Monday, August 24, 2009

Are home sales doing better, or worse - part two


Monica Gagnier links to a post by Chris Palmeri that includes the following:

A couple of weeks ago I put in an offer on a three-bedroom, bank-owned home in Pomona, California, which is about a half hour east of Los Angeles. The house was listed at $144,500. I offered $145,000. My offer was accepted this week. I was told there were two offers above mine, including one at $180,000. How did I win? I offered to pay cash.

But there was a little wrinkle - Palmeri (and Gagnier) work for BusinessWeek.

A week ago I would have been happy as a clam my offer was accepted. Every bit of analysis I did showed this was just a screaming deal. But on Monday I learned that our parent company, McGraw-Hill, might sell BusinessWeek. Suddenly my future job prospects looked less certain. From an investment standpoint this purchase made perfect sense, from an emotional one? I withdrew my offer. Time will tell if I was prudent or just chicken. You can be both, I believe.

Consumer confidence won't be that high when your own job is on the line.

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