1. The CMV System “Competitive Market Value (CMV)” Pricing (Optional) XpertCMA 6.0 Software Works for everyone regardless of your methods or system; however, XpertCMA and its Real Estate Professional Staff have designed and recommend the “Competitive Market Value” Pricing system described here and in the book.XpertCMA 6.0 Software Works for everyone regardless of your methods or system; however, XpertCMA and its Real Estate Professional Staff have designed and recommend the “Competitive Market Value” Pricing system described here and in the book. This System is a Departure from the traditional and historical CMA methods used by most real estate professionals today.This System is a Departure from the traditional and historical CMA methods used by most real estate professionals today. Accept or Reject all or any parts of this Pricing System or improve your current method – it is a win-win scenario for you.Accept or Reject all or any parts of this Pricing System or improve your current method – it is a win-win scenario for you. NextNext

2. The CMV System Questions & Answers What is Competitive Market Value?What is Competitive Market Value? Locating the CompetitionLocating the Competition Price vs. Value, Seller vs. BuyerPrice vs. Value, Seller vs. Buyer Identifying the FactorsIdentifying the Factors Quantifying the DifferencesQuantifying the Differences $Weighting the Factors$Weighting the Factors Choosing the Pricing StrategyChoosing the Pricing Strategy Solving the PuzzleSolving the Puzzle The Real Estate ProfessionalThe Real Estate Professional NextNext

3. The CMV System What is Competitive Market Value? Chapter 1 The Competitive Market Value of any product is it’s Value vs. the Price of it’s competition, adjusted for differences.The Competitive Market Value of any product is it’s Value vs. the Price of it’s competition, adjusted for differences. The Competitive Market Value of a “Subject Property” can be calculated vs. each competitor by determining and adjusting for all factors that affect market value.The Competitive Market Value of a “Subject Property” can be calculated vs. each competitor by determining and adjusting for all factors that affect market value. Example: If a condo is offered for sale at a price of $100,000 (none lower), then the Competitive Market Value of all other identical condos is $100,000. Pricing higher is over pricing. Pricing lower is under pricing.Example: If a condo is offered for sale at a price of $100,000 (none lower), then the Competitive Market Value of all other identical condos is $100,000. Pricing higher is over pricing. Pricing lower is under pricing. Price and Value are two different thingsPrice and Value are two different things NextNext

4. The CMV System Locating the Competition Chapter 5 The “Competition” includes all of the alternative properties “For Sale” in ‘Today’s Market in the “Buyer’s Shopping Area.”The “Competition” includes all of the alternative properties “For Sale” in ‘Today’s Market in the “Buyer’s Shopping Area.” Properties that have “SOLD” are not part of the “active” market, not competition and not what the buyer’s are inspecting and evaluating – Not Part of Today’s market.Properties that have “SOLD” are not part of the “active” market, not competition and not what the buyer’s are inspecting and evaluating – Not Part of Today’s market. Competitive Pricing means the price of the subject property reflects a value equal to or better than it’s competitors, adjusted for differences. The competition is therefore over priced by comparison.Competitive Pricing means the price of the subject property reflects a value equal to or better than it’s competitors, adjusted for differences. The competition is therefore over priced by comparison. NextNext

5. The CMV System Price & Value Chapter 4 Seller & Buyer Chapter 1 The Asking Price may over or under the Competitive Market Value.The Asking Price may over or under the Competitive Market Value. The Seller wants the Price.The Seller wants the Price. The Buyer wants the Value (for the Price) and makes that determination during property inspection.The Buyer wants the Value (for the Price) and makes that determination during property inspection. When the Sales Price equals the Value, both are happy and so is the appraiser and the Mortgage Company.When the Sales Price equals the Value, both are happy and so is the appraiser and the Mortgage Company. NextNext

6. The CMV System Identifying the Factors Chapter 6 All Factors that affect market value must be identified and adjusted in order make a valid comparison of one property to another. This is what all CMA programs and appraisals should do.All Factors that affect market value must be identified and adjusted in order make a valid comparison of one property to another. This is what all CMA programs and appraisals should do. Objective Factors such as Sq. Ft., Bedrooms, Baths, Acreage, etc. are easy to identify, quantify and adjust using various methods.Objective Factors such as Sq. Ft., Bedrooms, Baths, Acreage, etc. are easy to identify, quantify and adjust using various methods. Subjective Factors such as Location, Condition, Quality, Views, etc. can be equally or more important than the objective factors. Without a logical method to quantify the effect of these factors on market value, there is a missing link in the process which can invalidate the conclusions.Subjective Factors such as Location, Condition, Quality, Views, etc. can be equally or more important than the objective factors. Without a logical method to quantify the effect of these factors on market value, there is a missing link in the process which can invalidate the conclusions. NextNext

7. The CMV System Adjusting for Differences Chapter 7 Objective Factors are already quantified and becomes a math problem. Simply subtract one number from the other, multiply by a $Weight and get the $ Adjustment that reflects the $Value between the properties.Objective Factors are already quantified and becomes a math problem. Simply subtract one number from the other, multiply by a $Weight and get the $ Adjustment that reflects the $Value between the properties. Subjective Factors must also be quantified and adjusted or a valid comparison is not possible.Subjective Factors must also be quantified and adjusted or a valid comparison is not possible. The XpertCMA Rating/Weighting System to adjust for Subjective Factors is our solution. The factor is quantified by a judgment by any individual by rating their feelings on a scale of 0-10, 10 being best. Buyers love to do this and it helps them get a better feel for the relative value to them of any subjective factor. The $Weight and adjustment is possible from that point.The XpertCMA Rating/Weighting System to adjust for Subjective Factors is our solution. The factor is quantified by a judgment by any individual by rating their feelings on a scale of 0-10, 10 being best. Buyers love to do this and it helps them get a better feel for the relative value to them of any subjective factor. The $Weight and adjustment is possible from that point. NextNext

8. The CMV System $Weighting the Factors Chapter 7 The Good News is that the closer the comp is to the subject property, the less of an adjustment is necessary to make them comparable. The actual $Weight chosen by the user has less impact.The Good News is that the closer the comp is to the subject property, the less of an adjustment is necessary to make them comparable. The actual $Weight chosen by the user has less impact. The Bad News is that if you can’t decide on what is right or logical, then don’t try to draw conclusions from any system. Take an educated guess.The Bad News is that if you can’t decide on what is right or logical, then don’t try to draw conclusions from any system. Take an educated guess. XpertCMA’s Solution – the economic principles of Marginal Utility, Marginal Value and Diminishing Returns appear to apply well to establish $Weights – Page 61.XpertCMA’s Solution – the economic principles of Marginal Utility, Marginal Value and Diminishing Returns appear to apply well to establish $Weights – Page 61. An Exact Science – Certainly not but better than an educated, wild or no guess.An Exact Science – Certainly not but better than an educated, wild or no guess. NextNext

9. The CMV System Choosing A Pricing Strategy Chapter 9 The Wrong ChoicesThe Wrong Choices –1. Price Higher than Competitive Market Value (Over Priced) –2. Price Lower than Competitive Market Value (Under Priced) –3. Price from an Average (Both Over and Under Priced) –4. Having or Making No Choice (Who Knows?) The Right Choice - Price Equal to or Lower than the Lowest Competitive Market Value LCMV). What’s in your system?The Right Choice - Price Equal to or Lower than the Lowest Competitive Market Value LCMV). What’s in your system? NextNext

10. The CMV System Solving the Puzzle Chapter 8 XpertCMA Precision Pricing System Solves the Puzzle and will always reflect your opinion, because you have control over all of the variables.XpertCMA Precision Pricing System Solves the Puzzle and will always reflect your opinion, because you have control over all of the variables. Rate Your System? Does it identify and adjust for subjective factors? Can you adjust the $Weights? Do you have a choice to price with the lowest competitive value, the average or a manual selection, or is the choice already made for you? Can you explain the results and do they always reflect your opinion?Rate Your System? Does it identify and adjust for subjective factors? Can you adjust the $Weights? Do you have a choice to price with the lowest competitive value, the average or a manual selection, or is the choice already made for you? Can you explain the results and do they always reflect your opinion? Adopt it or Not is your decision. If it helps you to be more educated and professional, then we have succeeded.Adopt it or Not is your decision. If it helps you to be more educated and professional, then we have succeeded. NextNext

11. The CMV System Being Professional Chapter 10 Professionals Answer the QuestionsProfessionals Answer the Questions –Deliver the Answer – “The Competitive Market Value of your Property is …” and “it should be Priced at $... to be competitive in today’s market. The Property Speaks for Itself regardless of anyone’s opinion.The Property Speaks for Itself regardless of anyone’s opinion. Most Sellers, Buyers and Real Estate Professionals understand and relate to the term “Competitive.”Most Sellers, Buyers and Real Estate Professionals understand and relate to the term “Competitive.” XpertCMA Products are designed to reduce the guess work in valuing and pricing real estate and the Staff is available to help all users.XpertCMA Products are designed to reduce the guess work in valuing and pricing real estate and the Staff is available to help all users. Return to Start ExitReturn to Start ExitReturn to StartReturn to Start