The Block Season 20 gave us all an unforgettable season of innovative renovations, drama, and strategic bidding at the final auctions. Alongside the design and real estate excitement, this season also showcased an interesting behavioral science concept: “anchoring.” Anchoring is a psychological phenomenon where the first number or price sets a mental benchmark, which can influence subsequent decisions. On The Block, anchoring may have impacted how contestants, buyers, and even viewers perceived the value of each house during the intense final auctions.

What is Anchoring in Behavioral Science?

Anchoring occurs when an initial figure—like a suggested price or bid—sets a reference point that can sway subsequent judgments. At a real estate auction, an opening bid or a pre-set reserve price acts as an anchor, subtly guiding buyers’ perceptions of a property’s value. Contestants might also feel the effects of anchoring, adjusting their own expectations and decisions based on competitors’ pricing.

Anchoring in Action on The Block Season 20

With each contestant’s house offering unique features, final auction prices don’t just reflect objective value. Instead, early bids and reserve prices can serve as powerful anchors, influencing how the auction unfolds. Here’s how anchoring likely played a role this season:

1. Reserve Prices: The Initial Anchor
   • Each contestant’s house was assigned a reserve price, which could act as an anchor for buyers and contestants alike. If a reserve price was notably high, it might set a high initial bar, causing bidders to mentally benchmark other properties against it. For the contestants, passing that reserve price was the key goal to make a profit, even if other properties ultimately attract higher final prices.
2. Early Bids: How First Offers Set the Tone
   • The first bid on a property often sets the tone for the auction, establishing an anchor that influences subsequent bids. When one of the houses opened with a high initial bid, this likely set an expectation for buyers and spectators alike, creating a psychological benchmark that raised expectations for future bids. This phenomenon can contribute to “bidding momentum,” where initial high offers influence the perceived value of other properties.
3. Comparative Anchoring Among Properties
   • Throughout the auction, contestants observed one another’s bidding outcomes, with each sale creating new benchmarks. When a house with high-end features achieved an impressive final bid, this could serve as an anchor for the remaining properties, impacting buyers’ willingness to match or exceed those figures.
4. Emotional Anchoring: The Influence of Design and Feel
   • Anchoring doesn’t just apply to numbers; emotional appeal can also serve as a powerful anchor. For example, a house with an inviting family-friendly layout might create an emotional connection with buyers, leading them to bid beyond the home’s objective value. Behavioral economists call this “emotional anchoring”—where design, ambiance, and a buyer’s aspirations impact their bidding decisions.

How Anchoring Could Have Influenced the Winning House

As the final auction approached, contestants watched the results of each property closely, with each sale providing a potential new anchor. Anchoring wasn’t just theoretical here; it likely influenced which properties achieved higher-than-expected bids, creating intense competition that ultimately shaped the season’s winner.

Why Understanding Anchoring Adds Depth to The Block

Understanding anchoring offers a new perspective on how auctions on The Block unfold. In future seasons, we can look out for reserve prices, initial bids, and emotional appeal as potential anchors. This concept reminds us that psychology often shapes real estate outcomes as much as design and strategy—making anchoring a key factor in the excitement of The Block.