Value has no form and substance in and of itself it is purely a mental concept existing only in the minds of the person. The measure of the so-called value of a thing is the degree of sacrifice which one will make in order to acquire control of the use or ownership of that thing versus the personal concept (on the part of the person conveying that control) of the degree of benefits being given up. Sacrifice and benefits may be described In terms of money, time, promises, peace of mind, pride or any number of other concepts. To a disinterested bystander, there may seem to be no reasonable relationship between the sacrifice made to acquire and the benefits surrendered by conveying. On the other hand, to the acquiring and conveying parties, the relationship between sacrifice made and benefits acquired will be perfectly equitable.

In terms of the value or cost of our time, typically we apply the principle of the Economic Trilogy to determine the "True Cost" of Time. Let me explain. In High School Economics 1A, we are first introduced to the principal of Economic Trilogy (Utility, Choice and Cost) with the concept that everything has a Use. Example: A table can be used to eat on, play cards on or dance on, BUT you can only use the table for one thing at any given time. This fact requires a decision or a Choice to determine the Use. The true "Cost" or "Value" of the Use then, is simply the "Giving Up" of the next highest alternative.

So the application here is quite simple. We all have the same amount of time, we can only use it for one thing at a time, and the true cost of taking the time to do the things you have to do in the business to be successful is the giving up of the next highest alternative.

Real estate cannot have value in the strict sense of the term, since value cannot be an inherent quality of any object. The mere existence of a thing is not sufficient to create value in it. Value must be related to the people and their circumstances. For example: A value of a gallon of gas at the gas pump of say, $3.57 could very well be worth $500.00 to the person who has run out of gas in the Mojave Desert on a scorching hot day in July.

We have heard many times - find the pain - determine the reason the owner is selling. Their motivation will determine the degree of sacrifice needed for them to receive the benefits. The value of Real Estate is the degree of sacrifice, which one will make in order to acquire control of the property, verses the personal concept on the part of the person conveying that control of the real estate in terms of the benefits they are giving up.

Circumstances and Choices, not innate objects create value. Therefore, he who refuses to recognize his own true circumstances and his alternative of choice in acquiring or conveying the control of the use or ownership does himself a grave disservice and has forgotten basic concepts in negotiations - and well as in life.