Monday, September 30, 2013
The valuation delusions-3
This valuation is most glaringly on exhibit when you are trying to sell the house. But you can find that more or less in everything we as human beings own, it is hard to part them unless you get what you have paid for in financial and sentimental terms. You can see it in flea markets, while you are selling cars and whenever you are dealing with other individuals, you get blinded by the attachment that you have with the product and then you get disappointed if the thing has more sentimental value that the buyer is paying for. It is not to say that I am not like that I have also invested money in my property but I am also realistic that I will not be able to get closer to what I paid for since the market and economic conditions have changed. I know it is heart wrenching when you don’t get what you think is the fair price but that is how the world works and if you are desperate to sell them, then you would not care if the price you are getting is the fair price. Sometimes you have to think with your mind rather than with your heart. And even if you think that you have snagged what you perceived to fair value for house, note that you will probably end up with less money since when you brought the house the value of money has gone down. So stay out of this valuation delusions and concentrate on your next purchase because of course you would give your own valuation when buying from somebody else and this cycle of which is the right valuation starts over again.