA Register Online
703-565-0033 ext 206
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09/25/2019 Ohio Association of REALTORS® Marlene Burkhart Cincinnati OH Register Online
614-225-6210
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10/10/2019 Emerald Coast Association of Realtors Fort Walton Beach FL Register Online
850-243 -145
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10/11/2019 Greater Nashville REALTORS® Susan Barnette Nashville TN Register Online
615-254-7516
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10/15/2019 eXp Realty Stafford VA Register Online
540-379-1949
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10/22/2019 MIAMI Association of REALTORS® Jupiter FL Register Online
305-468-7077
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10/23/2019 MIAMI Association of REALTORS® Broward FL Register Online
305-468-7077
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10/24/2019 MIAMI Association of REALTORS® Miami FL Register Online
305-468-7077
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10/25/2019 Chicago Association of REALTORS® Maurice Hamptom Chicago IL Register Online
312-803-4900
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10/29/2019 Orlando Regional Realtor Association Orlando FL Register Online
407-513-7268
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10/30/2019 Springfield Board of REALTORS Medford OR Register Online
541-505-9952
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10/30/2019 Pinellas REALTOR Organization Clearwater FL Register Online
(727) 347-7655
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11/14/2019 New York Association of REALTORS Linda Damico Riverhead` NY Register Online
(518) 463-0300
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11/19/2019 Ohio Association of REALTORS® Alec Hagerty Columbus OH Register Online
614-225-6210
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11/21/2019 Middle Tennessee Association of REALTORS Robert Morris Murfreesboro TN Register Online
615-893-2242
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11/25/2019 Greater Louisville Association of REALTORS Louisville KY Register Online
http://ims.lbr.org
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12/11/2019 Greater Metropolitan Association of REALTORS® Deanna DuRussel Southfield MI Register Online
(248) 478-1700
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12/17/2019 eXp Realty Stafford VA Register Online
540-379-1949
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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.

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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.

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.

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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.

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.

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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.