The Many Sides of Real Estate Statistics

A lot of my content is stat related, and I’ll be the first one to tell you that a stat, price, number, etc can be used to tell more than one side of the story.

Depending on what audience I’m speaking to (buyer or seller) will determine what I’m focusing on, and what direction I go when explaining the stats. Now that’s not to say that I’m skewing a view point to suit my angle, but Real Estate is a market where your view can be quite different depending on what side of the transaction you are on.

For instance, looking at the average sale price for a particular neighbourhood: as a buyer that might become your ceiling in terms of how much you are willing to pay for a house there.  As a seller, that might actually be your floor price, and not willing to accept anything below that.

Is There a Deal to be Had Here?

Now on paper, it might seem like these two might not come to a deal, but that’s where the negotiation comes in to play. As the listing agent it’s my job to prove the home’s worth and valuation, but the agent on the buy side I might be looking at the reasons why this home might not stack up the same against some of the recent comparable sales. 

Sometimes the sellers need to sell to be able to close on a purchase they’ve already committed to.  If this is the only real interest they’ve received for their home, then having to accept a lower price might be in the cards. 

At the end of the day the motivation on both sides will determine if a deal gets done or not.  Sometimes the sellers need to sell to be able to close on a purchase they’ve already committed to.  If this is the only real interest they’ve received for their home, then having to accept a lower price might be in the cards.  The very same thing can happen on the buy side. Maybe they are starting a new job or it involves moving to a new school district and there is a time crunch involved. The buyer might be willing to pay a bit extra in order to get the deal done on their terms.

The important take away is if you understand all sides / views / angles of real estate statistics, you are going to be ahead of the game. Working with an agent that knows how to explain the numbers, rather than just regurgitating them, makes a big difference in getting the most amount for your home, and/or securing a great deal on the buy side.