Yahoo Finance has an interesting article on buyer and seller attitudes when buying and selling real estate. Looks like it is genuine, based on real research. Of particular interest to buyers of Ocean City Maryland properties, was this quote:
“Welcome, Out-of-Towners!
Out-of-state buyers tend to pay more than locals for properties of equal value, particularly when they come from states with higher real estate prices, according to a study from Brigham Young University. Researchers looked at apartment sales in the Phoenix metropolitan area-2,854 transactions from 1990 to 2002-and found that, on average, out-of-state buyers paid more than 5 percent more than their in-state counterparts.
BYU’s Grant McQueen says it often makes economic sense for out-of-state buyers to find homes fast, even if it means shelling out more money than if they shopped more or negotiated longer. Otherwise, they can end up paying more in travel costs than they save on the price of the home. The other reason, though, is less rational: In what’s known as “anchoring,” buyers tend to pay more for a home when they’re used to paying a higher price elsewhere.“
This is a phenomenon that has always been in play here in the greater Ocean City Ocean Pines Maryland real estate marketplace, but never more than the past 10 years and especially during the peak of the bubble. Yet another compelling reason for Ocean City condominium and home buyers to trust the guidance of a seasoned exclusive buyer agent when making pricing decisions on any offer.
The full article –
http://realestate.yahoo.com/promo/the-psychology-of-real-estate.html
