(This is the 2nd of a 5-part series about the harm caused to a real estate market by agents and brokers reporting innacurate or misleading real estate statistics... that more often reflect an agenda than true market conditions. See article #3 in this series here, and previous article to this one here.)

 When a Real Estate Number Doesn’t Make Sense :
If one sees the reporting of a real estate statistic in the newspaper, or in direct mail, that seems to run contrary with what you think might be true, it probably isn’t. Such a situation at least calls for a closer look and keener understanding of what the number actually says, or doesn’t say. Lets look at a few recent examples which we think will be helpful to you in both dissecting and appreciating differences in real estate reporting.

For the last two years, the national news media has saturated the country with news about the US housing industry. And rather than package the news as “good for buyers”, it has been consistently categorized as “bad” for the housing industry as a whole. Predominantly this news has been reported on cable news stations and on news and economic resources throughout the internet.

Even more astoundingly, the sensationalistic housing industry news these days is based on comparing current market conditions with those of early 2005, the highest point ever in terms of both value and demand. It’s like comparing the best of times... to anything else.

Now lets understand the fact that 80% of all US home buyers use the internet first as a real estate resource. Another way of stating this is 8 of every 10 home buyers shops for a home first on the internet. Lets also appreciate that these people also primarily get their news from both cable television and the internet, which they do. This means that South Lake Tahoe home buyers are seeing the same national real estate news that you are, and that collectively they are an extremely informed and tech savvy lot as well.

Lets also again remember that 65% of South Lake Tahoe homeowners, who were buyers first, do not live here. This means the South Lake Tahoe home buyer is even more prone to shop for homes on the internet than most. As such, they are also more likely to getting real estate news off the internet too.

So, what do you think happens if a potential buyer sees something in the online version of the Tahoe Daily Tribune, or in a piece of direct mail, coming from an agent or brokerage in this market climate that reports the South Lake Tahoe real estate market is up; or that prices have increased; or has ambiguous, irrelevant information that suggests so?

The smart, tech savvy internet home shopper knows better. Rather than being attracted by real estate skew spew pooh, they are taken aback from it. Insulted by it. If we were them, we’d stay away. And we bet you would too. And that’s exactly what a potential buyer, perhaps your potential buyer, does too.

And this is the very point why it is so important to make sure all real estate reporting is accurate, relevant and specifically qualified as to what is, or is not included, in the report. Buyers must understand that real opportunity exists up here right now. And telling them that prices are up, when they aren’t, or our market has stabilized, when it hasn’t, and demand is up, when it isn’t, simply won’t cut it.

(See article #3 in this series here, and previous article to this one here.)