Monday, October 29, 2007

Foward Looking Statements

A Calgary REALTOR posted about what to expect in terms of appreciation:

A client recently asked me about the Royalty Review, the current flat and depreciating market, and why I think prices will continue to increase in Calgary.

Here's my response.

In 2006 prices increased 37%

In 2007 ... to date ... prices have increased 24%. (Isn't this amazing ... the media is only speaking about the drop in prices.)

In 2008 prices WILL increase 12 + %.


I am concerned about the certainty in the uppercase WILL and that this was directed to a client. Consider that the REALTOR gains a commission for persuading a buyer but loses nothing if the forward looking statement turns out to be incorrect.

Fun video (course language): Always Be Closing

1 comment:

Radley77 said...

Hey, been reading your blog for awhile now! Great information and pretty funny.

As for forward looking statements, often what people do when their is uncertainty in estimates is they attach probabilities to each estimate ( 10%(upside), 50%(best guess), 90% (conservative) ).