Real Property Alpha » Real Estate Reporting Contains Inherent Bias In Favor of Sellers

Real Estate Reporting Contains Inherent Bias In Favor of Sellers

Has anybody else noticed that real estate reporting is affected by an inherent and assumed bias in favor of sellers? Think about it for a second. Every article, newscast, etc., frames the story in terms of the market getting better, or worse with the assumption that readers and listeners will infer that it means better or worse for sellers.

Markets impact both buyers and sellers. If the market is getting better for sellers, it’s getting worse for buyers.

I am amazed at how widespread this shared assumption is. I’m drawing attention to the assumption now, but I no doubt share the same bias.

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ravis 6 months ago 1 point
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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.

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ravis 6 months ago 1 point
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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.

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Reeder 6 months ago 1 point
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One more thought. By this logic, a Seller is a "Buyer-to-be".

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Reeder 6 months ago 1 point
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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.

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John Thomas 6 months ago 1 point
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Agreed and same with the stock market. It is rare to hear (Waren Buffet being an exception) the buyer's perspective.

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Reeder 6 months ago 1 point
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John - Thanks for commenting and thanks for reading the site.

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