Why do some people think they are attractive and others think they are ugly ?
If you say they are ugly, (even though it's true) they would feel insulted because they have judged themselves to be attractive.
Why do some people think they are fat and others see them as thin ?
If you tell them they are too thin, they might feel insulted, because they really think they are fat.
Why do some people think they are clever and others think they are idiots ?
If you call them an idiot, even though it's true, they would feel insulted.
People have varying judgments of what should be objective reality on many different levels, besides home pricing. It's simply human nature.
I think Donald Rumsfeld described this phenomenon:
"…as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns — the ones we don't know we don't know."
