Category: Brokers

The ratchet games: Part 3, How many times?

9 May, 2014 (09:00) | Auctions, Brokers, Escalation clause, Homeownership, Innovations, Markets, Principal-agent risk, Realtors, Sales, US News |

[Continued from yesterday’s Part 2 and the preceding part 1.] By: David A. Smith By now it’s evident that the escalation clause in a home-purchase offer, described by Jay Fitzgerald in a good piece for the Boston Globe (April 13, 2014), is at best a double-edged sword for sellers and buyers, opening a new subgame […]

The ratchet games: Part 2, Promising to top?

8 May, 2014 (09:00) | Auctions, Brokers, Escalation clause, Homeownership, Innovations, Markets, Principal-agent risk, Realtors, Sales, US News |

[Continued from yesterday’s Part 1.] By: David A. Smith Yesterday Part 1 used a Boston Globe (April 13, 2014) article by Jay Fitzgerald to report on an innovation by eager home buyers to gain an advantage over other home buyers: the escalation clause, where a bidder proposes being given a ‘last-best-topper’ right to top any […]

The ratchet games: Part 1, An escalating edge?

7 May, 2014 (09:00) | Auctions, Brokers, Escalation clause, Homeownership, Innovations, Markets, Principal-agent risk, Realtors, Sales |

By: David A. Smith Though markets are places where eventually the trade shows the truth about what people value, the pre-sale maneuvering is a game without rules, where anything goes – so there is no one right way to sell an item, and no one right way to buy it, and when the balance of […]

It’s not the fee, it’s the split

6 July, 2012 (10:09) | Brokers, Consumer protection, Disclosure, Home sales, Homeownership, RESPA, Supreme Court |

By:David A. Smith   Any time we do something infrequently that others do every day, we’re at an information disadvantage that the experts can exploit against us – that is, if they’re unscrupulous.    Don’t judge a crook by his painter? Todd White’s The Unscrupulous   All consumer-protection statutes thus take as their basis the […]

Month in Review, March 2011

20 May, 2011 (10:08) | Admin, Apartments, Brokers, Cities, Demographics, Markets, Month in review, Municipal finance, New New Orleans, Predictions, Speculation, US News |

By: David A. Smith   [Previous Months in Reviews available here: [Feb 11, Jan 11.]   The month’s highlight was my unequivocal prediction, bold or foolish as it will prove to be, that we have reached the hard bottom:   Make it so?   The US single-family residential market has hit bottom.  You read it […]