Theresa owns a mansion on an island on Flathead Lake in Mont…

Theresa owns a mansion on an island on Flathead Lake in Montana. She is tired of the Montana scenery and wishes to purchase a mansion on Lake Tahoe. Theresa’s good friend Timothy has always expressed interest in her Flathead Lake mansion if she were to sell.  One night, Theresa and Timothy go out for dinner and drinks at a local brewery. After hours of boring conversation about their investments and the multiple properties they own, Theresa mentions how she has grown tired of her Flathead Lake mansion. She then offers to sell the mansion to Timothy for a cool $2.5 million.  Timothy crunches the numbers in his head and promptly responds, “I will buy it for $2 million.” What is the effect of the statement Timothy made?