The realtor’s guide to creating CMAs
- What is a CMA
- Using Data from Dubai Transactions
- Current Listings on Bayut
- TruEstimate™ and Making your CMA
- FAQs
If you’re a real estate agent, you know that data and numbers are your biggest assets when working with your clients, be it buyers or sellers. One way to truly stand out while presenting your data is by using a CMA, or comparative market analysis. It’s also a valuable tool for determining the fair market value of a property. Let’s dive into helping you understand a CMA and how you can create one, with all the handy tools we have on Bayut.
What is a Comparative Market Analysis (CMA)
A Comparative Market Analysis, commonly called a CMA, is a tool used by agents to arrive at a property’s value. This is done by comparing the recent sales prices of similar units (called comps) from the past six months and coming up with a listing price for your client’s unit. Keep in mind that when choosing comps in CMA, they should have the same number of bedrooms, bathrooms and renovations as your client’s unit – and you should note any differences.
Since the market continuously fluctuates, it’s always best to have as many of the latest transactions as possible. We recommend using transactions from the same quarter to be on the safe side.
Now, let’s discuss how you can make your CMA using Bayut’s features.
Compiling data with Dubai Transactions – real estate CMA steps
Your first step is to understand your client’s property – its floor, number of bedrooms and bathrooms, renovations and other features that can impact its price.
Start with Bayut’s Dubai Transactions, which uses DLD’s data to pinpoint the last sold transactions in Dubai. Using filters, you can search for transactions in your specific area or building, further refining the search based on purpose, number of beds and built-up area.
Look at current listings on Bayut
Now it’s time to look at all the current listings on Bayut to understand the current market price. Reviewing current listings provides insight into the competition and demand in the market, helping you determine whether you need enhancements like Signature or Hot listings to attract attention.
Another excellent resource for examining the current market’s performance is Market Trends on Profolio™. This shows you the most popular areas, bed types and ROI’s.
Using TruEstimate™ and creating your CMA
Once you have all your data and insights, you can compile them into your CMA. You can follow Bayut Academy’s CMA template, which is divided into three parts:
- Your property’s details, such as its date of purchase, number of bedrooms and bathrooms, area, purchase price, type and renovations.
- Recently sold properties, with last sold transaction data from Dubai Transactions.
- Your current competitors, with active listings on Bayut.
The Sale Price (marked in yellow) is the price you plan to list your client’s property. You can use TruEstimate™, our data-powered home valuation tool, to determine this price.
To use TruEstimate™, enter your client’s property’s name and its unit number (on the title deed)
You will then be prompted to share the number of bedrooms, mortgage status, property view, upgrades and furnishing status. Following this, you will receive a TruEstimate report, which offers an estimated price, rental yield, property history, and similar properties that have been sold and listed. Download this report and add the estimated price to your Comparative Market Analysis (CMA). And your CMA is done!
FAQs about Comparative Market Analysis (CMA) and more
Apart from a Comparative Market Analysis (CMA), what additional tools can I use to enhance my real estate client experience?
We recommend creating a listing presentation to make a better impression on your clients. This is a presentation showcasing your agency’s successes, techniques, and tools, as well as your plans for advertising listings. Having a listing presentation can create client confidence and build trust as you take your professionalism to the next level.
What tools, like Bayut’s TruEstimate™, can enhance the accuracy of a CMA?
Using Dubai Transactions and Market Trends can bring credibility and authenticity to your CMA. Both resources use data from the DLD and Bayut’s search data, respectively – sources that can be trusted.
How does working with an experienced agent improve the reliability of your CMA?
An experienced agent is knowledgeable about an area, the market’s performance, and how to improve a property’s value through renovations, as they tend to be aware of the most popular demands. This can be useful when trying to increase a property’s value on the market.
Providing effective customer service, armed with a comprehensive marketing analysis (CMA), can open doors to lead conversions and future referrals. Find out more innovative tips on excelling your customer service skills by joining our workshops at Bayut Academy, our in-house training for agencies registered with Bayut.
Stayed tuned to MyBayut, the region’s biggest property blog, for more real estate stories and news.
