CalculateRealEstateROI

Investor Psychology

Anchoring Bias

Cognitive bias where prior reference points (purchase price, prior peak) distort current valuation.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

If you remember buying for $200k, you'll resist selling at $190k — even if it's the right move.

Examples

  • Holding a property at the 2022 peak comp instead of marking to today's market.

Common mistakes

  • Pricing rentals to your basis instead of market rent.