In this video Craig explores how to buy a home while considering the bell shaped curve.
Definition: A symmetrical bell–shaped curve that represents the distribution of values, frequencies, or probabilities of a set of data. It slopes downward from a point in the middle corresponding to the mean value, or the maximum probability. http://dictionary.com/browse/bell-curve
The curve affects us all. In purchasing real estate, it’s something to consider yet it’s rarely, if ever, spoken about or taught on.
When looking at the bell curve, and relating to the definition, what we see, in a “set of data” relating to real estate sales, is the “distribution of values, frequencies, or probabilities of a set of data”. In other words… what size, price, and how quickly homes are selling the most as it relates to a geographic area. We might consider that area to be within an entire Nation, or State but for the investor or home buyer who is going to live in their home, I recommend that they stay hyper local. Sometimes that area can be a whole city, other times it can be a section of a city to stay with the hyper local thought process.
Why is that data important to a home buyer?
This strategy helps protect the owner from market fluctuation because no matter where we are, in the market cycle, you have the bulk of the buyers that are out there shopping. That’s because you bought where most buyers were buying. As you’ll see, in the video below, buying in the top of the bell (where most of the sales occur) will ensure you have more people to sell to, when you want or need to sell… no matter where the market is in its’ cycle. Explore how the market cycles, in this post.
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