Jeeman your logic makes perfect sense. Unfortunately it is just that, to logical! Many times the homeowner with lots of equity is a little more…. ornary. Especially those that had MORE equity just a year or two ago. Thus they are the ones who are inclined to think that they can realize those paper gains if they have more patience. Also they tend to be more emotional about their home as they have owned if for so long. Furthermore these are usually people who are in no rush to move, they may be considering it, but can put it off for a few years down the road. Again, this is just my opinion but it is based on listing appointments with people of this strata. I try to tell them take less now beats taking alot less later but it usually does not register.
