A client, Robert, is preparing to sell his house. His realtor suggests pricing it at $850,000 based on recent comparable sales. However, Robert insists on listing it at $900,000 because that's what he originally hoped to get for it when he bought it five years ago, despite the market having shifted. What bias is most influencing Robert's pricing decision?

Question: A client, Robert, is preparing to sell his house. His realtor suggests pricing it at $850,000 based on recent comparable sales. However, Robert insists on listing it at $900,000 because that's what he originally hoped to get for it when he bought it five years ago, despite the market having shifted. What bias is most influencing Robert's pricing decision?

Answer options: ✅ Anchoring

• Endowment Effect
• Overconfidence
• Herd Mentality

Correct answer: Anchoring

Explanation: Robert is anchoring his current selling price expectation to his initial purchase expectation or 'hope' when he bought the house, rather than current market realities. The earlier, higher price is serving as an anchor for his current valuation.