Have you ever watched Deal or No Deal? It originated in Holland & versions have been offered on TV around the world. Briefly this is how it works. A contestant is presented with a lineup of seal suit cases. Inside each is a cheque for varying amounts of money. Sometimes huge amounts. The contestant selects one case for putting aside as their ‘grand prize’ and then one by one rejects the other cases as they are opened. Sometimes the amount of the cheque is small & so the contestant has given up nothing & eagerly moves onto the next one. Sometimes however the cheque is written out for tens or even hundreds of thousands of dollars. After the rejected cheque is announced, the game show host offers the contestant an ‘instant cash offer’ based on an average of the amount left inside the remaining cases. 

Almost all contestants are so fixated on what they just ‘lost’ they quickly reject the ‘instant cash offer’ & want to open the next case in the hope it’s going to be low & often (this is what makes the game so much fun to watch, but not play) the next amount they reject is even more.

Fixation of loss seems to overwhelm most people.

So, what does this have to do with how home sellers behave?

Just last week I presented an offer to my selling client. The asking price was $625,000. The offer came in at $575,000. To be honest I think I could have negotiated up, but that’s not the point of this story.

The seller was so fixated on the ‘$50,000 loss’ from his asking price, he simply rejected the offer without further consideration.

Just like in the gameshow, the seller overlooked the upside & downside of his decision. If he had accepted, he would have $575,000 in the bank. Instead, he has ZERO.

Perhaps the next time you get an offer on your home, don’t be too quick to reject the offer. Sometimes it’s the best one you are going to get. I wrote about the value of a first offer in another blog back in 2016. Here is a handy link: 3 Reasons to Take the First Offer


About the author:

You can read more about the author of this blog by clicking this link - Stuart Neal, Broker, REALTOR® & Team Lead.

Our FIXED FEE home selling program gives clients proven results & affordability. To learn more call our Broker Owner & Team Lead Stuart Neal at: 780-760-2014 or visit our program page www.FixedFeeRealty.ca

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