The CMV System “Competitive Market Value (CMV)” Pricing (Optional)

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

2. What is Competitive Market Value? Locating the Competition Price vs. Value, Seller vs. Buyer Identifying the Factors Quantifying the Differences $Weighting the Factors Choosing the Pricing Strategy Solving the Puzzle The Real Estate Professional Next The CMV SystemQuestions & Answers

3. The Competitive Market Valueof any product is it’s Value vs. the Price of it’scompetition, 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. 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 Valueare two different things Next The CMV SystemWhat is Competitive Market Value?Chapter 1

4. 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. Competitive Pricingmeans 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. Next The CMV SystemLocating the CompetitionChapter 5

5. The AskingPrice may over or under the Competitive MarketValue. TheSellerwants the Price. TheBuyerwants the Value (for the Price) and makes that determination during property inspection. Whenthe Sales Price equals the Value, both are happy and so is the appraiser and the Mortgage Company. Next The CMV SystemPrice &ValueChapter 4Seller & BuyerChapter 1

6. All Factorsthat 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 Factorssuch as Sq. Ft., Bedrooms, Baths, Acreage, etc. are easy to identify, quantifyand adjust using various methods. Subjective Factorssuch 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. Next The CMV SystemIdentifying the FactorsChapter 6

7. Objective Factorsare 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 Factorsmust 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. Next The CMV SystemAdjusting for DifferencesChapter 7

8. The Good Newsis 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 Newsis 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 Returnsappear to apply well to establish $Weights – Page 61. An Exact Science – Certainly not but better than an educated, wild or no guess. Next The CMV System$Weighting the FactorsChapter 7

9. The 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? Next The CMV SystemChoosing A Pricing StrategyChapter 9

10. XpertCMA Precision Pricing System Solves the Puzzleand 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? Adopt it or Notis your decision. If it helps you to be more educated and professional, then we have succeeded. Next The CMV SystemSolving the PuzzleChapter 8

11. Professionals 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 Speaksfor Itself regardless of anyone’s opinion. Most Sellers, Buyers and Real Estate Professionals understand and relate to the term “Competitive.” XpertCMA Products are designedto reduce the guess work in valuing and pricing real estate and the Staff is available to help all users. Return to Start Exit The CMV SystemBeing ProfessionalChapter 10