Why Buyers Feel More Confident Paying More… When Others Do Too
Every buyer today knows home prices are high. Like everything else, the cost of living has gone up, and housing is no exception. Buyers accept that reality, but that doesn’t mean they want to feel like they’re overpaying either. And honestly, who would?
That fear of paying too much is one of the biggest mental hurdles in today’s market. Even if a home checks all the boxes, buyers still hesitate unless something gives them confidence in their offer. So, what actually helps? Seeing that other people also want the same property.
This is where social proof kicks in, and it’s how most people are wired. It’s like picking a crowded restaurant over an empty one, or buying something on Amazon because it has a sizeable number of positive reviews. In real estate, when buyers know there’s competition, it gives them more confidence in the home’s value. They’re not just trusting the seller’s asking price, they’re seeing others show interest and that validates what they’re willing to offer.
I’ve seen this play out over and over again. Just recently, I was involved in two homes priced just under market value. Based on the features and location, they should’ve drawn solid attention. But they sat with no offers and very few showings. Then the sellers dropped the price by about significantly, and suddenly, there were lines down the block to tour the home. Multiple offers came in, some even higher than the original list price.
So, what changed? Not the house. The shift was in mindset. That new price made people feel like they were getting a deal. And once they saw others jumping in, the urgency kicked in. Some of the same buyers who passed on it before were now not only willing to pay more, but eager to do so. Keep that in mind while house hunting.
Value in real estate isn’t just about numbers. It’s about perception. A home that feels overpriced one day might seem like a steal the next, just because interest has picked up. I’ve heard people call this a tactic, like it’s some kind of trick to start a bidding war. But it’s not about playing a game with people. It’s based on a psychological concept about how we, as people, respond to what others are doing.
That’s why I always tell buyers not to dismiss a home just because it’s been sitting or seems overpriced. Who cares if others are passing on it? If you can picture yourself living there, go take a look. You might be the only one, and that could put you in a great spot to get a deal. The data that already exists will tell you what a fair market price is for the home, you don’t need others to validate it for you.