“An Educated Consumer is My Best Customer” - Sy Syms
AM 570 Podcast
Column from The Wave
"An educated consumer is my best customer" ~Sy Syms
The Last Supper is an undisputed masterpiece of art. While everyone knows that de Vinci was an iconic artist, few may know that his art was not spontaneously produced but rather scientifically crafted using precise measurements. The artist’s vision was in fact delivered through science. Likewise, but admittedly in no way equivalent, the art of bringing together buyers and sellers of real estate relies upon science as well. In the absence of accurate comparative sales data however, the marketplace can get very messy. That's why brokers must carefully analyze and interpret certain data while guiding realistic buyers and sellers to achieve their common goal in each transaction. Misinformed buyers and sellers, on the other hand, just muddy the waters.
Advertisers of real estate have never been known for their honesty or accountability. Keep in mind, I’m not referencing their notorious use of tricky words like “cozy” in place of "small", or "could use TLC” rather than "needs full renovation": I’m talking numbers here. For instance, let’s say a particular house is worth about $1M. The typical broker (hopefully) knows its approximate market value yet still will grossly overprice it. The ways in which the market will be negatively impacted by such negligence doesn't seem to bother them in the least. Perhaps it's ignorance, or maybe it's just selfishness, but either way, skewing the numbers is not good for buyers or sellers. How so? Because buyers are being led to believe that the market value is higher than it actually is while owners of similar houses are likewise misled about their own property’s value. I have seen countless examples of brokers knowingly overpricing houses that eventually sell, after a series of “price improvements”, for 20-30% below their original asking price. Additional misleading of the market comes when they advertise the closing: Although "SOLD" gets superimposed over original listing photos, actual closing prices are almost always omitted from the ad while the bloated original price remains. Accurate closing details should always be proudly reported by brokers in their ads to not only announce their accomplishment but to also educate the market in which they’re working.
An honest broker’s job is made much more difficult by shady brokers who habitually overprice listings and under-report results. They cultivate unrealistic expectations from sellers while reducing the participation of capable buyers. It's time for brokers to stop practicing the art of deception and start educating themselves and their consumers. The market will be a lot prettier when the players are finally guided by actual data rather than by vague deception. Mastering the art of bringing together buyers and sellers requires the scientific application of accurate data. The honest reporting of listing dates and prices, along with actual closing dates and prices, is a good place for brokers to start when striving to become master artists. The educated consumers in their market will eventually become their best customers. Only then can the real estate market reach it’s true potential.
