Home buying

Loss Aversion

Loss Aversion

Recognizing loss aversion can help you avoid overvaluing a current property, leading to more objective assessments when considering a new home purchase.
Decoy Effect

Decoy Effect

Understanding the decoy effect can help you make better decisions when comparing properties, by focusing on the features that matter most to you.

Similar Situations

Skinner's Superstition Experiment

Skinner's Superstition Experiment

Home-buying decisions: Use rational decision-making processes, and avoid superstitions related to house numbers, colors, or other factors.
SMART Goals

SMART Goals

Home Improvement Projects: Applying SMART goals to home improvement projects can lead to successful outcomes.
Optimism Bias

Optimism Bias

Home maintenance: Knowing optimism bias can help you be proactive in maintaining your home, addressing potential issues before they become more significant problems.
Pessimism Bias

Pessimism Bias

Home maintenance: Knowing pessimism bias can help you be proactive in maintaining your home while maintaining a positive outlook on its overall condition and value.
Bandwagon Effect

Bandwagon Effect

Home decorating: Knowing the bandwagon effect can help you create a home that reflects your personal style and preferences, rather than adopting popular design trends.
10-10-10 Rule

10-10-10 Rule

Home Improvements: When deciding on home renovations or upgrades, consider the immediate costs, the impact on property value in the medium term, and the long-term benefits for comfort and enjoyment.
Correlation-Causation Fallacy

Correlation-Causation Fallacy

Home Improvement: Recognizing the correlation-causation fallacy can help you make more informed decisions about home improvement projects, considering multiple factors that may contribute to observed correlations.
Clustering Bias/Illusion

Clustering Bias/Illusion

Home Improvement: Recognizing clustering bias can help you make more informed decisions about home improvement projects, without assuming that a series of successes or failures reflects a pattern.
Depth-First Search

Depth-First Search

Home organization: Applying DFS to declutter and organize one room or area of your home before moving on to the next can lead to a more thorough and efficient process.
Sunk Cost Fallacy

Sunk Cost Fallacy

Home Improvement: Knowing the sunk cost fallacy can help you decide whether to continue or abandon a home improvement project, without being swayed by the money and time already spent.