Fundamental Real Estate Mistakes: Self-deception

Self-deception affects everyone to some degree. Lives are lost and incredible amounts of time, money and resources are wasted each day because of it. Knowledge and disciplined vigilance are useful tools against it. So is hiring a professional. 

In real estate the financial impact of self-deception can be enormous. The right real estate professional will employ his or her expertise and objectivity in your service to guide you away from making fundamental mistakes caused by self-deception. 

Author and blogger Dan Ariely, the James B. Duke Professor of Behavioral Economics at Duke University, brings to light one sort of real estate self-deception in this recent blog post at Predictably Irrational

A recent study conducted by Zillow finds what they call a “Not My House! Sentiment,” where despite the evidence that 77% of U.S. homes actually declined in value in the past year, 62% of homeowners believe their own home’s value has increased or stayed the same… – Dan Ariely

We’ve encountered home sellers who seemed to feel that their home was worth more simply because they lived in it. It’s hard to beat that for self-deception!

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: