is it just me?

Thursday, May 15, 2008

 

supply and demand

I actually have a degree in economics. I don't use it, and I am not sure how I ever convinced anyone to give it to me, but there you have it. Anyway, I remember practically nothing from my studies, but I DO know a thing or two about supply and demand. Let's take the case of my house. Supply is low, there is just one like it. Demand, apparently, was very high and lots of people wanted to buy it from me. Which means 1) I get to set the price and as long as someone will pay it that price is not too high, and 2) buyers, that means I have what you want. These two facts did not prevent either of the following:

1) A guy I worked with asked if I had sold my house. I informed him that I had. He was surprised, and asked if I got my asking price. I informed that I had gotten higher than asking. He, a professional economist who ostensibly teaches impressionable young minds about economics says, "I can't believe you charged such an ungodly amount of money for your house." Um...interesting. I mean, I guess it is fair to say that you are surprised that someone was willing to pay that, but he said it in such a tone that implied it was somehow my fault that someone paid me a lot for my house. So I mentioned this to my boss thinking for sure he would back me up on the whole "the house is worth whatever someone will pay for it" thing, and he said "Yeah, I think it's pretty ridiculous too. But I guess if you want to take people's money that's capitalism." WHAT?! I finally actually follow economic law and now am being criticized for it? Was I supposed to sell my house for a cheap price to be nice? Or so people would feel like they got a deal? Um, no. I am supposed to take advantage of the fact that I have a good product, and charge lots of money for it. Duh. Just ask Apple.

2) Someone called me yesterday to ask about the house. She says she is very interested, and will I please call her back. Then her husband calls. He will be easier to reach. They are very interested. Please call back. Then the wife calls AGAIN (all of this during work hours, so it should be no great shock I am not at home) and says (to recap) that she called and her husband called and they are very interested. Please call back. Hold on. Just to be clear - you're interested in the house? And you want me to call back? OKAY! So, I did. And I told them the bad news which is that I already sold the house. I said of course these things can fall through and we should know in 3-4 weeks, and I would be happy to put her name on the list of people to call if it does. (Seriously. I have a running list of people to call if the sale falls through. Despite my avariciously high price and shameless capitalism.) I explain we are not currently giving showings because, well, the place is sold. Then she starts being mean! She asks me "How am I supposed to know if I am interested if you won't show it?" And I thought 'I don't really care if you're interested.' I ALREADY SOLD IT. And I turned down someone who offered me more than I was asking. So, not only do I have what you want, it's not even available to you. And yet, somehow, I am in the wrong? She asks if it would be possible to just offer more, and I think the answer to that is no. Legally, now that I have told these other people I will sell it to them for the price offered, I am not allowed to change my mind. A drag, perhaps, but there you have it. So, she acts kind of disgusted and tells me I can call her if something happens. Wow. That's so nice of you. Thanks for playing.

Comments:
Wisco, you live around and work with some very odd people. Write about them some more, kay? You money-grubbing capitalist, you.
 
This warms my little libertarian heart. Congrats on getting as much as you could. Professional economists aren't necessarily pros on human nature I suppose.
 
this is why Madison is just too damn liberal for the rest of the world. Selling your house above asking price is just the way it's done in the Bay Area, or rather, the way it used to be done before the housing crisis occurred. I say in these troubled housing times your boss should be giving you a medal for doing what is essentially the impossible.

Glad you liked LA. See, we're not all that in the Southland.
 
I am pretty sure that everyone around me is conspiring to slowly drive me insane. it's totally working.

also, I forgot to mention that the crazy people that called three times yesterday said "tell me about your house". I really think they had not even looked at the pictures online, which explains why they didn't see the "accepted offer" note on the listing. but seriously, you are going to harass me before doing any more serious research than, you know, driving by?
 
I've been outraged about this all day. There is nothing generous or kind about selling your house at below the market value. Sure, the person who buys it benefits. But then by definition there's also someone else out there who wanted to buy the house at market value- who wanted it more than the person you sold it to- and didn't get to buy it. Selling your house to the first person isn't very generous or kind to the person who wanted it more, but didn't get it, right? Grrrr!
 
ummmm why WOULDN'T you get the most $$ you could for your house?? not your fault some poor sucker is going to fork over their firstborn, now is it??

Congrats to you- what a big relief!
 
ben and becky - my sentiments exactly! The whole notion that you would intentionally sell something for less than someone else will pay for it makes no sense. None at all. I am still baffled. I pointed out to someone that had I used said logic on my econ 101 exam I would have failed. The good news for me is that I was clever enough to get them all to bid against each other and will now happily walk away with a handsome profit. So put THAT in your pipe and smoke it.

Oh, and if I had sold it to the first people who offered to buy it I would have gotten $25K UNDER my asking price. Yes, that's right - a $35K spread. Nice try though. The only ones who didn't win here are the nice people who upped their offer to more or less match my winning offer and still didn't get the house. I feel bad for them. I hope they find a nice place to live.
 
Post a Comment

<< Home

Archives

April 2005   May 2005   June 2005   July 2005   August 2005   September 2005   October 2005   November 2005   December 2005   January 2006   February 2006   March 2006   April 2006   May 2006   June 2006   July 2006   November 2007   December 2007   January 2008   February 2008   March 2008   April 2008   May 2008   June 2008   July 2008   August 2008   September 2008   October 2008   November 2008   December 2008   January 2009   February 2009   May 2009   June 2009   July 2009   September 2009   October 2009   November 2009   December 2009   January 2010   March 2010   April 2010   May 2010   June 2010   November 2010   June 2011  

This page is powered by Blogger. Isn't yours?