Taking the L: Is the Loss Real or Perceived?
“If I take that price, I’m losing. I’ll be selling at a loss.”
It’s one of the things we hear most often from sellers. So this week’s question: is the loss real, or is it perceived?
Seller one: a perceived loss
You bought your home for $200,000. You listed it for $500,000. The offer comes in at $450,000, and it feels like you’re taking a $50,000 loss.
In a market that isn’t declining, that’s not really a loss. It’s a $250,000 gain that’s smaller than you hoped for. The feeling is understandable, but the numbers tell a different story.
Seller two: a real loss
Seller two sells at a price that is lower than what he paid for the home. That’s a true loss, and that seller has every right to say, “I sold it at a loss.” Seller one did not.
Both are serious
Whether the loss is real or perceived, it’s a serious situation to the person living it, and every seller’s situation deserves to be taken seriously. The goal is to know which one you’re facing before you respond to an offer.
Which side of the line are you on?
If you’re weighing an offer and aren’t sure, call Harold Jones, Designated Broker at Jones & Company Real Estate: 509-679-8974 · office@jonescompanyre.com
Comments