The Endowment Effect in Real Estate

The endowment effect is a human tendency to value something more when we own it. Last year, economist Richard Thaler even won the Nobel Prize for his work regarding this behavior. But how does the endowment effect in real estate manifest itself? First, let’s give a simple example of how the endowment effect works.  Let’s say a group of people … Read More

The Honest Truth about Your Home’s List Price

Watch this Video First I want to be brutally honest with you about something that’s going to be very important to know, should you decide to put your home up for sale. It’s about the price that you choose to put your home on the market for. I want to give you the honest truth about your home’s list price. … Read More

How Much is a Granny Unit Worth?

What's the Value of a Granny Unit?

I received an email the other day from a gentleman who was wondering how much is a granny unit worth in Santa Cruz? That’s an excellent question; many would-be home buyers specifically look for homes with granny units because they’re an excellent “mortgage helper.” Given their popularity, you might be surprised at my answer to the question: not as much … Read More

The Anchoring Effect and Asking Price in Real Estate

Anchoring

There are a number of theories and philosophies when it comes to pricing real estate for sale. Most real estate agents will tell you that the best practice is to list a home for sale somewhere around what they feel is market value – or even just a bit under market value, to foment a bidding war. However, there’s a … Read More

Sales to List Price Ratio by Weeks on Market

Sales to List Price Ratio by Weeks on Market

Is it true that the longer it takes to sell your home, the less you are likely to receive for it? There’s a lot of evidence that indicates this is in fact true. Check out this chart, which illustrates the sales to list price ratio by weeks on market: Source: National Association of Realtors 2013 Profile of Home Buyers and … Read More

Zillow Giveth, Zillow Taketh Away

Zillow Logo

While searching for a blog topic, two reports spanning the good/bad news spectrum caught my eye, because Zillow.com had a hand in both. To check out a Zillow-backed report showing the relative strength of the South Bay housing market, CLICK HERE. To check out a different Zillow-cited report showing how home values and negative equity are still headed in the … Read More