Falling prices? Coming soon to the company you want to sell or buy?
November 20, 2021
by a professional from University of Southern California - Marshall School of Business in North Palm Beach, FL, USA
Will what's occurring with real estate values migrate to pricing SMBs? "Housing Market Shows Cracks With Price Cuts in Pandemic Boomtowns"
"No city exemplifies the mania of the Covid-era U.S. housing market better than Boise, Idaho, where prices have surged by more than 30% in the past year. But in a sudden reversal, buyers are now the ones with power. The result: Prices are running up against the reality of local economic fundamentals."
Hmmm . . .
Anyone want to comment?
from Wesleyan University in Granville, OH, USA
I suspect SMB buyers are typically more selective and more knowledgeable about the asset than the typical homebuyer. There's also a fundamental qualifier with businesses transactions - ROI, in whatever form you want to calculate it. A home purchase mostly rests on non-quantifiable preferences. Outside of large cities there is rarely a deep pool of truly comparable properties. Even in Manhattan, probably the densest real estate market in the country, I found this true. I paid more for a great view, new building, and walking distance to work. There were certainly lower cost but otherwise similar places nearby that I passed up. I wouldn't go about it the same way if I were buying a business and I don't advise clients to overpay because they just love the industry, location, or office design.
from Massachusetts Institute of Technology in Los Angeles, CA, USA