Nice mea culpa! Like I always say…..question everything and assume nothing. He assumed and got egg on his face. It’s interesting that he claims he was led to beleive otherwise….I wonder who if anyone actually led him to beleive this or was he simply cutting corners on his analysis and not really asking the right questions?
The problem with what he does is he breaks down the data on a macro level without really understanding it on a micro level. Without an understanding of the micro level its nearly impossible to present an accurate picture. Here’s an example..I call this
How much did this house sell for?
Joe Realtor lists a house for $1M. The first weekend he holds an open house and decides he loves it himself and wants to buy it. He buys the house with 20% down and it is reported as a sale for $1M. However, he was paid a $50,000 commission (5%- the market average). The seller also paid 1 point on his loan. Through the course of his inspection he found several issues that he requested the seller to address. In lieu of fixing them the seller gave him a $15,000 credit for paint, carpet and repairs. HOW MUCH DID THIS HOUSE REALLY SELL FOR?
BTW, This happens all the time.
Wish me luck…tonite I get the pleasure of presenting my clients offer to a seller and explaining why we beleive his house is worth $100,000 less than he beleives without even accounting for a downturn. I suspect it wont be the first time someone throws me out of their home nor will it be the last. Don’t you wish you had my job?
