the Message of Real Estate Paintings

Photo Credit: Wikpedia

Scholars claim Shakespeare in writing Henry IV, as the originator of a phrase equivalent to “Don’t shoot the messenger”.

To many, messages take the form of either good or bad. In their purest sense they present themselves strictly as information. Your perception of the message and your reaction to that understanding determines your actions – so it was for King Henry and so it is for you.

Messages arrive in many forms. They can be hand written using pen and ink on paper, by visual signal as in semaphore, electrically tip-tapped on a single key using morris code, typed on one keyboard and electronically displayed a world away on a computer or cell phone. If you are prone to the dramatic, a message can be written in blood! Messages can be verbally expressed by a whisper, a shout, pictorially in a painting, a picture, a drawing or graph.

Graphs like messages, come in many formats, colors and size but are always depictions of numbers. They are visual representations of numerical predictions of future vision or historical reality. In real estate, graphs are used extensively to help us understand the numerical message.

Two Pictures of the British Columbia Real Estate Market

courtesy of the British Columbia Real Estate Association. A – The Transactions by Board area graph above depicts total 2008 transactions (sales), in the various boards across British Columbia. The picture shows a declining number of sales in all areas and are clearly below that of 2007. B – The British Columbia Housing Market graph below is summarized as 4 segments of the real estate market.
  1. Upper Left : depicts “trended data” and shows the price change relative to the sales versus active listing ratio decline in the past months.
  2. Upper Right: shows the Quarterly Residential Sales Average Price continuing its climb.
  3. Lower Left : reveals a trend line between a seller’s market versus a buyer’s market with the trend creeping upward to the buyer’s market.
  4. Lower Right: pictures the Residential Unit Sales from years 2000 to 2007 and into 2008 where Unit Sales are titling downward.
courtesy of the British Columbia Real Estate Association.

Market Effect On You

In combination these two graphs are complimented by a simple but effective tool known as the Pricing Pyramid. This Pyramid acts as guide in helping you determine what the above graphs suggest as a down trend in the real estate market. It serves to illustrate the drop off and increase in potential buyers relative to optimum market price. Clearly, it shows that when selling or buying, the competition between potential buyers changes dramatically with the slightest price adjustment.

Making the Pictures Work for You

  1. If you are planning to sell your home or if you are currently selling your home the price you are asking is now more critical than ever. A bi-monthly revue of your pricing strategy should be completed to ensure your asking price is in step with the market. Be cautious. A small percentage above market of as little as 10% will eliminate as many as 30% of the potential buyers.
  2. The Pyramid also applies to Buyers. As your offer approaches market value fewer people will participate. If your offer is 10% above market value you eliminate 30% of other potential buyers. If your offer is as little as 10% below market value, you will be competing against 15% more Buyers. To help you determine if your offer is competitive relative to the market your Realtor® will be happy to provide you with a Buyer’s Market Evaluation.

In general, numbers that serve to create graphical representations rarely lie.

As it was in Henry IV’s time, it’s the perception that makes the messenger nervous.

Got a Vancouver Real Estate question? I’ll do my best to answer it. Call or send me an email.

About Larry Yatkowsky

Larry is a recognized real estate expert. A veteran professional, his experienced counsel leads Vancouverites in his west side community to place their trust in a man passionate about his work. Uncompromising ethics bring a balanced approach to realizing your real estate dreams.

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*Disclaimer: Statistics Courtesy REBGV. While believed to be accurate they are not guaranteed.
**Numbers provided may vary as they are dynamically posted by the REBGV.

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