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 able to search properties by the variables they rank as most important rather than being limited to a fixed format as they are today. For example, a buyer might search using variables such as total m...
- 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.