PricePinner
Anchoring is a well-known effect in psychology. The first number that you see pulls your guess towards it, even when it has nothing to do with the question.
Anchors in home prices
When people buy a home, the asking price is a strong anchor. In Sweden, the final price is often different from the asking price, sometimes by a lot. But buyers still think from the asking price.
In PricePinner there is no asking price. That is on purpose. You must build your guess from the facts.
Other anchors
- The last home that you guessed. If it was expensive, your next guess may be too high.
- A price that a friend told you about.
- Your own home's price.
How to avoid it
- Build your guess from parts: price per square metre for the area, times the size, then adjust.
- Say your number out loud before you touch the price input.
- When you play many homes in a row, look at each one fresh. Do not compare it only with the last one.
Use it in real life
When you go to a viewing, make your own guess before you read the asking price. Then compare. You will see the anchor at work.