Anyone who has lost out on a home despite making a competitive offer may have suspected it: Sometimes the highest bid doesn’t win.
New research from Cornell University suggests that sellers with strong emotional attachments to their homes or possessions often care about more than money. In many cases, they are looking for someone they believe will appreciate, preserve and care for what they’re selling, even if that means accepting a lower offer.
The study, led by Cornell assistant professor Alice Lee and published in the journal Organizational Behavior and Human Decision Processes, examined how emotional attachment influences negotiations and buyer selection. Researchers found that sellers who have a strong sentimental connection to an item often seek information beyond price and financial terms when evaluating potential buyers.
The findings were based on four studies involving online marketplace transactions, home sales, real estate agents and experimental scenarios. Researchers surveyed hundreds of recent sellers and real estate professionals, finding that emotionally attached sellers were more likely to investigate who buyers were, what they planned to do with the property and whether they seemed likely to care for it in the future.
The effect was particularly noticeable in residential real estate transactions. Homeowners who felt a strong attachment to their property placed greater importance on a prospective buyer’s plans for the home. Sellers often weighed those factors alongside financial considerations when deciding who would advance in negotiations.
One experiment illustrated the dynamic clearly. Participants were asked to imagine selling a family cottage they had inherited. Among seven prospective buyers was one offering the highest price but planning to demolish the cottage. Another submitted the lowest offer but described how their family loved the property and intended to care for it.
Researchers found that participants with a strong emotional attachment to the cottage were 50% more likely to open the lower bidder’s message and more than twice as likely to view it first. Many stopped considering other offers after finding a buyer who aligned with their priorities for the property’s future.
The findings challenge common negotiating advice that encourages buyers to hide enthusiasm. Instead, researchers say demonstrating a genuine connection to a home may sometimes provide a significant advantage when dealing with longtime owners who have strong sentimental ties to the property.
For buyers, the lesson is that understanding a seller’s motivations can be just as important as offering the highest price. While investors and house flippers may focus primarily on financial terms, families selling a home filled with memories may be looking for reassurance that the property’s next chapter will be a good one.
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