Avoiding Simpson's Paradox!

Avoiding Simpson's Paradox!?

In assessing the market value of your current home, it's crucial to consider specific factors such as the property type, location, and unique features it possesses. This tailored approach is key to avoiding Simpson's Paradox, a statistical phenomenon that can distort insights when aggregate data is not carefully analyzed.

Media-reported real estate statistics and general market figures often fall prey to distortions caused by:

- Inclusion of diverse property types like detached, linked, semi-detached, townhouses, and duplexes in the same dataset.

- Comparison against larger geographic areas that may not precisely align with your home's location, such as city-wide, provincial, or federal statistics.

- Incorporation of homes of varying sizes and conditions.

To obtain the most accurate evaluation of your home's value, the recommended course of action is to commission a Market Analysis conducted by a professional real estate sales representative. This approach involves a detailed examination of the specific attributes of your property.

As realtors, it is our responsibility to stay connected with past clients and emphasize the potential inaccuracy of media statistics in relation to their unique properties. This underscores the importance of follow-up activities, including personal visits, to ensure that clients are well-informed about the true value of their homes.