The Statistical Buyer’s CMA (also known as the One-Click CMA) is an excellent tool to show buyers a quick side-by-side comparison of a few listings they’re interested in. Before you go over this CMA with your client, take a careful look at how some of the columns are calculated. What you find might surprise you.
CMA Column Look Outs
The most important thing to remember is that each column should be viewed independently. When viewing the Sale/List Price, the report is indicating the highest Sale/List Price ratio for the closed listings overall. It is not giving the ratio of the List Price column to the Sold Price column. See the example below:
Explaining the High Sale/List Price
When your client sees this table, they might ask why the High Sale/List Price is 1.00 when the High List Price is 289,000 and the High Sold Price is 282,000. Here are a few key points to help you explain the calculations between these columns:
- The ratio for the highest Sale/List Price is not calculated as 282,000/289,900.
- 289,900 appears in the High List Price column because it’s the highest List Price property in the CMA.
- 282,000 appears in the High Sold Price column because it’s the highest Sold Price property in the CMA.
- The highest List Price and highest Sold Price do not belong to the same listing, and that’s why 1.00 is the highest overall Sale/List Price.
Where Does the Sale/List Price Ratio Come From?
If we return to the individual listing information for closed listings in our example, we see two listings that result in 1.00 as the ratio of Sale/List Price. But as you can see below, neither of these two listings have the highest List Price or Sold Price, which means they won’t appear in the table.
To learn more about CMAs, check out our online course all about the different CMAs in Flexmls.