195 Pecksland Road has a new price, $3.685 million, and notes that it now sports “a fabulous new master bedroom suite” and a new kitchen. That sounds very nice, and the price looks attractive, but if all that new stuff now makes it worth $3.7, what on earth was the justification for pricing it, pre-improvements, at $6.250 million back in 2007?
Another demonstration, if one were needed, that the authors of Freakonomics were wrong to conclude that real estate agents not only price their own homes higher than comparable homes, but get those higher prices. In Greenwich, at least, agents are notorious for overpricing their homes, but they never get what they think it’s worth. Emotionalism beats objective assessment, every time, just as it happens so often with normal people.