If a neighborhood has three identical houses with stable demand, which house typically sells for the most?

In a situation where there are three identical houses within a neighborhood that has stable demand, the principle of market dynamics and buyer psychology often comes into play. Typically, the last house sold in a sequence tends to have the highest selling price. This phenomenon can be attributed to several factors.

Firstly, buyers may perceive the last house as having more value due to its newfound market visibility. When prospective buyers observe that two identical houses have successfully sold, they might infer that the area is capable of supporting higher prices, thus driving competition for the remaining property.

Additionally, the concept of scarcity can create a sense of urgency among buyers, leading them to bid higher for the last available house in that cluster if they believe it represents the best opportunity. This competitive atmosphere can elevate the perceived worth of that house, impacting its final sale price.

The assumption that all houses will sell for the same price does not consider the nuances of human behavior in the real estate market. Market influence, demand signaling, and competition can cause differences in selling prices, even among identical properties in similar locations. In this scenario, the last house, or the third house, tends to be positioned to capitalize on these market dynamics, resulting in it often selling for the highest price.