Distortions in the Market

Today we are examining distortions in the market. These distortions result in many sellers putting a property on the market and asking too much for it. But you can’t blame the seller. They are simply trying to maximize their profit. Distortions in the market are everywhere. One of the biggest contributors is lack of knowledge. There is a fallacy that if a single property sold in your immediate area for $100,000 more, your property is now worth $100,000 more. That's not the case. You need sustained averages. The problem arises when you're dealing with a small number of transactions. There isn't enough data to create a statistically valid average. What do you do?