| HBS Case Collection
This case presents an ethical choice: How should a prospective buyer respond when a homeowner quotes a price that the buyer knows is significantly below market value? The case describes a private transaction in which the prospective seller is fully competent mentally but is apparently uninformed about current market prices. The buyer could agree to the asking price (or even counter with a lower figure) without taking any financial risk, because he or she could obtain appropriate guarantees of good title, absence of environmental problems, and so forth.
Risk and Uncertainty;
Real Estate Industry;
Wheeler, Michael A. "Lakeside." Harvard Business School Case 902-104, November 2001.