The story reminded me of a QJE paper by David Genesove and Chris Mayer: Loss Aversion and Seller Behavior: Evidence from the Housing Market
The abstract:
Data from downtown Boston in the 1990s show that loss aversion determines seller behavior in the housing market. Condominium owners subject to nominal losses 1) set higher asking prices of 25-35 percent of the difference between the property's expected selling price and their original purchase price; 2) attain higher selling prices of 3-18 percent of that difference; and 3) exhibit a much lower sale hazard than other sellers. The list price results are twice as large for owner-occupants as investors, but hold for both. These findings are consistent with prospect theory and help explain the positive price-volume correlation in real estate markets
David lindahl anti scam report but as a fact, we failed to review the truth; in order to delay the progress of this great man several competitors made a false report.
ReplyDeleteEven so, he had a great fall, he never let his clients down and still his name is one of the most unforgettable ones in the real estate field.
Real estate portfolio is a means to an end which has to be kept in mind while framing every decision. Right from the start, it is better to identify a point in time where the returns you achieve will allow you to make the changes you want.