One of the stated assumptions in the letter that the homeowner sent to his friend is that Adams Realty, which is the larger of the two real estate firms, clearly outperforms Fitch Realty, the smaller of the two. If this turns out to be true, then the larger firm is clearly superior. However, there are many situations in which the much smaller company may be the better choice, particularly for smaller investors. The assumption that the smaller company does not perform as efficiently as do the larger firms is unsupported by the information given. The employee who wrote the letter to the friend may have meant that the revenue of Adams Realty was twice that of Fitch Realty, but that does not necessarily mean that more homes are sold by Adams Realty. In fact, it may be the case that homeowners who list with Adams Realty sell their homes more quickly, but that does not necessarily mean that Adams Realty outperforms Fitch Realty in general.

The employee’s claim that homes listed with Adams Realty sell more quickly is correct. This evidence, however, only indicates that the firm simply sells homes more quickly. It does not indicate that Adams Realty sells homes at a higher price. While a homeowner who lists with Adams Realty may sell his home more quickly, he may also sell his home for less. According to the letter, the listed home sold more quickly last year, and that suggests that the homeowner may have sold it for a higher price than when it was listed with Fitch Realty. In fact, it is possible that the home was listed with Fitch Realty first, and that the homeowner decided to list it with Adams Realty because it sold more quickly. Since the homeowner had owned the home for ten years before listing it with Adams Realty, he may have been motivated by the desire to sell it quickly. The homeowner may not have known how the house would perform on the market, so he may have assumed that selling it quickly would be a better use of his money and time than holding out for a higher offer. He may have felt more comfortable listing with Adams Realty because he had heard good things about the company, and may have thought that the higher sales revenue would validate his choice.

On the other hand, the homeowner may have sold his home for a lower price with Adams Realty, and because the home sold more quickly, he may not have realized that he was losing money. In order for a homeowner to realize how much money he is losing, he would have to sell his home for more than he paid for it. The letter does not suggest that the homeowner listed his home with Adams Realty with the intention of selling it for a greater profit, which would mean that he would have to sell it for a greater profit than when he listed it with Fitch Realty. The letter also does not explain why the homeowner listed his home with Adams Realty in the first place, so he may have listed it there simply because he was familiar with Adams Realty, or because he was aware that it was the largest real estate company in the town. The homeowner may be reluctant to admit that the smaller company outperformed Adams Realty because the company employed his son-in-law, who is a close friend. If the larger company does in fact outperform the smaller one, then the homeowner may be reluctant to admit that he made a mistake, and he may prefer to blame the son-in-law.

The letter does not present any convincing evidence that the larger company outperforms the smaller one, and the letter’s author has not provided any evidence to support his claim that Adams Realty is superior to Fitch Realty. If the homeowner’s friend had checked other information, he might have been able to determine that the homeowner listed with Adams Realty because he was familiar with the company. The friend might also have inquired why the homeowner listed with a smaller company instead of a large company, but the letter does not reveal any reason why the homeowner listed with one company instead of another. If the homeowner’s friend does in fact want to use the largest real estate firm, then he should have researched both Adams Realty and Fitch Realty before making the decision. He should also have made sure that he had all the information before making his choice.