…it’s often assumed that comps of recently sold homes represent the current real estate market. That’s like seeing a Ford Edsel on the road in 1959 and assuming that Edsels, a colossal marketing failure, were selling like hotcakes.
The Garden State Multiple Listing Service is a huge database of current and historical information that influences every residential real estate transaction. Hyperlocal Market Analysis pulls every bit useful information out of the MLS database in order to point the way to better real estate deals.
Hyperlocal Market Analysis was born when I began investing in real estate; I wanted information that would increase the chance of doing good deals, while reducing the chance of doing bad ones. So, I built a system that enabled me to better target my buys so that, on the flip side, I could sell into market segments with the most buyers.
The analysis exploded into a much more ambitious program in the wake of the busted real estate bubble, and the resulting decline in residential real estate prices. In short, Hyperlocal Market Analysis shows that:
- towns are a cluster of price-point-defined market segments, each having its own supply and demand profile
- the degree of buyer interest in towns varies greatly, thereby causing some home owners to sell too low, and some buyers to buy too high
- the analysis of time-on-market not only leads to the more effective marketing of homes, it enables buyers to strike better deals
Importantly, Hyperlocal Market Analysis does not eliminate the need for Comparative Market Analyses using comps. What it does do is disclose the material circumstances behind those comps. This is important because it’s often assumed that comps of recently sold homes represent the current real estate market. That’s like seeing a Ford Edsel on the road in 1959 and assuming that Edsels, a colossal marketing failure, were selling like hotcakes. So, just as one sold Edsel most assuredly didn’t represent the nearly non-existent market for Edsels, neither does a comp or two represent the real estate market.
When I became a REALTOR®, I had no investment in business-as-usual, or in doing things the way they were always done. What I did have was an understanding that challenging times require a hyper-smart approach to doing business. So I created it. That’s what I bring to the table. It’s a table we should sit at together.