“If I decided to sell, no way am I taking a loss, regardless of what they say the market is doing. The market may cool, but hopefully housing prices won’t go lower than what the home is worth in today’s market.”

“We bought our house 2 years ago. We put 25,000 over asking just to be able to get the house since there were bidding wars going on in the area. If I decided to sell, no way am I taking a loss, regardless of what they say the market is doing. The market may cool, but hopefully housing prices won’t go lower than what the home is worth in today’s market.”
dorri, comment at ctvnews.ca 8 Aug 2012 2:57pm

“The market may cool, but hopefully housing prices won’t go lower than what the home is worth in today’s market.” – We’d like to see a logician dissect that statement.
Many shadow sellers in this position will end up selling their properties at much lower prices, in psychological distress.
– vreaa

7 responses to ““If I decided to sell, no way am I taking a loss, regardless of what they say the market is doing. The market may cool, but hopefully housing prices won’t go lower than what the home is worth in today’s market.”

  1. Too late dumbass, your house is probably worth 15% less than you bought it for…

    Market doesn’t care you overpaid for your OSB new construction shack.

  2. Cognitive dissonance, taking a loss would force them to accept that they were wrong to purchase when they did (assuming they purchased with the intent of making a profit). As prices decline the pain of assumed future losses may eventually outweigh the pain of being wrong and allow them to sell.

    “The market may cool (and the sun may rise tomorrow), but hopefully (since there is no compelling reason aside from their hope) prices won’t go lower than what the home is worth in today’s market (I’ve adjusted to the current loss of value but each new drop is a new defeat).”

    • Yes, behaviorally it is called narrow framing – my parameters of what this house is worth is my purchase price!
      I just read it and thought – gibberish! bad noise!

  3. Ralph Cramdown

    It would appear the guy’s saying he paid $25k over asking without there being any other bids. Maybe a bully offer (though those generally involve a greater premium, I think)? They sound like first time buyers naively going along with their agent’s “I think we should put in a VERY strong offer.”

    As to that “what the home is worth in today’s market” jazz, it strongly suggests no underlying theory of house value at work (i.e. it’s worth whatever someone will pay for it, and that’s what I’ll pay, too, because that’s what it’s worth). I guess I shouldn’t be surprised, as most people, agents included, seem to have no theory of housing fundamentals.

  4. hopefully !!! hahahahaha
    every day I get more and more surprised at the financial stupidity of the masses. Hoping, wishing?? Wow….

    Not that hard to take a look at ………… THE FACTS, and realize that the wheels are already in motion. Wish, hope, pray…

    Futile.

    Live and learn people. Priced in forever.

    As safe as houses….

    ha
    ha
    ha

  5. If that is your attitude with the housing market I would stay far far away from the stock market. I bet there are still RIM shareholders at $50.00 that refuse to sell also.

    The way the mind works is you pay a certain price for an asset and you attach that purchase price to the value of said asset. If the asset goes down you still believe it is worth what you paid, when it does drop your emotions become frozen in disbelief and selling is to hard to stomach.

    Cutting your losses to a minimum is the key to trading/investing in any market. Unfortunately for the R/E market is highly illiquid and the transaction cost are killer.

    All markets are driven by fear and greed and fear is a much larger motivator that greed. there is a saying in the stock market that you catch the escalator up and the elevator down.

  6. “If I decided to sell, no way am I taking a loss, regardless of what they say the market is doing.”

    That’s a great line too. Power for positive thinking. You WILL bend to my will, pesky market!

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