Fundamental Real Estate Mistakes: Self-deception

August 31, 2008

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!