agent. He hadn’t really given thought to that part of his promotion and move. A fast-moving buyer’s real estate agent contacted Chuck and got him excited by telling him that someone wanted to buy his house before he even put it on the market. The buyers were offering $285,000 and were approved for a loan. As the buyer’s real estate agent put it, this would be an easy, quick, and painless sale. The agent put on the pressure. “If you get a real estate agent, what you get for your home will be reduced by 6% and the deal won’t be as good. Besides, the house around the corner sold for $280,000 just 60 days ago. So? Will you sell your home?” On the surface, it seemed like a great deal. Chuck could sell his home quickly and avoid the inconvenience of the standard selling process. Chuck accepted the $285,000 offer and moved on with his life. The sale Chuck accepted was quick and easy, as the buyer’s agent said it would be. But it wasn’t painless. A few weeks later, Chuck’s neighbor sold his house for $321,000. The neighbor’s house was slightly smaller than Chuck’s, but otherwise comparable and in similar condition. Why did Chuck sell his house for $36,000 less than his neighbor did? What features made his neighbor’s house ~10% more valuable? Was it because it had a red door? Was it because the grass was cut? Why did Chuck bother to work so hard to pay down his mortgage? Why did he work so hard to keep his house in tip-top shape, only to sell it for less than it probably was worth?
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