As REALTORS\u00ae, we are deluged with a mind-boggling pile of statistics.<\/p>\n\n\n\n
It\u2019s actually a thing now for some marketing companies to turn this data into beautiful, professional-looking charts and diagrams so we can then show them off to our clients.<\/p>\n\n\n\n
Those charts sure look impressive! <\/p>\n\n\n\n
But consider the possibility that swamping your clients with statistics might be doing more harm than good. <\/p>\n\n\n\n
Fancy charts and diagrams might impress your most hard-core Analytical clients. But even they can get overwhelmed.<\/p>\n\n\n\n
You\u2019ve heard of Analysis-Paralysis, right? The more information that you feed an Analytical person, the more confused they get. This leads to bad decisions.<\/p>\n\n\n\n
And what if your seller is NOT an Analytical? <\/p>\n\n\n\n
Most statistical data is clutter to them. You show them, and their eyes gloss over. <\/p>\n\n\n\n
——————–<\/p>\n\n\n\n
I find that half of Real Estate stats serve no useful purpose. The other half? I feel like I need to explain why they are inherently unreliable.<\/p>\n\n\n\n
\u201cDays on the market?\u201d<\/em><\/p>\n\n\n\n Unfortunately, this stat doesn\u2019t tell you how many times some of those properties have been on and off the market.<\/em><\/p>\n\n\n\n \u201cSale price to list price ratio?\u201d<\/em><\/p>\n\n\n\n Unfortunately, this stat doesn\u2019t tell you how many price reductions there were before some of those properties finally sold.<\/em><\/p>\n\n\n\n I suggest you skip all that explaining and instead show your clients the only statistics that truly matter when it comes to understanding the market:<\/p>\n\n\n\n Supply and Demand, and Absorption Rate. <\/strong><\/p>\n\n\n\n ——————–<\/p>\n\n\n\n The absorption rate is simply the ratio between supply and demand. When the absorption rate changes, it affects all the other statistics.<\/p>\n\n\n\n For example, if the absorption rate declines, the \u2018Days on Market\u2019 goes up, and the \u2018Sale Price to List Price\u2019 goes down. <\/p>\n\n\n\n Every Real Estate statistic is essentially a derivative of supply and demand. So why make your analysis of the market more confusing than it needs to be?<\/p>\n\n\n\n Just use the root information. You\u2019ll look like a genius, and your clients will understand how these statistics directly affect the saleability of their listing. <\/p>\n\n\n\n ——————–<\/p>\n\n\n\n To demonstrate supply and demand effectively, you\u2019ll need to make monthly graphs. <\/p>\n\n\n\n It will take some effort, but when you\u2019re done, you\u2019ll have a powerful and insightful set of charts to show your clients that your competitors don\u2019t have.<\/p>\n\n\n\n The month-to-month inventory and sales numbers are all available from your local board. Just gather the information for 3-5 years, input it into a spreadsheet, and export the data to create yearly graphs. <\/p>\n\n\n\n You can also indicate the absorption rate (sales divided by inventory expressed as a percentage) on the same graph.<\/p>\n\n\n\n If you don\u2019t know how to build graphs from a spreadsheet, either consult The Google or hire someone much younger than yourself to teach you! <\/p>\n\n\n\n That\u2019s what I did.<\/p>\n\n\n\n ____________________<\/p>\n\n\n\n You\u2019ve got your graphs. Now what?<\/p>\n\n\n\n You\u2019ll see\u2026 <\/p>\n\n\n\n You\u2019re going to start noticing how supply and demand directly affects pricing and saleability.<\/p>\n\n\n\n After a while, you\u2019ll become skilled at predicting the future quite accurately, and before you know it\u2026<\/p>\n\n\n\n You\u2019re a market expert!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" As REALTORS\u00ae, we are deluged with a mind-boggling pile of statistics. It\u2019s actually a thing now for some marketing companies to turn this data into beautiful, professional-looking charts and diagrams so we can then show them off to our clients. Those charts sure look impressive! But consider the possibility that swamping your clients with statistics […]<\/p>\n","protected":false},"author":1,"featured_media":148,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-14-the-ultimate-listing-presentation"],"_links":{"self":[{"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=\/wp\/v2\/posts\/147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=147"}],"version-history":[{"count":0,"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=\/wp\/v2\/posts\/147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=\/wp\/v2\/media\/148"}],"wp:attachment":[{"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agentskills2.dvsrvr.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}