I once lived in a community with mature trees, decent landscaping, and a river with wood pedestrian bridges running through the middle of the property. We had excellent access to large roads, zero traffic issues, and a great location. Despite these amenities, units sold for tens of thousands of dollars less than other comparable communities nearby. How could this be?
The answer is simple if you agree that value is an opinion that becomes tangible only when an agreement between buyer and seller is made. Ultimately, value is in the eye of the beholder. Sellers within the same community compete against each other for the buyer. This is natural of course, since sellers normally have no relationship or obligation to the other. I am no scholar or game theory, but I am of the opinion that this situation is detrimental to the community and the sellers. Is it not possible to compete with other communities instead of one another?
When a real estate developer markets a new community to prospective buyers, his competition is another community, not himself. Although difficult, if the community can coordinate with their sellers, they may be able to influence supply. Difficult, yes but I still think possible, especially in smaller communities.
