About NW Real Estate

“Statistics: The only science that enables different experts using the same figures to draw different conclusions.”  Evan Esar (1899 – 1995)

We’ve been abused by statistics.  Let’s make sure we know what the statistics mean:

Median -  If you array all the sold properties in order of sold price, the median sold price is the one that falls in the middle.
Average -  If we add up all the sold prices and then divide by the number of solds we will get the average sold price.

While these two statistics are the most commonly quoted, neither of them give us any help in pricing an specific property.  In fact, both may lead a buyer or seller to a wrong conclusion. Sellers want to believe that prices are still going up. Buyers want to believe that every seller is on the verge of foreclosure and should be happy to take any offer.

We in the business know that prices on individual homes, for example, have been falling, modestly here in the Northwest but dramatically in some other parts of the country. We also know that most sellers, although they may want to sell, are not in dire straights.

For Sellers:  If you don’t need to sell and are not willing to be realistic in pricing, don’t bother entering the market.  If you need to sell, your home has to be priced very competitively, be as clean and attractive as possible, be accessible for showing, and be marketed appropriately by a professional REALTOR who understands this market and where the buyers are.

For Buyers:  A REALTOR can find you a “steal” of a home. A REALTOR can find you the home of your dreams. They are not likely to be the same home. What is most important?  Are you waiting for the bottom of the market? Well, as a colleague in Orange County says, “No one is going to ring a bell to tell you when it is the bottom of the market.”  It might be next week, or next month, or next year. Or maybe it already happened last month! Right now we have lots of homes available, pricing is better than it has been for years, and interest rates are still at historic lows. If you are a buyer who intends to live in or hold a property for five years or so, this is a terrific buyer’s market. If you are a “flipper” looking to sell for a quick profit you probably ought to sit it out for a while.

Dave Koch, CRB, e-PRO is a Vice-President of RE/MAX equity group, inc. and principal broker of its Lake Oswego office. He has a BA in Economics and an MBA in Finance. He has served as President, Clackamas City Association of Realtors 1989; Founding President of RMLS 1990-1991, and President, Oregon Association of Realtors, 2002. He was selected as CCAR Realtor of Year 1992; Million Dollar Club, Broker of the Year 1996; Portland Metro Association, Realtor of the Year 1997; and Oregon Association of Realtors, Realtor of the Year, 2002.