At 04:11 PM 7/16/2008, Sean Linkenback wrote:
From: MoPo List [mailto:[EMAIL PROTECTED] On Behalf Of
Craig Miller
You buy a house for $200,000. You pay taxes on the sale of
$16,000. You buy a home warranty at the same time, through
the realty company, for $1000. You've now paid $217,000.
You wrote a check for $217,000.
What is the value of the house?
Now what if you find out that the Real Estate company got a
commission from the home owners and that the owners received less than $200K.
What's the value of the house? What if the home was listed for
$220K, but they accepted 200K, What if you sold the house the next
day for $240K, what if a bear was walking in the woods, what if you
find out Elvis slept in the house, Etc. etc., etc
What the owners pay brokers is no more a reduction of the value
of the house than what the buyers pay as BP to the auction house.
Different brokers/realtors charge different commissions; a sale by
owner has no commission. Some auctioneers charge different
amounts of BP. A direct sale charges none. Bruce H. charges
none. It's a variable cost-of-doing-business. It isn't part of the
value of the poster or house.
This is Economics 101.
Craig.
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Craig Miller Wolfmill Entertainment [EMAIL PROTECTED]
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