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Re: [at-l] Saddleback
5) His asking price for the property is well above the fair market value. >
Then tricknee twinkled with:
If the land were yours, would you just give it up or would you try to get as
much out of it as possible like more than 99% of us would.
And Sloetoe jumps into the fray with:
Economically speaking (which you are seeking to do), it is inefficient
to hold an asset which does not gain in realized value at the same
speed as other obtainable assets. Efficiency (translated: "common
sense") dictates sale of the lesser appreciating asset for the
greater. Sell the land, buy a couple of T-bills.
As the owner (Dan H?) has had the property on the market for a
reasonably valid stretch of time that potential willing buyers might
have bid for it and competed with themselves (according to their own
expectations and valuations) by bidding up the price, but the owner
has not yet sold it for the "asking price," economic logic dictates
the asking price be lowered, and the market be resampled. This is
repeated until such time as the overall market produces a willing
buyer; then a deal is consumated. By not following this simple
procedure by lowering the asking price, the owner indicates that, for
whatever reason, he is not willing to respond to the market's (lesser)
valuation. It's that simple.
Translated? "99% of us would get a clue."
(glad, on occasion, to use all that econ....)
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