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Huh, that's not how it works. Sellers will sell to the highest bidder, regardless of where you're from. So buyers from richer markets win more auctions, displa
by frandroid 12y ago
Huh, that's not how it works. Sellers will sell to the highest bidder, regardless of where you're from. So buyers from richer markets win more auctions, displacing locals in a market where there is less wealth.
- Scoundreller 12y agoThat's great logic when you have 1 item for sale. However, when you have a large block of units for sale (1000 condos), and want to sell them as quickly as possible so that your construction financing gets approved (and you're probably worrying about a crash), you want to "price discriminate", which is to charge different prices for the same good. If rich overseas buyers will buy all 1000 at $500k each, then great, but if they want to buy only 900 and a local is only willing to pay $450k for 100, then take the 900x500k and 100x$450k, there's no need to let the overseas buyer know that you sold the same thing to a local for $450k.