Jun 12, 2020

The Importance of Statistics in Real Estate

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Drew Grossklaus, Sales Director/BIC East Cooper

Like many students, I was never a big fan of my statistics courses in high school, college, and graduate school. However, as I progressed in my professional career in real estate I saw firsthand how important statistics are in the decision-making process. As we continue to move through these unique times, we are reminded of the importance of examining statistics before making real estate decisions.

The most important thing to know about statistics is understanding how statistics are derived. I have come across many instances in which reading the “fine print” is necessary to truly understand the context of the numbers. In today’s world where there is money to be gained by headline grabs, displaying extreme statistics is one of the tactics used by the media to pull readers in. Oftentimes, a closer examination reveals that the statistics cited are presented in a misleading way to support one side of an argument or idea. Unfortunately, I have seen this tactic used in the real estate industry with some firms and agents presenting misleading statistics to influence their clients.

When thoroughly examined and accurately presented by knowledgeable real estate agents, statistics are actually very helpful for both Buyers and Sellers. When working with Sellers, we look at comparable properties and consider months inventory, percentage sold, sold price versus listing price, and more. All of these statistics help the Seller to make an informed decision when determining listing price and also aids in negotiations when a contract is received. The Buyer can use statistics to make a thoughtful offer, help to justify the offer, and decide the final offer number on a property. Statistics are also important to both the Buyer and Seller when looking at overall real estate trends within their neighborhood, city, region, or even state.

While statistics don’t make up the whole story in real estate, they are a very important part of the story. William Means agents strive to provide Buyers and Sellers with the statistical data needed to help them make the best possible decisions. As it turns out, the knowledge I gained in those statistics classes I disliked so much is necessary to help people make one of life’s most important decisions: buying or selling their home.

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