My listing in Old Greenwich, located in Hillcrest Park, just sold in October 2008 for $1,525,000. With 1.11 acres of land and 4,500+ square feet, the buyers got a great deal. The sellers were happy to have a ready, willing and able buyer that could close quickly so they could move on with their plans. Everyone is happy. Could the sellers have gotten more money a year ago? Perhaps. An offer is not always about the money.

With all of the uncertainty in this market, there is great value in having an offer from a party that is able to carry through with their bid. What's the use in having a promise of more money from someone that may not be able to get a mortgage to seal the deal? Or what about the scenario where the buyer is perfectly qualified but the bank appraisal comes back short? If that buyer does not have extra cash to put down, the house will quickly be restored to its previous "available" status with a slight cloud over it. People might now wonder if it was something in the home inspection that went wrong or, now that an appraisal has been performed, the house must be overpriced. Mortgage commitments have been harder to come by with underwriting guidelines changing almost daily and reams of documentation required. Personally, I feel this is an over reaction to the current situation. The pendulum has gone from one extreme to another. While previously cash was practically thrown at unqualified borrowers, now persons with perfectly good credit and responsible financial histories are being turned down. I have confidence though that level heads will eventually prevail. A little self-examination of our spending habits and, therefore our priorities is probably long over due.