13 April 2013: Let the Market Decide

     For the moment, the house that becomes a pending sale within ten days is subject to market consensus. Within one week, the seller receives multiple offers. Subsequently, the MLS listing for the house should publish a pending sale by the tenth day on market. In most cases, the time it takes escrow to close the transaction between buyer and seller is relatively short for a cash sale and 30-40 days long for a transaction involving a mortgage.
     Sellers like cash sales accompanied by few, if any, buyer contingencies as well as short escrow periods. Buyers like a bargain on a property with little or none of their hard earned cash used to fix issues the seller should have had the presence of mind to resolve long before going to market with the house.
     Sellers convert equity into liquidity, buyers convert liquidity into equity. On average, the conversion process costs sellers up to 7.5% and costs buyers up to 3.5%.  Invariably, parasitic loss accompanies the conversion of such capital. The real estate transaction process requires competent management of risks to principals' capital. Market makers bring principals together, representing the best interests of respective principals.
     Market makers thrive on parasitic loss to principals. Market makers function in the ether of perceptible realities. Market equilibrium decreases the parasitic loss involved in the transactional process of capital conversion. Market imbalance increases such parasitic loss. 
     Houses for sale in Pruneyard Dry Creek exhibit the challenging symptoms of a chaotic real estate market imbalance. For 2012, houses in this neighborhood sold for less than $500/sf. Current market offerings are $600-700/sf. However, the market decided that houses on the market more than ten days without offers meeting or exceeding the projected estimate of Pruneyard Dry Creek house values is incorrect.
     Two weeks ago, a particular house came on market that insinuated a nicer house on the same street was only worth $4,000 more for so much more. Both are rental properties offered by absentee owners, which is relevant to the context at hand. Neither rental property has sold within a week, which is a death knell for a listing subject to this current market dynamic.
    Ever so facetiously framed as a commentary on the reliability and validity of parasitic loss to incumbent principals, the house with the perceived value proposition- the one projecting a perceived savings of $4,000 for astute buyers- got a new price tag just in time for the weekend rush of panicked buyers with too much cash to burn. The price is no longer $795,000, but $695,000. Oh, what a bargain. Imagine the shock and awe of homeowners in this neighborhood when they hear the good news of a bargain in the making. Imagine the conversation between competent listing agents and their well-informed sellers when they discuss the discount affecting their own perceptible realities. 
     To my neighbors contemplating the idea of putting your family home on the market, choose a real estate professional who prices market offerings correctly and facilitates real estate transactions effectively and efficiently, without the smoke and mirrors. To my future neighbors contemplating the idea of making the Pruneyard Dry Creek neighborhood your hearth and home, seek out a real estate professional who will represent your best interests by informing, educating, edifying, and inspiring you to do so rationally. 

In a word, innexussis.