Two Document Types — Joe's Distinction

Market Activity Report

  • Area-based — everything within a subdivision or geographic boundary
  • Shows volume, trends, pricing patterns
  • Not filtered by property characteristics
  • Purpose: snapshot of what's happening in an area
  • Two-view delivery: immediate area + radius-based view from video

Comparable Market Analysis (CMA)

  • Property-based — specific addresses matching the subject
  • Appraisal methodology (USPAP-aligned): sqft, lot, age, baths, amenities, mechanicals
  • $/sqft as primary valuation metric from video
  • Purpose: determine market value via like-for-like comparison
Key distinction: Market Activity = area-based (everything in the boundary). CMA = property-based (specific addresses matching subject characteristics). One shows context, the other determines value.

Terminology (Locked)

CMA = evaluation (buyer OR seller) Leasing = tenant-landlord Net Sheet = estimated proceeds/costs Mechanicals = HVAC, plumbing, electrical, roof, water heater, foundation Quick CMA = HAR Matrix generated PDF CMA Snap = AI predictive valuation tool Geo Market Area = MLS geographic boundary $/sqft = dollar per square foot Price Banding = comp narrowing methodology

When to Use Which

ScenarioDocumentWhy
Listing presentation (seller)CMA + Market Activity (two-view)CMA for value, Market Activity for area context
Buyer consultationCMAProperty-specific value check
Relocation client (BGRS)CMA (BGRS template)Standardized format required by relocation company
Investor analysisMarket Activity + CMA + 60% ruleArea trends plus subject value with renovation discount
Rental/lease pricingMarket Activity (rental)Area-based rental rates, comparable lease terms
Annual equity reviewCMAUpdated valuation for wealth tracking
Past client touchpointMarket Activity (two-view)Area awareness, not a precise valuation

CMA Pipeline — Joe's Process (from Recorded Walkthroughs)

From the 121-step listing SOP plus Joe's on-camera process in 126 recorded video walkthroughs:

  1. Property Research — HCAD/CAD lookup for tax value, sqft, lot size, year built; compare assessed value to market value Automatable
  2. Create CMA Search Criteria — In HAR Matrix: set sqft range, lot size, bath count, geo market area or subdivision; account for MLS spelling variations Manual (MLS login) from video
  3. Comp Search & Iteration — Iterate criteria until the stopping condition is met: at least 3 solds with sold-price variance no greater than 20% across all comps; default to 6-month lookback Partially automatable
  4. Calculate $/sqft — Average $/sqft from sold comps; multiply by subject sqft to derive estimated value; compare to list prices of actives Automatable from video
  5. Save MLS Search — Save as CMA/GMA/subdivision/Client# Manual
  6. Generate Quick CMA PDF — Actions > Quick CMA > All > Save PDF; highlight most likely value Manual (MLS)
  7. CMA Snap AI Report — (Optional) Run the AI predictive valuation for a "bank perspective" comparison point Semi-auto from video
  8. ShowingSmart Reports — Two reports: (a) Activity on Comparables (who is showing competing listings) and (b) Target Market Analysis (price points, absorption) Semi-auto from video
  9. Net Sheet Calculation — Estimated sale price from CMA, standard costs ($495 compliance; optional closing costs as applicable) Automatable
  10. Compile Packet — CMA PDF(s), net sheet, ShowingSmart reports, Realist PDF, CAD PDF, search iteration PDFs Automatable (assembly)
  11. Personalized Video Delivery — Record a screen-share video walking through the specific results, then email with compiled packet Manual (video recording) from video

Joe's Query Construction in HAR Matrix from video

How Joe actually builds MLS queries, captured from his recorded screen-share walkthroughs:

  1. Start with subject facts: sqft, lot size, bed count, bath count, year built (from HCAD/CAD)
  2. Set geo market area or subdivision name as the geographic boundary
  3. Set sqft range: center on subject sqft (e.g., "2500 to 3000" or "less than 3500")
  4. Set lot size if relevant — "lot size has value," especially for larger lots
  5. Set bath filter: "3+ baths" or "3+ full baths, 1+ half baths" — baths add value
  6. Account for spelling variations: "Trail" vs "TRL" vs "Tr" — "in database world, it matters"
  7. If too narrow: remove lot size first, then widen sqft range
  8. If too broad: add stories filter, pool filter, or tighten sqft

Valuation Criteria Hierarchy

Joe uses an appraisal-adjacent approach (USPAP-aligned). Criteria are tiered by importance:

Primary (Required)

  • Square footage (building AND lot)
  • Age / year built
  • Bath count (full AND half) — baths are a key value driver from video
  • Sold within 6 months (default) + active competing listings from video
  • Geo market area or subdivision

Secondary (Mechanicals)

All major systems typically found on an inspection report:

H
HVACHeating/cooling system age, type, condition
P
PlumbingMaterial (copper, PEX, galvanized); condition
E
ElectricalPanel age, amperage, wiring type
R
RoofMaterial, age, remaining life estimate
W
Water HeaterAge, type (tank vs tankless), capacity
F
FoundationType (slab, pier-and-beam); condition, repairs

Tertiary (Amenities)

  • Pool / no pool
  • Flooring type (hardwood, tile, carpet, LVP)
  • Countertops (granite, quartz, laminate, butcher block)
  • Garage (attached/detached, 1-car/2-car/3-car)
  • Number of stories from video

Key Valuation Rules from Joe's Recorded Process

6-Month Lookback Rule from video

"Typically, we only go back six months because if you go back a year, it's actually 18 months of window because the ones that have sold a year ago, we're really looking at the market six months prior to it." — Joe (Caper Shores walkthrough)

Default to 6-month lookback for sold comps. Extend to 12 months only if insufficient comps exist in the 6-month window, and note that 12 months actually represents an 18-month market window.

Dollar-Per-Square-Foot ($/sqft) Methodology from video

Joe consistently communicates value using $/sqft:

  1. Calculate average $/sqft from sold comps
  2. Multiply by subject sqft to derive estimated value
  3. Compare subject $/sqft to comp average to assess over/under pricing
  4. Track $/sqft trends over time (e.g., average rose $20K as pendings closed)

Fixer/Investor 60% Rule from video

"For properties that need a bunch of work, it's about 60 cents on the dollar." — Joe (1801 Coe walkthrough)

Properties needing full renovation: average comp value multiplied by 0.6. Can push slightly higher if some items are already updated.

Active/Pending/Sold Balance from video

Joe compares counts across all three statuses to assess market conditions: high actives vs low solds = buyer's market; low actives vs high pendings = seller's market.

Tax Assessment vs Market Value from video

Always pull assessed value from the county appraisal district and compare to the CMA-derived market value. Assessed value is often below market value — use this as a client talking point.

Comp Selection Stopping Condition

Iterate search criteria adjustments until:
1. Minimum 3 sold comps found
2. Sold-price variance across all comps is no greater than 20%
3. Comps are geographically relevant (same subdivision or adjacent)

If these conditions cannot be met, widen search radius and document the expansion rationale.

Full CMA Pipeline Detail (121-Step SOP + Video Evidence)

The CMA pipeline sits within the cultivate_analysis phase of the 121-step pre-listing SOP. These steps combine the original SOP with process details captured from Joe's recorded video walkthroughs:

StepActionAutomationHuman Judgment
1Property research: HCAD/CAD lookup for tax value, sqft, lot size, year built; compare assessed to market valueAutomatableNone
2Create CMA search in HAR Matrix: sqft range, lot size, bed/bath count, geo market area; account for spelling variationsManual (MLS login)Initial criteria selection
3CMA comparable search: iterate until ≥3 solds with sold-price variance ≤20%; default 6-month lookbackPartially automatableKnob selection + stopping condition
4Calculate $/sqft: average from comps, multiply by subject sqft for value estimateAutomatableSanity check
5Save MLS search as CMA/GMA/subdivision/Client#ManualNaming convention
6Generate Quick CMA PDF (Actions > Quick CMA > All > Save PDF)Manual (MLS)Highlight most likely value
6a(Optional) CMA Snap AI report for "bank perspective" comparisonSemi-autoComparison review
7ShowingSmart: (a) Activity on Comparables + (b) Target Market AnalysisSemi-autoArea selection from CMA
8Net sheet calculation: est sale price, $495 compliance, optional closing costs as applicableAutomatablePrice estimate review
9Compile packet: CMA PDF(s), net sheet, ShowingSmart reports, Realist PDF, CAD PDF, iteration PDFsAutomatable (assembly)Quality review
10Personalized screen-share video walkthrough of results + email with compiled packetManual (recording)Personalization

Mechanicals Checklist (Inspection-Report Methodology)

Joe's CMA uses an appraisal-adjacent approach (USPAP-aligned): mechanicals from the inspection report serve as secondary criteria for comp filtering. Each system is assessed:

SystemWhat to CheckImpact on Value
HVACHeating/cooling system age, type (central, mini-split, window), condition, recent serviceAged HVAC (15+ years) = negotiation point or price adjustment
PlumbingMaterial: copper, PEX, galvanized, polybutylene. Condition, known leaks, re-pipesGalvanized/polybutylene = insurance difficulty, lower value
ElectricalPanel age, amperage (100A vs 200A), wiring type (knob-and-tube vs modern Romex)Knob-and-tube = insurance difficulty, upgrade cost deduction
RoofMaterial (composition shingle, tile, metal), age, remaining life estimate, hail damage historyRoof age is a primary negotiation lever in Houston market
Water HeaterAge, type (tank vs tankless), capacity (40/50/75 gal), fuel (gas/electric)Near end-of-life (10+ years) = replacement cost in negotiations
FoundationType: slab, pier-and-beam. Condition, recent repairs, engineer reports, foundation-repair warrantyFoundation issues = largest single value impact in Houston
Houston-specific note: Foundation and roof are the two highest-impact mechanicals in the Houston market due to expansive clay soils and frequent hail/wind events. Always assess these first when filtering comps.

Comp Selection Rules & Stopping Condition

Stopping Condition (Required)

Iterate search criteria adjustments until ALL three conditions are met:

  1. Minimum 3 sold comps found
  2. Sold-price variance across all comps is ≤20%
  3. Comps are geographically relevant (same subdivision or adjacent)

Iteration Methodology

When the stopping condition is not met on the first search:

  1. Adjust sqft range (widen by 100 sqft increments)
  2. Extend age range (widen by 5-year increments)
  3. Extend sold date range (6 months → 12 months — note: 12 months = 18-month market window) from video
  4. If still unmet, widen geographic radius (adjacent subdivisions)
  5. Document every expansion and the rationale

Criteria Hierarchy for Comp Matching

PriorityCriteriaMatch Tolerance
1 (Primary)Square footage (building + lot)±15% of subject
2 (Primary)Age / year built±10 years
3 (Primary)Bath count (full + half)Same or ±1
4 (Primary)Sold within 6 months + active listingsExtend incrementally if needed
5 (Secondary)Mechanicals conditionSimilar system age/quality
6 (Tertiary)Amenities (pool, flooring, counters, stories)Like-for-like preferred

ShowingSmart Reports from video

Joe identifies two critical ShowingSmart reports from his recorded process:

ReportPurposeUse Case
Activity on ComparablesShows which competing listings are being shown and by whomExplain to sellers how much foot traffic their competition is receiving vs their listing
Target Market AnalysisBroader market analysis of price points and absorptionConvey to sellers why their house may or may not be selling, and what price points should be established
"These are two reports that I think are super important to have, which is activity on comparables report and target market analysis. This will be super helpful, especially when conveying to a seller why their house may not be selling, what price points should be established." — Joe (ShowingSmart request video)

Sale vs Rental Side-by-Side from video

For properties where both sale and rental analysis are needed, Joe uses a split-screen in MLS Matrix:

  • Right side = sale comps (same subject criteria)
  • Left side = rental comps (same subject criteria)
  • Both use the same geo market area and property characteristics
  • Helps the client see both options simultaneously and compare match counts

Agent Transaction History Export from video

Joe's method for pulling all past transactions for an agent:

  1. Go to All Properties > Sold (+ Pendings)
  2. All property types
  3. Set maximum results (999)
  4. Filter by Selling Agent MLS ID (run once)
  5. Then filter by Listing Agent MLS ID (run a second time)
  6. Click All > Export > Custom Export

This generates a complete transaction history for the agent covering both buy-side and sell-side deals.

Net Sheet Calculation

The net sheet estimates seller proceeds (or buyer costs) based on the CMA-derived sale price:

Line ItemAmountNotes
Estimated Sale PriceFrom CMAMost likely value highlighted on Quick CMA PDF
CommissionPer listing agreementBoth sides if applicable
Title / EscrowVariesTitle company estimate
Compliance Fee$495Standard TPJG compliance cost
Prorated TaxesVariesBased on HCAD/CAD tax value and closing date
Existing Mortgage PayoffVariesFrom seller's lender payoff statement
Estimated Net ProceedsCalculatedSale price minus all costs

Automation Tiers & Current Status

Currently Automated

  • HCAD/CAD bulk data download + parsing
  • HAR.com public listing scraping
  • CoreLogic PropertyDetails PDF extraction (manual invocation)
  • Transaction timeline cross-reference (991 addresses in timeline)
  • 9-county CAD endpoint configuration

Currently Manual (Human-Required)

  • HAR Matrix MLS login + Quick CMA generation
  • CMA Snap AI report generation
  • Comp selection criteria iteration (requires real estate judgment)
  • Price highlighting on Quick CMA PDF
  • Net sheet review + approval
  • Personalized video recording for client delivery
  • Client presentation delivery

Target Automation Roadmap

TierCapabilityRequirement
Tier 1 (Now)Parse existing Quick CMA PDFs into structured comp databasePDF extraction tooling
Tier 2Automate CMA generation via Memorial iMac SSH + browser automationHAR Matrix access credentials
Tier 3 (Long-term)AI-native valuation with confidence intervalsSufficient comp data + model training

Data Sources (Search hierarchy for CMA)

SourceContent
CMA DefinitionsJoe's area-vs-property distinction (mined from transcripts)
Capability AssessmentCurrent tools, gaps, automation tiers
Listing SOP121-step pre-listing SOP with CMA steps
Pre-listing Pattern LibraryPattern library for SOP cross-reference
Quick CMA PDFs100+ historical CMAs from Drive
PropertyDetails PDFs90+ CoreLogic reports
Transaction Timeline991 addresses with full deal history
CAD Endpoints9-county appraisal district configuration
Business ProcessFull TPJG business workflow
BrokerOS FrameworkAutomation levels per task
Drive InventoryCMA templates, HOWTO docs
Recorded Video Walkthroughs126 videos of Joe performing live CMA/Market Activity analysis (from 1,991 total)
YouTube Transcripts50+ channel transcripts covering Houston market context

Mining summary: Stage 1 (KB): 71,896 characters. Stage 2 (Transcripts + Drive): 111,394 characters. Stage 3 (Video walkthroughs): 126 CMA-relevant videos from 1,991 total. 52 unique KB paths + 59 unique transcript/Drive paths + 126 video transcripts.

Terminology Lock (Complete)

TermMeaningContext
CMAComparable Market Analysis — evaluation (buyer OR seller)Property-based, specific addresses
Market ActivityArea-based activity report — all transactions in a boundaryGeographic, not property-specific
MechanicalsMajor systems from inspection reports: HVAC, plumbing, electrical, roof, water heater, foundationUsed as secondary CMA criteria
Quick CMAHAR Matrix generated PDF with compsThe standard CMA output format
CMA SnapAI-powered predictive valuation tool"Bank perspective" supplement to traditional CMA
LeasingTenant-landlord relationshipNot "rental CMA" — use "rental market activity"
Net SheetSeller/buyer estimated proceeds/costsCalculated from CMA estimated sale price
Price BandingComp selection methodology for narrowing price rangeFrom HOWTO docs in Drive
Geo Market AreaMLS-defined geographic boundary for a neighborhoodPrimary geographic filter in Matrix queries
$/sqftDollar per square foot — primary valuation metricAverage from comps, multiplied by subject sqft