Good decisions in the real estate industry are based on facts. Facts come from many sources (such as government, consultants, proprietary, …) but not all facts are equally important. Some facts would have a big effect if they changed while a change in other types of facts have little to no effect. This posting notes that some facts are unimportant because, even if they were to change, it is not clear whether the change is real or random. Randomness introduces another reason to attach weights to facts.
In part, the importance of a fact depends on how much you can rely on it. Facts as numbers are more reliable since (mostly) they are governed by the rules of statistics. Facts as words are more slippery since the reliability of the fact depends on who is saying it and on whether the words can mislead. Weighting facts is a way to recognize these considerations. Continue reading