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Editor,
I read “Homes have been selling as much as 20% over asking price in these 3 Peninsula cities” in the March 15, 2024 issue of The Almanac by the Silicon Valley Association of Realtors.
Is it ethical to offer, or to accept more than the “asking” price to buy or rent a home? It seems to me, the prospective buyer/renter is exemplifying a sense of fear, doubt, distrust, insecurity, maybe desperation when he offers more than the “asking” price. The one who accepts the extra money is expressing greed, pride, self-glorification, lack of humility meekness, principle, self-control. Both buyer and seller are expressing dishonesty. This puts more people on the street.
What are the qualities we are looking for/see in a “HOME?” Completeness, wholeness, security, purity, comfort, harmony, joy, happiness — to name a few. Maybe we should be more trusting, like children. They don’t always know where their home will be, but they KNOW they will be provided for in a way they understand. When we all open our thought to the infinite spiritual qualities of “HOME,” housing will be more available and affordable for all.
Jackie Leonard-Dimmick
Walnut Avenue, Atherton
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Jackie Leonard-Dimmick – Good comments and I understand where you are coming from. But literally every homeowner in the Bay Area is already accepting considerably more for their homes than can be rationally explained and that’s particularly true in your hometown of Atherton. Ask someone from, say, Tyler, Texas, and they don’t understand how a worn-down, 60 year old, rickety, 1,500 square foot home in Palo Alto is worth $5 million. I presume you do.
Prices are determined by a willing buyer and willing seller who agree on a price they are willing to accept or pay. They are, of course, heavily influenced by the intersection of current supply and demand. I won’t insult you with examples because we live it every single day with every product or service we willingly purchase whether it’s gasoline, a meal at a restaurant or a new home.
If you are selling your home and “asking” $2 million and a buyer comes along and says I’ll give you $3 million, you’d be a fool not to accept it. It’s not greed, it’s just the agreement on price between the two willing parties. The same logic applies when a seller asks $2 million but ends up accepting less – that’s the deal they are willing to accept.
And based on the transactions I described, the next home seller and home buyer will adjust their expectations accordingly.
It’s called the market.
You are a little unclear on contract law. What is called “offering” a house for sale isn’t really that. It is just a suggestion from the seller. The offer comes from the prospective buyer(s). It can then be accepted, rejected or counteroffered from the seller. A buyer can’t accept the “offer” made by the seller to the general public and buy the house for the “offer” price.