B. Caplan wrote:
"The company I'm buying a house from won't negotiate any part of the basic contract.
Why not? The dopey answer is "monopoly power" . . .I tend to think that the seller
just anticipates no gains to trade.
Ed Dodson then wrote:
"Purchasing a house is not quite like purchasing almost any other asset."
* * * * *
I cannot add to Mr. Dodson's concise outline of the regulatory and disclosure hurdles
that are intrinsicly part of a real estate transaction. To suggest that the seller
"anticipates" no gains to trade (with respect to contract terms) is only a partial
answer. In reality, the seller KNOWS that there are no gains to trade. They would
choose to walk away from the transaction rather than face the regulatory impact of
"negotiation". Only one party to that negotiation would win; consequently, there is
in fact no true negotiating scenario - there is no market for contract terms . . .and
there is no margin for contract terms. There is instead a market for boilerplate
homogenized disclosure . . . but in my mind, that's hardly a market at all.
New York, NY