Builds on a previous study and examines the influence of asking prices as anchors in the real property negotiating process. Previous studies have shown that the human mind uses short cuts (heuristics) in process information. Describes a study which gives further evidence that negotiators familiar with real property will, in many cases, devalue cognitively difficult pricing information and base their negotiation expectations on the seller’s asking price. Concludes that the seller’s asking price is thus a potential source of bias.
Journal of Property Valuation and Investment – Emerald Publishing
Published: Aug 1, 1997
Keywords: Heuristics; Negotiating; Prices; Real estate; Valuation