Buyer + Seller = Market


Buyer & Seller… sounds like oil & water, right? But they coexist, as naturally as the seemingly opposite cactus spines & flowers.

Real property is always transacted at the right price for the buyer and the seller. The price is right for the buyer (achieves the desired objective of obtaining ownership) and the seller (it’s the price the seller is willing to accept).

In a completed real estate transaction, a done deal represents:

The right price for the buyer because it…

  1. is less than, or at least the equivalent of, what the property will generate in return,
  2. contributes to solution of a perceived need at the time of purchase,
  3. falls at, or less, than buyer’s maximum affordability.

The right price for the seller because it…

  1. culminates a desired investment goal compared with original acquisition,
  2. provides an exit from a property that is no longer desired, or possible to keep,
  3. is somewhere in between #4 and #5, and available alternative investments make disposition more attractive than not.

So when the ownership tells you they unwittingly paid too much to acquire the property, you will know that they may not have achieved #1, but they did achieve #2 and #3, making the price good enough to be called “market”.

The key to the right price: both buyer and seller agreed to it.