Here is my third post of 3 myths within the real estate industry. Myth #3: Market data, gives a complete picture. A complete enough picture so that Real Estate professionals today, can advise their clients, to make smart buying & selling decisions. A myth!
Market data, gives a complete picture, is a myth. Some people might think that Metro market data is useful, but not really. It may be useful in telling stories or in marketing, but this primarily is because the buyer or business is myopic and unaware. Unaware as to what really affects land prices and risk. I read somewhere in the WSJ where around 30% of the people in the USA can be fooled by complete lies and disingenuous and twisted facts. Maybe that’s why we are today politically. So if you are selling to the 30%, maybe myth is not a myth. But for most people, the 70% where actual data and fact maters, this is a Myth.
For example in San Francisco there are over 900 local markets; all these markets are very diverse. Everyone knows that RE is non-homogenous and different for one block and neighborhood to another.
The latest growth patterns at the Block, Tract, and Zip Code, have the greatest significance. The closer the growth pattern is to the “building” the more influence the local growth data has on risk and opportunity.
Now you know why, no one has access to critical local market data. Or growth data for a matter of fact.
Making BIG decisions based upon very limited and missing facts, is the classic definition of Risk.
As always, appreciate your feedback on this third myth – Myth #2 Market data, gives a complete picture
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