Selling your home? Time to emotionally detach
Home isn’t just a piece of property. It’s where we live our lives and make our memories. It’s understandable that emotions are wrapped up in those places – but when we put our homes on the market for sale, it’s time to manage those emotions in as mature and effective a manner as possible. In other words, once you decide to sell your home, it’s time to detach and move on.
Equifax has a few thoughts on the psychology of detachment while selling your home. It’s suggested that you become aware of these behavioral concepts that may arise during this emotional time:
- Loss aversion. Even in this hot market, it’s possible that your home might sell for less than the amount you think it’s worth. It’s important that you come to terms with these feelings and appreciate the overall gain you’ll get from the deal.
- Anchor. Stemming from loss aversion, we all have a fixed price that we think our home is worth. It’s well worth the effort to get past that. What’s going to determine your value are market conditions and what buyers are willing to pay, not what you think it’s worth.
- Status quo bias. Basically, this addresses getting over the hump of inertia. You may not want to change things unless there’s a major reason for doing so, but let’s face it: there’s a reason you put your home up for sale. It’s time for a change.
- Sunk costs. Investing money we can’t get back can sting. It’s hard to cut your costs and move on, but that’s what you have to do. It’s possible that you’ve spent money on your home that you won’t recoup, but it’s healthiest not to dwell on this.
- Endowment effect. We value our home, but others may not. This is part and parcel of selling your property. Everyone experiences it, and it’s possible to get past it and move into your future – as well as your future home.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners– and feeds the dreams of those who wish they could live in Tony Bennett’s ‘City by the Bay.’ Call 415-577-0809 or email firstname.lastname@example.org. www.ceceblase.com