Instructions

This is a role-playing game in which you are going to imagine that you are buying or selling a house.

1. Your character will either be a buyer or a seller.
2. Do not tell ANYBODY about the price that you are willing to sell the house for or pay for a new one. This is private information.
3. If the price is right, you MUST sell/buy for the price that is dictated on the card.
4. All houses are the same, and there is no point of holding out for something better.
5. In the first two rounds, the prices will be given by an external source. Act on this information.

Round 2

You are going back to the market.

This time assume a new identity. Your teacher will assign you a new number.

Sell or buy a house. Talk with the other people there, get a feel for the market.

But:

Do not tell people how much you would be willing to buy or sell your house.

You are a in this market.

£,000

You must make deals if the price is right.

Round 1

Meet with the other buyers and sellers. Get a feel of who is willing to buy and sell.

Do not tell people how much you would be willing to buy or sell your house.

When the time is right, your teacher will tell you the price that the estate agents think houses in the road will go for.

Prices Revealed: Round 2

Once you learn of the selling price, you can decide what you want to do. Are you going to buy a house? Are you going to sell one?

Once people make up their mind, you want to make a deal. Get the best house that you can! (And don’t be shy)

1. How many houses were bought and sold?
2. How did you decide who got to buy/sell?
3. Who was happy? Who was not?
4. What does this suggest about the price?

Final Task: Pair up

You are no longer going to rely on estate agents to set the price. You are now allowed to bargain for any price that you like.

Pair up between buyers and sellers using the following rules:

Sellers:

If somebody approaches you and makes you an offer for more than you were willing to sell the house, sell the house.

However: if anybody else comes along and offers you a higher price, take that deal.

Don’t settle your pair until you are sure you’ve got the best price.

Buyers:

If you find a house that a seller is willing to sell at a lower price than you are willing to buy, then buy the house!

However: if you find another house for a lower price, take that deal (these houses are all the same)

Don’t settle your pair until you are sure you’ve got the best price.

We will now compare our findings on a supply and demand graph.