Problem 163 House Closing You have entered into a contract t

Problem 16-3 House Closing: You have entered into a contract to purchase new house, and the closing is scheduled for next week. It\'s typical for some last-minute bargaining to occur at the closing table, where sellers often try to tack on extra fees. You have three options for closing: (1) attend yourself, (2) send an attorney authorized to close only pe the previously negotiated terms, or (3) pre-sign all the closing documents per the current terms and not attend the closing. Which of these would be the most advantageous from a bargaining postioin?

Solution

From the above given choices it would be logical to go yourself if the opportunity cost involved is too low.

The attorney will also take some money and will have to deposit the extra fees as well. So here comes the concept of opportunity cost.