You may have heard the old saying, "numbers do not lie," and this is one idea that you can take to the bank. If you are to listen to self-made wealthy individuals, there is always one common trait among them. They have a good sense of numbers. As any savvy real estate investor will tell you, they are avid followers of real estate market reports.
Yet, I have met people that they say they rely on their guts. Somehow they have this mystical knowledge they understand and predict the market. I have never met a successful real estate expert who claims they go with their gut feelings; however, you may judge it yourself.
What is a market report?
A market report is a written report that investigates the changes in a market. There are several statistical tools and analyses are employed to make sense of the data available. Some of the statistical tools are simple, and others are complex, requiring experts to perform the analysis. However, lucky for you and me, recent developments in software have made it easy and accessible.
A market report comprises data, charts, illustrations, and written descriptions explaining the changes in a market. Some of the specific data analyzed are demand, supply, price fluctuations, market tendency, price index. Keep in mind that the market report is an information tool for businesses and consumers to make intelligent decisions. The real estate market report is no different from other consumer market reports. Concerning real estate, products are homes, apartments, offices and so forth. A real estate market report can focus on a small community like Willowdale or may have a broad look into a metropolitan like Toronto. Banks, insurance companies, and government may consider market reports encompassing the whole nation.
Regardless of the scale of data, market reports are similar in structure, and they all follow specific criteria.
Characteristics of Market Report and what makes it useful
You should expect specific characteristics in a very market report. The consistency and expected criteria within a market report make it an excellent tool for professionals. Here is the list of market report characteristics outline below:
Many savvy real estate agents, real estate professionals and investors rely on the statistical information contained in the real estate market report. Real estate agents can utilize the information (1) to help them price the property at the market value, (2) help the clients to choose a particular market (3) and timing of selling or buying a property. Professional real estate investors are not shy to say they will not decide on any property until they fully understand the market condition based on the market reports. It is a bit of great advice we all need to take in; you should also familiarize yourself with the market report and consult with your trusted real estate agent before embarking on and real estate decisions.