This course covers how an agent can learn to price properties in a competitive or changing market. The students are introduced to the concepts of appraisal versus a CMA, and the general descriptions of each, as well as the legal obligations that an agent has in Florida with respect to a CMA — when it can be done, what disclaimers apply, etc. With close to 60% of all agents, nationwide, having tenure of less than 5 years in the real estate business, many of them have not experienced what some call a ‘down’ market, and others call a ‘normal’ market.
Students will learn how to read supply and demand in a market, calculate absorption rate and critically evaluate what comparable data is still germane. The goal is to learn how to price property properly, to avoid carrying listings for a long time, and also to not disappoint property owners.
Objectives:
After taking this class students will be able to:
• Define pricing, valuation, appraisals and CMA
• Define the three methods, or approaches, to value.
• How Florida Statute 475.612 relates to valuation reports
• Identify the challenges for pricing properties
• Know how to read a market
• Estimate supply and demand
• Calculate and apply the absorption rate
• Understand that the ‘market’ is actually comprised of several markets in a geographical area
• Understand why some price ranges will always be performing better than others.
• Evaluate the market to value the property.
• How “Day’s on Market” Can Affect Pricing and protect the Consumer by
adhering to Article 1 of the Realtor® Code of Ethics.