LA and Las Vegas Homeowners Are Delusional About the Value of Their Properties Written by Devone Richard

There’s a growing disconnect in both Los Angeles and Las Vegas real estate markets—and it’s not coming from buyers. It’s coming from homeowners who are anchored to yesterday’s prices, yesterday’s demand, and yesterday’s market psychology.

In 2026, many homeowners are overestimating the value of their properties, and that delusion is costing them time, leverage, and money.

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The Problem: Peak-Market Anchoring

Too many homeowners are still pricing their homes based on:

• 2021–2022 pandemic-era sales

• Online estimates with no context

• Neighbor stories instead of real data

• Emotional attachment instead of market reality

The market has changed. Buyer behavior has changed. Financing conditions have changed. But expectations haven’t.

That mismatch is where listings fail.

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Los Angeles: Lifestyle Doesn’t Override Math

Los Angeles homeowners often believe that location alone guarantees a premium. While LA remains a desirable, high-demand market, buyers in 2026 are far more analytical.

Higher interest rates mean:

• Monthly payments matter more than list price

• Buyers compare aggressively across neighborhoods

• Overpriced homes are skipped entirely

In LA, the homes that sell are the ones priced for today’s buyer, not yesterday’s bragging rights.

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Las Vegas: Appreciation ≠ Infinite Growth

Las Vegas homeowners are facing a different version of the same problem. Rapid appreciation over the last few years has created unrealistic expectations.

What’s being overlooked:

• Vegas is now a normalized market, not a speculative one

• Buyers are negotiating again

• Inventory and competition matter

Just because your home did appreciate doesn’t mean it will sell at any number you choose.

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Online Estimates Are Fueling the Delusion

Automated valuation models have done more harm than good. They:

• Ignore condition and presentation

• Miss micro-neighborhood differences

• Lag behind real buyer behavior

• Inflate seller confidence without accountability

Buyers don’t buy algorithms. They buy value.

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Overpricing Is No Longer a Harmless Strategy

In today’s market, overpricing doesn’t “leave room to negotiate.” It:

• Reduces showing traffic

• Signals seller inflexibility

• Leads to price cuts that weaken leverage

• Results in lower final sale prices

The first 14–21 days matter more than ever. Miss that window, and the market moves on without you.

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What Smart Sellers Are Doing Differently

The sellers winning in LA and Las Vegas right now are:

• Pricing based on active competition, not closed nostalgia

• Preparing homes to feel turnkey

• Understanding buyer psychology

• Using strategy instead of ego

They’re not delusional—they’re disciplined.

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The Bottom Line

The market doesn’t care what you need your home to be worth.
It doesn’t care what your neighbor claims they got.
And it definitely doesn’t care what an algorithm says.

Homes sell at the intersection of price, condition, and demand—not emotion.

In 2026, realism sells. Delusion sits.

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