I'd like to add that there may be a rational reason to pick a rich real estate agent - reducing counterparty risks.
Before I started working with contracts I assumed that the wording in the contract determined the outcome if one side failed to deliver. Not so! The contract merely sets out the starting point for the next round of negotiations...
The reality is, if the counterparty fails to deliver due to negligence or any other reason, the contract (or even just common law) would entitle you to compensation and damages, or a refund at the least. However, if the counterparty fails to refund you or pay you compensation citing a lack of funds, what can you do? Even if you take them to court, and the judge sides with you, if they truly lack money, they cannot pay you what you are owed. This is what happened to me, with them owing me $13,000...
This means if you sign a contract with someone on low income and with low assets, your contract is effectively worthless, because you can't enforce any terms on that contract.
Obviously it is not feasible for you to check their tax return and bank account before signing a contract with them. However, if they own a luxury car, this allows you to evaluate their financial position by proxy - you can assume that a bank would have inspected several year's worth of tax returns and assets before issuing them a loan to purchase the car. If the bank is willing to risk their money on this person, then maybe this gives you a bit more confidence as well.
And of course, they may try to cheat by leasing a luxury car rather than owning one, etc. But that's why the portrayal of wealth is the full package - the suit, the shoes, the watch, and if one part of the facade doesn't pass muster, then people will get suspicious and lose confidence in them.
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This also explains some paradoxical behavior where when one party is at an information disadvantage, it can be beneficial to bring a 3rd party (usually a bank) to a transaction even if the bank wasn't needed. Shareholders may prefer the corporation fund a big expansion project through debt rather than retained earnings, because the bank will have its team of analysts pore through the financial projections to determine if they are willing to risk their money on it. A potential homeowner may prefer to get a mortgage when building a new house with a builder rather than paying for it with their own cash, because they know the bank will do their own due diligence on the builder and the building process since it is the bank's money at risk if the builder fails to deliver.
(I just generally like finance, not many people are enthusiastic about it so I am using this as my outlet if you don't mind haha)
This has echoes of the great book 'The Millionaire Next Door'. Flash doesn't really equate to actual reality. I've personally met people worth between 10's and 100's of millions of dollars in both business and casual settings. The richest and most tolerable were those that just don't care about the trappings. You'd have no idea that they were wealthy if you ran across them in the store. The car might be a tipoff but that's about it.
Nice art and insights as always!
I'd like to add that there may be a rational reason to pick a rich real estate agent - reducing counterparty risks.
Before I started working with contracts I assumed that the wording in the contract determined the outcome if one side failed to deliver. Not so! The contract merely sets out the starting point for the next round of negotiations...
The reality is, if the counterparty fails to deliver due to negligence or any other reason, the contract (or even just common law) would entitle you to compensation and damages, or a refund at the least. However, if the counterparty fails to refund you or pay you compensation citing a lack of funds, what can you do? Even if you take them to court, and the judge sides with you, if they truly lack money, they cannot pay you what you are owed. This is what happened to me, with them owing me $13,000...
This means if you sign a contract with someone on low income and with low assets, your contract is effectively worthless, because you can't enforce any terms on that contract.
Obviously it is not feasible for you to check their tax return and bank account before signing a contract with them. However, if they own a luxury car, this allows you to evaluate their financial position by proxy - you can assume that a bank would have inspected several year's worth of tax returns and assets before issuing them a loan to purchase the car. If the bank is willing to risk their money on this person, then maybe this gives you a bit more confidence as well.
And of course, they may try to cheat by leasing a luxury car rather than owning one, etc. But that's why the portrayal of wealth is the full package - the suit, the shoes, the watch, and if one part of the facade doesn't pass muster, then people will get suspicious and lose confidence in them.
---
This also explains some paradoxical behavior where when one party is at an information disadvantage, it can be beneficial to bring a 3rd party (usually a bank) to a transaction even if the bank wasn't needed. Shareholders may prefer the corporation fund a big expansion project through debt rather than retained earnings, because the bank will have its team of analysts pore through the financial projections to determine if they are willing to risk their money on it. A potential homeowner may prefer to get a mortgage when building a new house with a builder rather than paying for it with their own cash, because they know the bank will do their own due diligence on the builder and the building process since it is the bank's money at risk if the builder fails to deliver.
(I just generally like finance, not many people are enthusiastic about it so I am using this as my outlet if you don't mind haha)
This has echoes of the great book 'The Millionaire Next Door'. Flash doesn't really equate to actual reality. I've personally met people worth between 10's and 100's of millions of dollars in both business and casual settings. The richest and most tolerable were those that just don't care about the trappings. You'd have no idea that they were wealthy if you ran across them in the store. The car might be a tipoff but that's about it.