Category: Realtors

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 […]

Brokerage’s baby bang

18 January, 2006 (09:21) | Brokers, Real estate, Realtors |

A while back, in giving a blog interview, I commented:   As a business, classical real estate brokerage is facing the kind of big-bang price drop that confronted stock brokers when Charles Schwab and others introduced first discount and then on-line brokerage. In real terms, fees are likely to drop, and the service is going […]

Hurricanes, insurance, and affordable housing

30 August, 2005 (10:23) | Hurricanes, Insurance, Property management, Realtors, Rental |

What does a hurricane do to housing, and housing affordability?  Major capital expenditures heading this way … The answer’s more complex than at first it appears, and reveals much about the nature of insurance.   Insurance is as necessary as finance to a functioning real estate market.  Yet the insurance business lives or dies on […]