Real Property Alpha - Latest Comments in Real Estate Reporting Contains Inherent Bias Towards Sellers

Re: Real Estate Reporting Contains Inherent Bias Towards Sellers

ravis — Tue, 18 Aug 2009 15:52:04 -0000

I think you're confusing the terms "sellers" and "owners." Sellers aren't necessarily buyers-to-be (maybe at some later point). Both buyers and sellers are owners, one actual, one prospective. As such, they both want the value of the house to go up. No one wants to buy today and learn they could have bought the same property for half as much six months later. That is what discourages buying in a sinking market and encourages it when the market bottoms and turns up.

Re: Real Estate Reporting Contains Inherent Bias Towards Sellers

Reeder — Tue, 18 Aug 2009 12:34:45 -0000

One more thought. By this logic, a Seller is a "Buyer-to-be".

Re: Real Estate Reporting Contains Inherent Bias Towards Sellers

Reeder — Tue, 18 Aug 2009 12:17:12 -0000

Thanks for commenting. This is an interesting perspective, but I think it's ultimately problematic for Buyers. Maybe my original point needs to be clarified a little more. I'll try to post a more complete explanation some time in the next few days as time allows.

Thanks again for commenting.

Re: Real Estate Reporting Contains Inherent Bias Towards Sellers

ravis — Tue, 18 Aug 2009 12:07:22 -0000

Actually, a buyer is an owner-to-be, and owners of all stripe want their assets to appreciate in value. A sinking market is problematic, for a buyer risks making a bad deal and losing money on his purchase even before he takes possession. He wants the best price, yes, but best price is only determined in a rising market. There's always a better price in a falling market. Who hasn't bought stock and learned that? A declining housing market is like a declining stock market: It presents some opportunities, but after a while it sucks for everybody.

Re: Real Estate Reporting Contains Inherent Bias Towards Sellers

Reeder — Tue, 18 Aug 2009 11:17:34 -0000

John - Thanks for commenting and thanks for reading the site.

Re: Real Estate Reporting Contains Inherent Bias Towards Sellers

John Thomas — Tue, 18 Aug 2009 07:23:16 -0000

Agreed and same with the stock market. It is rare to hear (Waren Buffet being an exception) the buyer's perspective.