My neighbor bought at $900,000. They eventually needed to move for work so they put the house up for sale at $1,500,000.00. A few months later to 1.3 million. Then weeks later $950,000. 4 days ago they switched it to for rent at $3,985 a month. Like dude, no matter what it’s too much! 900k is too much and the rent is too much.
Is Abysmal on both ends. Plus now as a rental that house will be incurring damage. But that’s how you end up owning two homes. You just can’t sale the first one so you rent it out.
I mean, your neighbor could ‘man up’ and just take a fucking loss.
It would be better to get the 800k and invest it, then have it locked up in a home that’s not appreciating or can’t be rented.
but hey, it’s 2026, nobody can ever take a loss on property values… the line must always go up and we’ll be stubborn idiots rather than take a minor loss…
almost like people are emotional and stupid when it comes to money… instead of pragmatic and smart. But I’m sure your neighbor has convinced themselves they are super genius by not dropping the price to one that would actually sell…
The economists of it are clear. Every financial person would tell you sell the home, and invest the money.
But people are not rational or smart, they are emotional. Psych studies tell us we percieve the loss for $10 as far more painful than the gain of $100. So if you gamble, and win $100, but then lose $20 afterwards, you will focus on the loss and often try to over compensate and make stupider bets, and then come out with -$200. Gambling is stupid like that, but people are addicted to it because of the emotional roller coaster it creates.
Truer Words have only been spoken by whoever wrote the book from which AI stole the idea that you just pasted here for me but that I have heard or read previously somewhere…
Amos Tversky: Known for his work on cognitive biases and the framing effect.
Daniel Kahneman: Known for his work on behavioral economics and the concept of loss aversion.
Richard Thaler: Known for his work on behavioral economics and the concept of nudges.
Herbert Simon: Known for his work on behavioral economics and the concept of bounded rationality.
My neighbor bought at $900,000. They eventually needed to move for work so they put the house up for sale at $1,500,000.00. A few months later to 1.3 million. Then weeks later $950,000. 4 days ago they switched it to for rent at $3,985 a month. Like dude, no matter what it’s too much! 900k is too much and the rent is too much.
Is Abysmal on both ends. Plus now as a rental that house will be incurring damage. But that’s how you end up owning two homes. You just can’t sale the first one so you rent it out.
I mean, your neighbor could ‘man up’ and just take a fucking loss.
It would be better to get the 800k and invest it, then have it locked up in a home that’s not appreciating or can’t be rented.
but hey, it’s 2026, nobody can ever take a loss on property values… the line must always go up and we’ll be stubborn idiots rather than take a minor loss…
almost like people are emotional and stupid when it comes to money… instead of pragmatic and smart. But I’m sure your neighbor has convinced themselves they are super genius by not dropping the price to one that would actually sell…
I’ve never been in that position. I wouldn’t give up trying. But then I would have never put myself in that situation in the first place.
The economists of it are clear. Every financial person would tell you sell the home, and invest the money.
But people are not rational or smart, they are emotional. Psych studies tell us we percieve the loss for $10 as far more painful than the gain of $100. So if you gamble, and win $100, but then lose $20 afterwards, you will focus on the loss and often try to over compensate and make stupider bets, and then come out with -$200. Gambling is stupid like that, but people are addicted to it because of the emotional roller coaster it creates.
Truer Words have only been spoken by whoever wrote the book from which AI stole the idea that you just pasted here for me but that I have heard or read previously somewhere…
Amos Tversky: Known for his work on cognitive biases and the framing effect.
Daniel Kahneman: Known for his work on behavioral economics and the concept of loss aversion.
Richard Thaler: Known for his work on behavioral economics and the concept of nudges.
Herbert Simon: Known for his work on behavioral economics and the concept of bounded rationality.
Oh man, that’s interesting.
yeah there is tons of good work on this. tons of podcasts on it too.
being emotionally detached from your money is usually the best way to be good with your money.