There are a lot of fence sitting homeowners who want to move to another home. They may want to upsize, downsize across town or across country-size, but they are worried that they will lose money in the transaction. The fear of financial loss is keeping them from making a decision that they feel would be of significant personal benefit to them and their families. I understand the anxiety and hesitation, but don't feel that hesitation and indecision is of any benefit.
My investments include a position in a business development company, and the stock is down over 20% since I bought it. I'm sitting on it partly because the dividend is double digit, and partly because I think it has a chance of going up in value. The stock actually has a fair chance to post significant gains in the next few months. The reality is that I have already lost over 20% on that investment, and whether I realize the loss by selling is only relevant for tax reasons. If there's something I decide is better, it's gone in a heartbeat.
If your home has lost 20% or 30% or more in value, you can continue to pretend it hasn't really happened and stay there forever. If you want to live there until you die, there's nothing wrong with staying. However, if you have an opportunity and desire to improve your life and your family's comfort, there is no reason to wait. There's nothing that waiting will do but make you older.
Fear of losing money is holding many potential sellers out of the housing market. It has put lives and lifestyles on hold, and it is not good for anyone. The fact is that you already lost the money, and pretending that you haven't is not going to change reality. Let's all decide to move forward with our lives.
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