4429 Trancas Place, Tarzana closed. List price $ 1,500,000 Closed $ 1,725,000. That’s 15% above the list price! So why would buyers bid so high above the comparables? It’s the psychology of real estate: people want what other people want. When it is about winning and beating out the competition, the price is just a number.
Since closing, I’ve had no less than four appraisers call me to verify this price as it is “out of line” (meaning much higher than similar homes) for this neighborhood. They are trying to find a reason so that they don’t have to use it when appraising other homes!! It’s important to be able to articulate the value of a specific home. That means pointing out the differences in DETAIL to the buyers and their agents during the bidding process as well as to the appraisers. What makes this home special and unique. Even when buyers have removed an appraisal contingency with their offer, they still want to know that they got a good deal. So psychologically an appraisal is an important milestone in the process. Psychology is an important component in real estate.