Competitive market analyses (CMAs) have been around for decades. Although commercial real estate usually relies on price-per-square-foot evaluations, residential real estate has been slower to adopt this approach for a variety of reasons. Regardless of whether you use price per square foot or some other system of evaluation, the single-family CMA of today is about to change forever. In January, I wrote an article called, "The days of bedroom, bath and price are dead." The article outlined how the data analytics revolution is reshaping the buyer decision-making process from being focused on bedroom, bath and price to a new focus on lifestyle, affordability and commute time. As data analytics companies proliferate and their algorithms become more sophisticated, buyers will be ab...
- The focus for homebuyers has shifted from bedroom bath, and price to lifestyle, affordability and commute time.
- Agents will use data analytics to augment their personal feature and lifestyle expertise in the future.
- Companies are already working on creating algorithms that will calculate the true cost of overall homeownership including the age of the home's features.