Price is the number 1 reason homes don't sell? No kidding!

Stupid statistics are a major pet peeve of mine. I define a stupid statistic as one that is either A.) So obvious as to be completely worthless. or B.) Not backed by any particular statistics.

As I watch real estate shows and read columns about the real estate market, I keep coming across a perfect example of a stupid statistic. You've probably heard this one yourself: "The number 1 reason that homes don't sell is that they're overpriced." Too see a couple of examples of this claim in action, click here and here.

There are a bunch of reasons that this statistic is dumb, but here are two:

  • If a home is listed at $495,000 and doesn't sell, there's a pretty good chance it could be sold for $250. Anything will sell at the right price. So it's obvious that a home that doesn't sell would be more likely to sell at a lower price. Duh!
  • How do you quantify the "number one reason" a home didn't sell? What I say the number one reason is that the kitchen wasn't brand new and there was no Van Gogh original included with the living room? Double duh!

Read Full Story
  • DJI29916.0632.270.11%
    NASDAQ12371.7522.380.18%
  • NIKKEI 22526809.378.390.03%
    Hang Seng26728.50195.920.74%
    DAX13253.63-59.61-0.45%
  • USD (PER EUR)1.220.00490.40%
    USD (PER CHF)1.120.00490.44%
    JPY (PER USD)103.85-0.5720-0.55%
    GBP (PER USD)1.350.00950.71%

From Our Partners