Real Estate

Three sales tactics rife in the real estate industry and why they work

Buying a home is likely to be the biggest financial transaction you will ever make, and you’re at a distinct disadvantage. You’re an amateur up against professionals — real estate agents — versed in psychological tricks to get you excited about owning a property and paying more than you planned.

These tricks start with comparatively simple things such as making rooms look bigger in adverts by using a wide-angle photography. They extend all the way to the point of sale.

None of these tactics necessarily involve outright lying — there are laws against false and misleading conduct. But they are manipulative, exploiting the fact that humans are emotional beings with many “cognitive biases” — a perception of reality that is more emotional rather than rational.

The three most common tactics come down to manipulating your confidence in your own decisions. Close to 80 studies suggest overconfidence is one of the

Read more