Posted by Jonathan J. Miller -Thursday, March 3, 2011, 6:30 AM
This recent article in The Real Deal magazine raises the issue of “analysis paralysis“.
About 10 years ago, the president of a small real estate brokerage company told me as we were walking down the street:
You know, Jonathan, I like your market reports except for the fact that there a too many numbers in them.
Admittedly I was a taken aback by the comment.
The disconnect between us in our role in the housing market was clear. I see the reports as a way of delivering information to help people be informed. This broker, who was successful and knowledgeable saw market research as raising more questions…and more comfortable with market reports in their previous form; as a brochure, a comfortable picture of a home filled a narrative on how wonderful it is to own a fine residence.
In other words, “ignorance is bliss” trumps “knowledge is power”?
I remember hearing developer Ian Schraeger use the phrase “Analysis Paralysis” in a Real Deal New Development Forum a while ago when he was lamenting the fact that everyone was overanalyzing the market and unable to decide whether to purchase.
I can appreciate a broker/developer’s frustration in getting the market to go in the direction they need it to. That’s called “having a vested interest in the outcome” and contradicts the purpose of market research in their mind. They make a living on enabling transactions. I understand that. However buyers and sellers need to be comfortable before they come out in droves and change the direction of a market. If they don’t feel as confident as the agent, then be patient. If the conditions the brokers see are valid, the buyers will come around. If they aren’t valid, they won’t.
That’s normal market behavior.
Being informed is not a bad thing.