the endowment effect

Performance Property Real Estate Question

How The Endowment Effect Hurts Homeowners Trying To Sell

Q: Gerald, we’ve been trying to sell our home for over a year. Our agent has been telling us to lower our price, but the market here is really hot and I don’t want to give it away. Our house is nicer than the other houses in our neighborhood, our backyard is bigger, our basement is finished and we have a beautiful custom deck. What is our real estate agent doing wrong? Kendrick, Upper Marlboro, MD A: I’m not sure whether your Realtor is any good or not, but the bigger issue is that even in a hot real estate market, buyers are always going to look for the best value they can find. I’m sure you are understandably proud […]

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