Picking the Best Comparative Market Analysis Tool

“Determine the worth of a house and you unlock the key to effective real estate selling.” And we’re not talkin’ Zestimates here.

This statement, while seemingly straightforward, actually pulls on a very real problem: the value of a property is subjective and is ever-changing.

But the Comparative Market Analysis (CMA) allows agents to have a conversation with sellers about accurate pricing and competitive positioning in the market. This is why a Comparative Market Analysis tool is a necessity for sellers agents that sits at the core of their listing presentation.

Modern advancements have revolutionized the traditional CMA process, enhancing convenience, accuracy, and efficiency for real estate agents and their clients. We’ll cover this in extremely nerdy detail below but here is a table of contents if you want to jump to a specific topic:

• What is a Comparative Market Analysis?
• What is a Comparative Market Analysis Tool?
• What are the Best Comparative Market Analysis Tools?
• How do Comparative Market Analysis Tools work?
• Most important features for a Comparative Market Analysis Tool
• The Best CMA Delivery Services

What is a Comparative Market Analysis?

The Comparative Market Analysis (CMA) is a method that real estate agents utilize to estimate the market value of a property. A reliable comparative market analysis tool harnesses the power of data from similar, recently sold properties (often referred to as ‘comps’) and uncovers prevailing market trends. It is driven by a systematic approach that allows agents and their clients to understand a property’s potential price based on past sales and adjustments.

The CMA works on the principle of comparison. The CMA compares properties that are alike in a multitude of factors – location, square footage, age, style, and other specific features. In the real estate sphere where every property has a unique story to tell (and usually the seller believes in a very valuable story! , the role of a comparative market analysis tool is to decode those stories into a language of numbers. Crucially, it’s similar to how appraisers will evaluate a property during a sale…which is a big part of the pricing conversation with sellers (since the bank relies on appraisers before funding a buyers loan).

What is a Comparative Market Analysis Tool?

A comparative market analysis tool is software that presents a property’s value (via a comparative market analysis) in an engaging, easily digestible format. Part of the presentation includes the methodology for arriving at the property’s value which includes showing recent sales (comps), a general market trends analysis and more. In a dynamic local housing market, having the accuracy and efficiency of a comparative market analysis tool can add significant value to how real estate agents engage seller prospects.

What are the Best Comparative Market Analysis Tools

Here’s a list of the most popular CMA tools on the market. Some are standalone solutions that agents can add to their tech stack and others are bundled within larger platforms.

1. Cloud CMA: Cloud CMA is a real estate CMA software designed to help agents build comprehensive Comparative Market Analysis reports and interactive presentations. It offers a “Live” view for online meetings, integrating live data from MLS, and features like Telestrator Marker for enhanced interaction. Cloud CMA supports both print and digital formats, ensuring versatility in presentation and client interaction. The tool is optimized for various smart devices, providing a seamless experience across different screens.
2. DashCMA: DashCMA is part of CORE Present, a next-generation CMA and presentation builder integrated within the kvCORE platform (so it’s not a standalone CMA solution). It offers a unique big-picture pricing view, combining over 20 pricing perspectives in one complete view, allowing real estate professionals to guide clients through an interactive and compelling pricing discussion. CORE Present facilitates creating engaging CMAs in under a minute and fully branded, customized presentations with real-time activity tracking. The tool is designed to be modern, intuitive, and versatile, allowing presentations to be delivered live, digitally, or in print.
3. MoxiPresent: MoxiPresent is a comprehensive real estate tool that offers agents the ability to create detailed Comparative Market Analysis (CMA) reports. It’s often bundled with the other solutions offered by MoxiWorks platform of real estate agent solutions. It integrates various data points and market trends to aid agents in making informed pricing recommendations. The platform is known for its user-friendly interface and its ability to create engaging, visually appealing presentations for both buyers and sellers.
4. ToolkitCMA: ToolkitCMA is a cloud-based real estate CMA software that offers agents the ability to create branded CMA reports, property tours, and flyers. It interfaces with hundreds of MLS systems, allowing for easy data and photo integration into presentations. The software is designed for ease of use, suitable for both computer-savvy agents and those requiring additional training. ToolkitCMA provides customization options for presentations and offers both individual and group training sessions to ensure effective use of the software.
5. FlashCMA: FlashCMA is a real estate CMA program known for providing accurate and quick CMA reports. It generates emailable and interactive reports in PDF format. The tool stands out for its speed and affordability, offering accurate CMA reports with automatic adjustments in seconds. This feature-rich software is designed to enhance the efficiency and accuracy of real estate agents’ CMA processes.
6. Focus 1st: Focus 1st is a real estate pricing software that stands out for its approach to property valuation by considering timing, momentum, and competition. It’s designed by real estate agents and goes beyond the comparative method by factoring in real purchasing factors. The software includes powerful graphs, a resource library, and educational materials to support agents. It operates in a Microsoft Excel 365 environment and supports over 600 MLS areas.
7. NAR RPR: NAR RPR’s CMA tool, designed for REALTORS®, assists in accurately pricing properties by analyzing comparable properties (comps) in the same area with similar features. The process includes confirming property facts, selecting comps, making adjustments, and creating a Seller’s Report. It leverages the Realtor Valuation Model® (RVM®), which utilizes multiple Automated Valuation Models and a 5-star Confidence Score to estimate property value. The CMA wizard guides through steps like confirming property facts, searching for and selecting comparable properties, and making necessary adjustments, culminating in a comprehensive valuation report.
8. Lofty Dynamic CMA: Lofty (fka Chime) has a powerful CMA tool that’s bundled into the Lofty platform (so it’s not a standalone offering). Like the other solutions, their CMA technology is aimed at aiding agents, teams, and brokers in generating market analysis reports. It integrates real-time MLS data for accurate property valuations and includes an Intelligent Pricing feature to assist in listing strategies. This tool is fully integrated with Lofty’s CRM system, enhancing lead matching and prioritization. It offers unlimited, personalized, and branded report creation, along with seller lead suggestions and prebuilt templates for efficient lead engagement.
9. Homesnap: A robust real estate platform that includes a powerful CMA builder integrating seamlessly with MLS data. It offers customizable templates and automated data import, designed to simplify the creation and presentation of Comparative Market Analyses. The user-friendly interface enhances efficiency in managing listings and engaging with clients.
10. iCMALive – This nationwide, cloud-based CMA tool offers lead capture, built-in and automated widgets and chat boxes, live MLS connection, and customized CMA reports that take into account current real estate market insights to provide a highly accurate fair market value for the subject property. Interactive reports can be integrated with your Customer Management System (CMS) and delivered online. Pricing starts at $10 a month, with a 15-day free trial.
11. MagicCMA: a unique CMA tool that automates the process of sending personalized CMA reports via USPS mail to targeted real estate farms. It integrates with CloudCMA to provide handwritten letters and envelopes for a personal touch, enhancing recipient engagement. The tool also includes email follow-ups, demographic targeting for mailings, and provides daily reports on mail recipients. This service is designed to generate seller leads effectively without additional software needs.

How do comparative market analysis tools work?

Here’s a video that walks through exactly how to perform a CMA Analysis using listings from the MLS and the NAR RPR tool.

Keep in mind that all Comparative Market Analysis tools work differently, but the basic approach here should port well into any of the CMA tools mentioned above.

Most important features for a Comparative Market Analysis Tool

Manually creating CMAs can be time-consuming and labor-intensive. Comparative Market Analysis software tools offers several advantages:

• Time Savings: Software automates much of the research and data compilation.
• Accuracy: Access to comprehensive MLS data and automated valuation tools ensures more reliable results.
• Professional Presentations: Software generates visually appealing reports with charts, graphs, and customizable branding.
• Efficiency: Streamlines the process, allowing agents to serve more clients effectively.

Depending on your needs, the ideal CMA tool might need different features. In our research though these were the most important features for agents:

• integration with MLS Data
• detailed market trends analysis that considers factors like timing and competition
• quick report generation
• interactive presentation capabilities across different formats and mediums
• branding and customization options in presentations

Data quality is far and away the most important factor when it comes to making a Comparative Market Analysis Tool valuable. Accurate market information (especially real-time updates) is critical for agents to have a credible property value discussion with prospective sellers.

The Best Mailer and Postcard Services for CMA Engagement

The recommended approach to offering a CMA is mailing directly to the prospect. The targeting is perfect since the CMA would focus on the property you’re sending the mailer to. This is why CMAs are such a big part of geo-farming. Plus a physical asset usually leaves a bit more brand recognition for the agent which never hurts!

Here are the top rated delivery services when offering a CMA:

1. Am Cards: This service offers customizable postcards and mailers that can be used for various purposes, including sending CMAs. They provide a Pay As You Go plan where cards cost $3.82 each plus postage. Alternatively, they have a membership option at $39/month after an initial one-time payment of $199, which offers over 50% savings on card costs and includes features like drip campaigns and the ability to customize the back of the card. For more comprehensive needs, their ProPackage includes additional features like a 3-year post-sale greeting card campaign and client birthday and business anniversary campaigns, priced at a one-time fee of $495, then $39/month.
2. MailerLite: MailerLite is primarily an email marketing tool but also offers solutions for direct mail postcards (which many agents utilize for CMAs). This service allows you to design and send customized postcards globally as part of your broader marketing campaigns. The integration with their digital marketing platform can be especially useful for tracking the effectiveness of your mail campaigns in conjunction with email and other marketing channels.
3. SmartZip: SmartZip offers targeted direct mail services including sending CMAs as part of its predictive analytics platform, which is geared towards real estate professionals looking to optimize their outreach. Their approach uses data analytics to predict which homes are most likely to sell in any given area, allowing real estate agents to better target their mailing efforts.

Assuming your CMA campaigns start generating engagement you’ll need to plan the follow up to move prospects closer to eventually listing with you. Here are some CMA follow up approaches to consider.:

• Initial Follow-up: Soon after delivering the CMA, send a personalized thank you message. This could be via email or a handwritten note, acknowledging their interest and the opportunity to provide them with the analysis. Offer to discuss the CMA in detail. You can do this through a scheduled phone call, video chat, or an in-person meeting, whichever the client prefers. This discussion should focus on clarifying any points in the report, answering questions, and assessing the client’s needs further.
• Provide Additional Value:
  • Market Updates: Keep the prospect updated with any significant changes in the market that might affect their property’s value. This can be done through follow-up emails or a newsletter tailored to their specific area or property type.
  • Educational Content: Share blog posts, videos, and other resources that help them understand the real estate market better. Topics might include tips on improving home value, insights into real estate trends, or advice on when might be a good time to sell.
• Use Soft Touchpoints:
  • Social Media Engagement: Engage with them on social media platforms by sharing relevant content, responding to their comments, or featuring community events. This helps keep your relationship active without direct selling pressure.
  • Invitations: Invite them to open houses, webinars, or community events you host, providing opportunities to engage face-to-face or virtually in a low-pressure environment.
• Regular Follow-up: Establish a routine (e.g., monthly or quarterly) to check in with the prospect. This can be a brief call or email just to stay in touch and remind them of your availability to assist further.

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Conducting a successful listing presentation involves several phases but the part that most sellers are focused on is “the number” aka “how much is my home worth?”. The Comparative Market Analysis (CMA) is an important tool to offer an accurate, reliable, and transparent view of a property’s worth.

Wielding a comparative market analysis tool like the ones discussed above can provide rich insights into this crucial phase of the seller conversation…and can win more listings.

And because these tools automate the research and analysis, they can save a lot of time (not to mention reduce human error).

When the stakes are high, a well-crafted Comparative Market Analysis can really help attract more sellers and win more listing presentations.

Frequently Asked Questions

Why is a Comparative Market Analysis (CMA) important for sellers?

For sellers, a CMA is crucial to set a competitive asking price. Overpricing can lead to a property sitting on the market for too long, while underpricing could result in leaving money on the table. An accurate CMA helps sellers understand what buyers are willing to pay in the current market.

Why is a Comparative Market Analysis important for buyers?

For buyers, a CMA helps determine a fair offer price. It provides insight into the market value of similar properties, preventing overpaying in a competitive market. This is particularly important for buyers considering multiple properties.

What are some key factors considered in a CMA calculation?

Several factors are critical in a CMA, including:

• Location: Properties in desirable neighborhoods or with specific location advantages typically command higher prices.
• Square Footage: Larger homes generally sell for more, with price per square foot often used for comparison.
• Bedrooms and Bathrooms: The number of bedrooms and bathrooms significantly impacts a property’s value.
• Amenities: Features like fireplaces, updated kitchens, finished basements, pools, and garages influence value.
• Condition: Well-maintained, updated homes generally fetch higher prices than those needing repairs.
• Market Trends: Current market conditions, such as inventory levels and buyer demand, impact property values.

How does an agent select good comps for a CMA?

Choosing the right comps is vital for an accurate CMA. Agents prioritize recent sales (within the past six months to a year) and homes with similar characteristics:

• Location: Comps ideally come from the same neighborhood.
• Style and Size: Comparable properties should have similar square footage, number of bedrooms and bathrooms, and overall style.
• Condition: Comps should have a similar level of updates and overall condition to the subject property.
• Days on Market: Low days on market for comps can indicate a competitive market.
• List Price to Sales Price Ratio: Comps with ratios close to 100% indicate accurate pricing strategies.

What are price brackets, and why are they important?

Price brackets represent ranges within which buyers search for homes online. Understanding these brackets is crucial for setting a price that attracts the right audience. For example, buyers searching between $300,000 and $350,000 are unlikely to consider homes listed above $350,000.

What other market factors can affect a property’s value?

Beyond the core CMA components, additional market factors play a role:

• Interest Rates: Lower interest rates often lead to increased buyer demand and higher property values.
• Economic Conditions: Overall economic health and job market stability can influence property values.
• Seasonal Trends: Real estate markets often experience seasonal fluctuations, with spring and summer typically being more active.
• Local Development: New developments or changes in zoning regulations can impact property values.