{"id":550,"date":"2006-10-17T19:19:42","date_gmt":"2006-10-18T02:19:42","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=550"},"modified":"2007-07-16T21:10:11","modified_gmt":"2007-07-17T04:10:11","slug":"smashing-the-idols-understanding-market-value-in-full-context","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/550\/smashing-the-idols-understanding-market-value-in-full-context\/","title":{"rendered":"Smashing the idols: Understanding market value in full context . . ."},"content":{"rendered":"

Nominate me Ikonoklastes, for I am come to raze this temple of half-baked ideas. I want to come back to the MLS later in the week, and I have a deep need to expose the motivations of brokers, as these are distinguished from the motivations of lesser licensees. But for now I want to take on the idea of market value.<\/p>\n

Jeff Brown, whom I admire without limit, asks of me<\/a>:<\/p>\n

I’m still wondering though about the apparent premise underlying your argument that says the buyer pays everything.<\/p>\n

That premise is this: That somehow the market value of the home is controlled by something other than supply\/demand, and the other factors of which we’re all aware. Would you please clear this up for me?<\/p><\/blockquote>\n

There are actually two different issues on the surface there, and there is still a third issue buried in the underlying premises.<\/p>\n

First things first: In every economic transaction, unless the seller is taking a loss — or unless the seller pays for something outside of the transaction — the buyer pays for everything. This is true of anything that can be bought, and it is why — in every business except real estate — the buyer is given the red-carpet treatment. The seller (of anything) brings the value to be sold, but the buyer brings every dollar of the money, and every dollar that is disbursed to the seller and to any other involved parties is disbursed from the buyer’s pile of dollars.<\/p>\n

In real estate, we make believe that the money is first transferred to the seller and then instantaneously distributed to the other parties, but this is a sleight of hand we effect in order to get the sales commissions past the lender. It might once, historically, have described a sequence of events, but even then the activity was a pantomime.<\/p>\n

The seller does not cause the sale by claiming to pay for it. The buyer causes the sale, and no uncoerced sale ever happened until<\/i> the buyer caused it.<\/p>\n

Moreover, nothing in the laws of god or man ever prevented a seller from paying sales commissions out-of-pocket, in advance, instead of Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nominate me Ikonoklastes, for I am come to raze this temple of half-baked ideas. I want to come back to the MLS later in the week, and I have a deep need to expose the motivations of brokers, as these are distinguished from the motivations of lesser licensees. But for now I want to take […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[3,4,6,5],"tags":[],"class_list":["post-550","post","type-post","status-publish","format-standard","hentry","category-blogging","category-disintermediation","category-marketing","category-real-estate","no-featured-image"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7986,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7986\/technologys-challenge-understanding-how-cats-part-with-skins\/","url_meta":{"origin":550,"position":0},"title":"Technology’s Challenge: Understanding How Cats Part with Skins","author":"Thomas Hall","date":"April 20, 2009","format":false,"excerpt":"Several recent posts have had me thinking about just how technology isn't addressing the needs of cats.\u00a0 Needless to say, there are many different types of cats - cats that roam alleys picking through the remnants of fish bones versus the ones that eat Fancy Feast and sit on the\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/biology.clc.uc.edu\/fankhauser\/Labs\/Anatomy_%26_Physiology\/A%26P201\/Cat_Skinning\/Lines_to_cut_PA300152.JPG?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1699,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1699\/testing-the-starpower-premise-is-success-contagious\/","url_meta":{"origin":550,"position":1},"title":"Testing the StarPower premise: Is success contagious?","author":"Greg Swann","date":"July 25, 2007","format":false,"excerpt":"A tuxedoed Russell Shaw holds forth at the newcomer's reception at tonight's opening session of the StarPower Conference. An important principle of the StarPower method is the idea that success is contagious, that highly-motivated Realtors can hoist themselves to the next level not just by learning new skills and techniques,\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":719,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/719\/strong-coffee\/","url_meta":{"origin":550,"position":2},"title":"Strong coffee","author":"Richard Riccelli","date":"November 30, 2006","format":false,"excerpt":"Thinking about your lawn signs and listings and your picture on your card.** Thinking about where you can find ideas and inspirations that will cause buyers to come to you instead of the other guy.From time to time, I'll introduce you to people from my world who have influenced my\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5709,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5709\/rethinking-real-estate-web-20\/","url_meta":{"origin":550,"position":3},"title":"Rethinking Real Estate Web 2.0","author":"Thomas Hall","date":"November 20, 2008","format":false,"excerpt":"What do consumers want? I believe this question has been asked ten times to Sunday as it relates to real estate. I recently read Marc Davison's recent blog post at 1000Watt Blog summarizing the results of that exact question, What do Consumers Want?.\u00a0 The report, commissioned by Keller Williams, was\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":262,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/262\/greg-swann-can-be-an-insufferable-bastard-sometimes-but-that-doesnt-mean-hes-wrong\/","url_meta":{"origin":550,"position":4},"title":"Greg Swann can be an insufferable bastard sometimes — but that doesn’t mean he’s wrong . . .","author":"Cathleen Collins","date":"August 28, 2006","format":false,"excerpt":"Okay. I'll admit it: Greg is more efficient than I. Of course, that will surprise no one. He is able to communicate great big ideas with an economy of words... prolifically. While I have to sweat out each word, then use too many to get my point across. Sweat might\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":420,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/420\/blogoff-post-43-the-owner-who-blocks-his-own-sale\/","url_meta":{"origin":550,"position":5},"title":"Blogoff Post #43: The owner who blocks his own sale . . .","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is from my Arizona Republic column:I love this one: Not only is the home I'm showing occupied, the seller is right there. Blocking the doorway. Hovering over the buyers. And smoking -- inside the house. It's rare to find a seller this talented at obstructing the sale of his\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=550"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/550\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}