The Wild World of Real Estate: The Eternal Search for Idiotic Sellers and Stupid Buyers

In continuing their Award-winning series on commercial real estate as recently recognized by the Azerbaijan Academy of Arts and Sciences, Adam and Jeff discuss the sad fact that there are not very many sellers who seriously underprice their properties.  Unfortunately, there is also an acute shortage of stupid rich buyers who will happily overpay for any nondescript piece of real estate.  Because both sides tend to arm themselves with financial and legal advisors and other buzz-killers, the parties to any commercial real estate transaction have to be willing to be realistic about the value of the property they are trying to exchange.  Jeff points out that real estate--unlike stocks or bonds--is a tangible asset that will not typically lose half its value in a single day.  But real estate is also illiquid and cannot be easily hidden from the view of nosey revenue agents.  Adam and Jeff also point out that they type of real estate you want to own depends on your own risk tolerance and your need for higher income.  The lower the risk, the lower the return.