16. Where You End Up Depends on Where You Start: The Anchoring Effect
The more you ask for, the more you get.
Brian and Rhonda had been looking for a home for several months. Then they came across the perfect place. The seller was asking $295,000 for it. Brian, always the smart negotiator, began doing his homework. He got a report listing all recent home sales in the area. He found ones that were similar to the one he wanted. He compared them on lot size; number of rooms; square footage; and quality of construction, age, condition, and similar factors. After this careful analysis, Brian concluded the fair market value for this house was $255,000. Now came the challenge. If Brian allowed the seller to focus on the $295,000 asking price, ...