The Opinions of Experts
August 3, 2010
There are exonomic experts. There are financial experts. There are real estate experts. Perhaps everyone is an expert in one field or another.
As I follow the "experts" in the various news media, it is amazing that experts can differ widely in their opinions of the same subject. Needless to say, the subject that I follow the most is the experts' opinion of the state of the economy and ,in particular, the state of the real estate market. On expert says it is recovering. Another expert says it is in for a "double dip". Another says the "shadow inventory" of foreclosed properties is huge. Another says that this inventory is being absorbed without a glut of homes on the market.
Then there are the experts in the arena of home sellers and home buyers. Home sellers know that the value of their home is much greater than the value of the home that just sold around the corner. The home buyer knows that the value of the homes on the market is still too high. It seems that every one has an opinion and that everyone's opinion is grounded in some sort of expertise.
Real estate professionals also have opinions. Economists in both the National Association of Realtors and in the California Association of Realtors have opinions about the recovery of the real estate market.
Hopefully the real estate agent who is working directly with buyers and sellers basis his or her opinion on the actual data from transactions that have taken place in the past several months. it is a real challenge to an agent to give a prospective seller or buyer an "opinion of value" for a particular property. Considering that in some market places, there is a limited number of transactions and that each property has its unique quirks, agents knowledge of the properties is critical. They may not be experts in knowing the future direction of prices, but they must be expert at knowing what has recently sold and for how much. Their expertise is local and is an opinion that can prove valuable to those potential sellers and buyers.
There are exonomic experts. There are financial experts. There are real estate experts. Perhaps everyone is an expert in one field or another.
As I follow the "experts" in the various news media, it is amazing that experts can differ widely in their opinions of the same subject. Needless to say, the subject that I follow the most is the experts' opinion of the state of the economy and ,in particular, the state of the real estate market. On expert says it is recovering. Another expert says it is in for a "double dip". Another says the "shadow inventory" of foreclosed properties is huge. Another says that this inventory is being absorbed without a glut of homes on the market.
Then there are the experts in the arena of home sellers and home buyers. Home sellers know that the value of their home is much greater than the value of the home that just sold around the corner. The home buyer knows that the value of the homes on the market is still too high. It seems that every one has an opinion and that everyone's opinion is grounded in some sort of expertise.
Real estate professionals also have opinions. Economists in both the National Association of Realtors and in the California Association of Realtors have opinions about the recovery of the real estate market.
Hopefully the real estate agent who is working directly with buyers and sellers basis his or her opinion on the actual data from transactions that have taken place in the past several months. it is a real challenge to an agent to give a prospective seller or buyer an "opinion of value" for a particular property. Considering that in some market places, there is a limited number of transactions and that each property has its unique quirks, agents knowledge of the properties is critical. They may not be experts in knowing the future direction of prices, but they must be expert at knowing what has recently sold and for how much. Their expertise is local and is an opinion that can prove valuable to those potential sellers and buyers.
posted by shirley harry at 8:11 AM
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