
Why The Math Doesn't Add Up
Numbers don’t lie.
The highest offer is always the best.
That’s what we’re taught. That’s what spreadsheets, market comps, and advisors remind us.
But when it comes to real estate—especially selling a home—math is only half the equation.
Morgan Housel put it perfectly:
“Attempting to distill emotional and hormonal humans into a math equation is the cause of so much frustration and surprise in the world.”
I see this play out every day in when speaking with property owners.
On paper, a seller should always take the highest offer, right?
Bigger number, bigger win.
But that’s not how humans operate.
We don’t make decisions in a vacuum.
We make them with a lifetime of experiences, pressures, and emotions influencing every step.
As a successful investor, I don’t just focus on the numbers; I focus on the why behind a seller’s decision. What I've learned over the years is that if you understand a seller’s true motivation, you can craft an offer that isn’t just about the highest dollar amount—it’s about solving their unique problem.
I remember the very first property I flipped. The property had been a rental for many years and the seller had become a "tired landlord". She have moved out of the area and the property had become more of a headache for her.
For that seller, my As-Is Cash Offer eliminated all the possible negative outcomes and expenses of selling the property on the open market.
Sometimes, a fast closing is worth more than an extra $10-20K.
Sometimes, avoiding the hassle of showings, repairs, or uncertainty is priceless.
Sometimes, selling to someone they trust, rather than a faceless offer, makes all the difference.
Based on all the deals I've negotiated, I've learned that sometimes getting creative with terms other than price or closing date are what a seller is looking for.
One deal comes to mind where the seller needed to pay his ex-wife $75,000 in order to have her sign over the deed to him. I brought in a private lender to provide him a short-term loan for the $75,000.
The seller received the loan on Wednesday and the ex signed the deed over to him. With the ex-wife off the title, I executed my purchase contract and purchased the property on Friday.
I solved the seller's cash problem and got him out from under and situation that was stressing him out. He was able to take his proceeds and move to Florida and leave his troubles behind him.
The private lender was also thrilled with the idea of lending out $75,000 on Wednesday and getting paid back $82,500 just 48 hours later.
When agents, new investors, and friends/family only look at the numbers of a deal, they always struggle to understand why a seller would take so much less.
To be honest, I asked WHY? at the beginning of my investing journey as well.
After speaking with hundreds of sellers, I learned that the WHY? is personal and unique to each seller.
They usually provide their WHY? to me and with that knowledge, I present a variety of options to a seller so they can evaluate them and determine which makes most sense for their specific situation.
If they choose the As-Is Cash Offer ... it’s not less to them—it’s just a different kind of value to them.
So when you hear me talking about my deals and scratching your head, wondering why the seller doesn't hold out for the highest offer, remember this ... real estate is never just about real estate.
It’s about people. And people don’t fit into equations.