The following example is a individual that has purchased a home near the ocean in Half Moon Bay,CA for 500,000 and has a swimming pool installed at a cost of $30,000 and then unexpectedly, their employer transfer them to another state causing the home to be put on the market for sale.
The price the seller lists the property for is $530,000, however after a reasonable amount of time, the best offer received is only $480,000 with the buyer stating that the pool is undesireable in that area due to the cool weather and they are actually offering a lower price because of the pool!
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- What principle applies to this situation?
- How might you have avoided such a problem in the first place?