RE: This gets to part of the problem.I have some shreas I will sell you, but you can buy them cheaper in the market. I value them more than the market (i.e. my alpha > 0). I adjust my value according to market conditions, and it might be that tomorrow I will value them far below going market value.Homes are valued this exact same way. If I offer someone enough cash, they will move right away. Well, not all sellers, as we have seen high offers that people have refused. Remember the very old lady in Ballard? There is a chance that someone is willing to pay a very, very high price. We just need to find the right buyer. If you disagree with this basic analysis, let me suggest this: There is some slim chance that Gates will want to buy a given property. Some small chance that's all I need. However it might not be worth the sellers time and effort to try and find that buyer, it could take too long.The ultimate question is when to accept an offer. Listing price: $100,000. Offer $95,000. Expectation of sale in reasonable time suggests that $100,000 is a fair price. The 5% discount is for a sale today. Possibly someone would want to wait for the full $100,000? But what if the expected value is $10,000 too high? It might be $5,000 too low. Counter offer is what many agents suggest, but that is a decline of the first offer. Is it worth the risk? Rate this comment: 0 0

by Adriana 12:07:36 AM 2012.11.02