Let’s pretend your home is a Stock… What are your options?

I know I'm playing with fire here... However, I have to get this off my chest.  Consider this an open letter to every seller out there.

Let's say you purchased your home (stock) at $200K.  The market is smiling down on you & that home (stock) skyrockets to $425K!  Woo Hoo!!  We're in the money, we're in the money!!

But wait... What's that?  The market has changed?  What do you mean changed?  It can't just CHANGE like that... can it?  Yes, Mr. & Mrs. Seller I'm afraid it can.  I'm afraid it did.

So... here's the deal.  I understand your home (stock) was valued at $425K, but today it's worth (trading at) $375K, regardless of what your neighbor sold his home (stock) for. 

Here are your options:

•      Sell the home (stock) at $375K.

•      Keep the home (stock), hope it goes back up & pray it doesn't fall any further.

Now... let's be honest.  You did not LOSE $50K since you never sold your home (stock) when it was valued at $425K.  It was all hypothetical. A paper loss at best.

When all the smoke settles, you made a tidy little profit.  You can either look at the glass half full or half empty.  But in any event, you did not lose money on this investment. Try reporting it to the IRS as a loss & let's see what they say.

As Real Estate Professionals, it is our job to tell you what you need to know, not what you want to hear.  My point is this... Either you want/need to sell or you don't.  If you want/need to sell, sell.  If you don't, by all means don't. 

You as the seller and we as agents do not get to decide what price your home will sell for.  Buyers along with supply & demand will be the determining factors.  The only decision you get to make is whether or not you are willing to sell it for that price.

So for all you sellers out there that are not willing to sell your home based on our current market conditions, if you would kindly take your home off the market - I personally would appreciate it.  This will make our market appear much less saturated & allow us to better assist those sellers who really do want/need to sell.  Thank you!

Disclaimer:  Obviously this scenario does not apply to those sellers who purchased at the peak and are literally "losing" money on their homes.