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How Much Can You Trust the Real Estate Sales and Price Statistics?
Posted by Century21Thomas | Monday, March 24, 2014


Most people think that when a house doesn't sell, there is something wrong with the house. Not necessarily! What if there is something wrong with the way the house was marketed? What if the expectations involved in the process were unrealistic? One crucial component of successfully selling or buying a home is data. Statistics related to pricing and sales have a strong impact on all decisions made and represent the main ingredient in the recipe for a successful real estate transaction.

I never understood why so many real estate agents or brokers throw all purchased homes into a single statistical category, whether they are distressed properties or not. You cannot expect to buy a brand new car for $10,000 - the amount the dealer had to sell a repossessed car to cover the cost of that specific loan, when the actual price of such a vehicle is much higher. Distressed properties do not set generic pricing levels for all the homes on the market and such expectations from buyers are only meant to create frustrations. "The home sales figures, home price trends, and other comparative statistics released each month to the news media, treat foreclosed upon homes and short sale homes in the same realm as a paid up home seller looking to profit or needing to move," complained Dave Kohl, real estate marketing and advertising expert, the author of "8 Hours To Sell Your Home" audio book.

It is not meaningful to report "the sales are up" when counting 3 distressed homes recently sold at half their value in a community of 20 similar homes and establish that median price as a reference for someone who paid the mortgage regularly, maybe even in full, and tries to relocate and sell the house. Even worse, if three months later another distressed home in that community is sold for a little bigger amount than the previous distressed homes, false news will be spread that home sales in that community are UP 10% over three months ago. How accurate is this conclusion for a real estate investor?

Take real estate stats and news with a grain of salt before you make any important decision. Question data and learn the details behind the numbers. Separate foreclosures and short sales from the rest of the other homes sold. Only this way you get closer to paying or asking a fair price and match your expectations with the reality of the market.

CENTURY 21 Thomas Real Estate prides itself in building a strong team of great real estate agents aware of these aspects. Our agents are highly trained and very knowledgeable of the intricate aspects of the local market. They all strive to provide their clients with accurate data. There is no coincidence CENTURY 21 Thomas Real Estate agents won so many awards for excellence and outstanding service. You can contact us on the internet here or by phone at (888) 249-2100.



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