Winning a bidding war isn’t always a win, research on 14 million home sales shows
- Written by Soon Hyeok Choi, Assistant Professor of Real Estate Finance, Rochester Institute of Technology
In today’s hot housing market, winning a bidding war can feel like a triumph. But my research shows it often comes with a catch: Homebuyers who win bidding wars tend to experience a “winner’s curse,” systematically overpaying for their new homes.
I’m a real estate economist, and my colleagues and I analyzed nearly 14...