Sam Leesam lee
Real estate news is often put in the spotlight in the press. It is a subject that is both emotionally charged and highly technical, and is often overly politicized. Because of this, it can be very confusing to consume real estate related news, especially when it comes from so many different sources. As property agents, we have to keep a close eye on property news, and sometimes we come across two articles that are direct contradictions of each other. We also spot biases, exaggerations and charlatan propaganda. The reader of will realize the irony given that it is also a real estate related article, but I would urge you to look beyond this irony and think about how we can all become more intelligent consumers of property news.
The minority is not the majority
One common mistake we easily make is to generalize the actions or characteristics of a minority as that of the majority. We sometimes see general headlines such as “Macau Landlords Selling Off Their Properties”, when in reality only certain landlords who have properties in a certain area within a certain price range just happened to be selling. This error usually arises from bad sampling or selective sampling which distorts reality and can lead one to false conclusions. Even if the majority of a small sample of sellers are selling their homes, it doesn’t necessarily mean that the remaining sellers are.
Be wary of emotional language
Another point of caution for the intelligent consumer of media is to look out for emotional and bold claims and phrases. The use of emotive language is a very effective tool to catch your attention, and can sometimes lead you to make irrational financial decisions. This can be very evident in any magazine or article on the stock market where you will find both scare mongering and charlatan propaganda. One smart and easy trick to counter this bias is by rephrasing the title’s and headlines with simpler and more accurate descriptions and look out for dramatic words like ‘crisis’, ‘surge’ and ‘plummet’.
Read broadly, even if it hurts your head
Lastly, always apply some skepticism. Don’t rely on one source only but read from multiple sources. Have a devil’s advocate mentality and try to read from the opinions of people who work in the field and put their reputation behind their content, instead of just casual commentators with no skin in the game. Be skeptical and question what you read, starting with this article.
Sam Lee is a marketing manager and property consultant at JML Property. JML was established in 1994 and offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
www.JMLProperty.com
info@JMLProperty.com
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