As you will soon find out, many property owners are fervent believers in what is rightfully called the greater fool theory. The greater fool theory is based on the inane assumption that so-called investors who make bad buying decisions will eventually be able to pass their blunders on to bigger or greater fools who will unknowingly buy them out at an equal or greater price than what they paid. And believe me, owners with this mindset have an extremely hard time accepting reality-based logic. The greater fool theory is exactly why, initially, many property owners have unrealistic expectations when it comes to what their property is really worth in its current condition. They fail to grasp why people like me are not willing to bail them out of their financial fiasco and simply pay them what they overpaid for their property. So, during the early stages of negotiations, the favorite expression of most reality-challenged property owners is: "Surely you do not expect me to sell you my property for less than what I paid for it?" My retort to this response is always the same: "If I do make you an offer, it will be based strictly on what I estimate the property to be worth today in its current condition, and not on what you paid for it!" I say this so that owners know right from the get-go that I am not going to play the role of the greater fool and subsidize their adventures as real estate investors. At this point, owners either become realistic and negotiations continue, or they hold out for their greater fool in shining armor, and I give them my business card and move on to the next potential option property.
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