Sellers are often the last to respond to the market change. They are still thinking of how much their house was worth two years ago. Sellers think they are losing money.
The best way to clarify this dilemma is to compare it to the stock market. Stock may have been worth $2.00 a share more last month but unless it was sold at that time, it's just Monopoly money. The stock is only worth what a buyer will pay when it's for sale. The stock owner has not lost $2.00 a share by not selling because they never had that money. When they sell, they may actually earn $15.00 (rather than $17.00) a share more than what they paid for the stock 6 years ago. Real money that a buyer pays is what the stock actually earns.
Crying over spilled milk (or lost value) only keeps the house on the market longer and usually produces a much lower sale price than if the price had been cut drastically when first marketed.
(c) Bonnie Erickson 2006
August 8, 2006
Hey, Gene, it's the American way to spend what you ain't got! I've got to get a copy of that Allman Brothers album!
Posted by: Bonnie Erickson | March 20, 2007 at 11:13 PM
August 8, 2006
In other words......can't spend what you ain't got, can't lose what you never had. That's wisdom I gained from The Allman Brothers album "Win, Lose or Draw".
Posted by: Gene Molloy | March 20, 2007 at 11:12 PM