The inspiration for this blog post came from reading an article by Leanne Smith called "Past Experiences Can Benefit You As A REALTOR." Discussions in the comments unfolded about the CMA and how "technology only goes so far." I sat back and pondered; then inspired by understanding the principle of the butterfly effect. As a gardener, knowing that if I do not plant Lantana flowers, or if the butterfly does not know where to go to get the pollen it needs to survive, it can be the death of one single butterfly. But to think big picture, if this is true for one butterfly, the ripple effect can have historical consequences for ALL butterflies!
A REALTOR® cannot survive in this business by punching a few keys to create a current CMA if the agent does not know how to properly analyze to make sure the numbers and the terms make sense! A home is an investment, whether it is owner occupied or leased. To find the right property, the buyer must have the right information and the agent better be able to interpret the data and answer the buyer's questions with intelligence.
Statistical information is a major source for prospective buyers. For an investor or Commercial Buyer, it is their passion! They can see through smoking mirrors of an inexperienced REALTOR®. To some agents it is a serious error to print out a CMA without having the knowledge to analyze and know what the statistics mean. Just because it is available through the MLS, does not mean it is enough information to the buyer.
The easier computers and technology make things seem, the harder a REALTOR® should work on learning how to apply statistical reasoning. To be able to understand successes and failures, leaders in the Real Estate Industry must understand more clearly and know how to survive in this business.
These are my findings and opinions. In sum, the use of easily accessible statistical information only scratches the surface of the possibilities to prosper or fail. The interpretations of statistics require a high level of skill and understanding to make sense. Consumers depend on survival of the fittest in the Real Estate Industry who knows that when the going gets tough, the tough get going.
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