Selling a home is a very emotional experience. It can be extremely difficult to help your client separate their emotional ties to their home from the business strategy of selling their home.
Real estate blogger Eve Becker’s post on today’s Equifax Finance Blog offers advice based on behavioral economic factors that can help your client through this emotional process. There are five of these behavioral economic factors to understand:
1. Status quo bias
2. Loss aversion
3. Endowment effect
4. Anchor
5. Sunk costs
Becker’s post features advice from retirement author Jan Cullinane, who says that once these behavioral patterns are addressed, selling a home will be emotionally easier on your clients. “Knowing that you feel worse about a loss than you feel happy about a gain—and recognizing that intellectually—goes a long way to getting over that emotional hurdle,” Cullinane says. “Knowledge is power.” Read the full post on today’s Equifax Finance Blog.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.
Comments(3)