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Comparative Market Analysis Report – Why it is essential in today’s market!

April 12, 2017 Latest News

If you have practiced real estate in Western markets you are very familiar with a Comparative Market Analysis (CMA) report as this is a tool that is used daily by agents. Up until recently, agent real estate solutions, such as CMA reports, have not been offered in the UAE. However, now that the solutions are available in the market, how important is it really to use such reports?

Well, let’s start with the basic question, what exactly is a CMA?  A CMA is a comprehensive report put together by a real estate agent to present to a seller. A CMA report is specifically tailored to the subject property and area. The purpose of a CMA is to show the seller statistically how much their property should be listed for on the market.

So what is included in a CMA report? First you have your cover letter giving a brief overview to the seller what they are about to read. Next are the subject property details, photos and brief description highlighting the property’s selling features such as facing the park, upgraded appliances, etc. Following is the ‘meat and potatoes’ of the report which shows recently sold properties from the Dubai Land Department and currently listed properties on the market that match the seller’s property. Finally, to end the CMA, there are a few statistical reports related to the area and property type of the subject property.

So why is a CMA report  so valuable and essential in today’s market? Because, as we say back home, proof is in the pudding!

I am sure you ever been in the position when an over confident seller says he wants to list his property for AED 4 Million however you, as an experienced agent, knows that it is in fact worth about AED 3.2 Million. How can you convince the seller otherwise? Sure, you might have some great reasoning skills, fully aware of what is happening in the market and can quote some solid statistics; but in the end it’s all hearsay to the seller. The seller has heard the same type of speech, but in various forms, and probably with different perspectives from 10 other agents.  A seller has no choice but to believe his own perception.

A CMA report solves this problem as, not only are you showing the seller proof as to why their home should be listed for a certain amount, but you are also educating the seller of recent and current activity, as well as, the current market trend in their area.

“Strategically priced listings are how you will survive in this current market.”

So the next time you are on a listing appointment and your seller says their property is worth much more than the market price, just hand them the CMA report and observe how differently the appointment transpires.