Statistics Don't Have Room for Nuances - True or False?

By
Real Estate Agent with Long & Foster Real Estate, Inc., Crofton, MD 21114

Another real estate agent in Crofton recently downplayed the use of statistics in evaluating the market, saying in an online newsletter that "statistics don't always have room for nuances" such as the effect of the tax credit on units sold and sold prices.  True, BUT...

My True or False?very first Activerain post was a market study based on statistics published by MRIS, our regional mls.  Within a week, I listed a Crofton home for sale as a direct result of this first post, and a second listing followed a few weeks later.  Needless to say, I've been a believer in market studies ever since.

In response to my competitor's statement, I will concede that the numbers are the numbers are the numbers... and there's no room for nuances.  Again, however, I say BUT...

 

Statistics are to a Market Report what Comps are to a CMA.

Comps used in a CMA are factual, too, but we wouldn't hand a pile of mls printouts to a seller and say "here are the comps... now YOU figure out the price."  Real estate agents are expected to bring some expertise to the table and make adjustments for the nuances in comps, such as property features and condition, and estimate a likely selling price or price range.  THE BOTTOM LINE:  Comps + professional analysis = CMA

I don't think it's any different when we present statistics to consumers.  We shouldn't just hand them a bunch of charts and graphs and say "here are the numbers... now YOU figure out the market."  Our clients expect us to interpret those numbers to account for the nuances, such as tax credits and current employment figures, and help them understand market conditions.  THE BOTTOM LINE:  Statistics + professional analysis = Market Report.

 

My answer to the question asked in the title of this post, therefore, is this... (drum roll please)... "All of the above."  TRUE because real estate sales statistics themselves have no room for nuances, but FALSE because those statistics are influenced by many factors - factors which we understand and should be communicating to consumers in our role as real estate professionals.

The ability we develop through training and experience to make sense of the facts - whether comps or statistics - is the value we bring to the table in any real estate transaction.  It's probably the main reason home sellers and buyers NEED us to help them buy or sell a home.

 

Don't make the mistake of minimizing the importance of accurate real estate statistics.  In fact, I would suggest that pricing a home today requires both a CMA and a Market Report prepared by a knowledgeable real estate professional like you or me.

Posted by

Margaret Woda, Long & Foster Real Estate, Inc.
Military Residential Specialist (MilRES®)
(410) 451-6245    mwoda@mris.com

Margaret Woda

 

Search for homes and explore the pages of MargaretWoda.com at your own pace and convenience for more information about homes, communities, and the home buying or selling process in Maryland.

 

Information contained in this blog post is reliable on the date of publication, but it is subject to change without notice.

close

Re-Bloggged 1 time:

Re-Blogged By Re-Blogged At
  1. Tony Marriott 11/01/2010 07:31 PM
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
ActiveRain Community
Groups:
Active Rain Newbies
Common Questions for New Agents
Dedicated Bloggers
Market Reports
Real Estate Rookie
Tags:
market report
cma
pricing a home

Comments 40 New Comment

Ambassador
874,661
Margaret Woda
Maryland Real Estate & Military Relocation
Long & Foster Real Estate, Inc., Crofton, MD 21114

David - I'm really okay with people who don't believe in statistics because that makes me look good.  LOL.  But nice to know you're really in our corner with this.

November 02, 2010 11:55 AM
Rainer
127,314
Dan Quinn
Dan Quinn
Prudential PenFed Realty

I'm with you Margaret and today those statistics are getting harder to comprehend it seems.  Current market statistics aren't static by any means.  What we see today is likely not what we will see tomorrow.  It takes a professional, one who is in the trenches every day, to sort it all out.

November 03, 2010 11:52 AM
Rainmaker
88,543
Frank Harris
Keller Williams Realty Centre

Market studies are very helpful. As a listing agent we must or should know the numbers surrounding our listings. I have worked with sellers who did not care as long as that got what they needed, other sellers are very particular about knowing everything going on in their market.

November 04, 2010 01:01 PM
Rainmaker
646,601
William James Walton Sr.
Greater Waterbury Real Estate
WEICHERT, REALTORS® - Briotti Group

Margaret, you speak the truth. That one of the major reasonswhy  post market reports. People want the statistics and the interpretation of those statistics., Now I'm off to review that first post of yours to see if I'm doing it right... ;-)

November 05, 2010 10:42 PM
Ambassador
874,661
Margaret Woda
Maryland Real Estate & Military Relocation
Long & Foster Real Estate, Inc., Crofton, MD 21114

I can't believe you found that first market report.  I've come a long way since then... much more comprehensive market reports, but no better results than that first one.

November 06, 2010 08:45 PM
Ambassador
874,661

Margaret Woda

Maryland Real Estate & Military Relocation
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Real Estate and community information for home buyers and sellers, military transferees, and rookie agents in the greater Crofton area, including Annapolis, Bowie, Davidsonville, Fort Meade, Gambrills, Joint Base Andrews, Millersville, Odenton, and the U.S. Naval Academy.

EHO



Margaret Woda