I understand your point completely. Additionally this is something that is more evident to Realtors then anyone else on this site because we see it first hand. I have a few sellers that will behave in this manner. One homeowner in Serra Mesa has a home that she absolutely will not price under 600k. It is a larger home and it is in good condition. However upon hitting the market back in the late spring my recommendation was in the 560-575k range. She said if she couldn’t get over 600k she would simply hold onto the home and let her brother live there. She has moved to Oregon. Again, this home has listed, expired, and listed again. It will expire soon and she will let her brother live there after it expires. Even though she knows it will not sell at that price, and she is likely to not see that level of desired pricing for many years, she is set to hold onto the home for the next several years until she can get what she really wants for it. So I would classify her as the type of homeowner you mentioned above. She has a ton of equity in the home and has owned it forever.
I think alot of people posting here do not have alot of face time with people like this…thus it is hard for them to understand that psychology. However you and I meet them and deal with them on a daily basis.
Still IMO, I think that people like her, and even myself will hold and be fine. However, fiscally I don’t agree with the decision (hers or mine). I do believe that selling now, and buying in a few years will yield better results for sellers and buyers of all types.
