this reminds of a great book I just read about pricing and the science behind it. essentially people are not good understanding absolute value but instead make sense of things based on relative value it has to do with the way the brain works.
I think so long as we have buyers out there who believe that since the bubble is deflating they are getting a "discount", there's no shortage of idiots that will unknowingly overpay for a house and think they struck an awesome deal. While this might prove to help in situations like yours where overpricing can lure a dolt, it's really just luck and wouldn't have any bearing in a real market. Those buyers were probably out chasing their free $8k govt bribe too.
this reminds of a great book I just read about pricing and the science behind it. essentially people are not good understanding absolute value but instead make sense of things based on relative value it has to do with the way the brain works.
Priceless (the myth of fair value)
written by william poundstone
sophi32 1 year ago
I think so long as we have buyers out there who believe that since the bubble is deflating they are getting a "discount", there's no shortage of idiots that will unknowingly overpay for a house and think they struck an awesome deal. While this might prove to help in situations like yours where overpricing can lure a dolt, it's really just luck and wouldn't have any bearing in a real market. Those buyers were probably out chasing their free $8k govt bribe too.
stinkypoon 1 year ago