[quote=waterboy]Word on the street is that the Chelsea property accepted offer above $1M all cash. [/quote]
If that’s true, (and I don’t doubt it one bit) it shows how asking a low price and triggering an auction can be a successful strategy for the seller.
For anyone interested in the psychology of auctions and why people overpay at them, read the chapter on the high cost of ownership in Dan Ariely’s book Predictably Irrational. He lays out the psychology of how when bidding on something in an auction we start to imagine ourselves as the winner/owner, and as we develop these thoughts in our head, we become more and more willing to pay for that ownership. And before you know it we’ve overbid.
