CalculateRealEstateROI

Investor Psychology

Loss Aversion

Psychological tendency to weight losses 2x as heavily as equivalent gains.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Why investors hold underwater properties too long and sell winners too early.

Examples

  • Refusing to sell a -$200 cash-flow property because 'it's almost back to breakeven.'

Common mistakes

  • Anchoring on purchase price rather than current opportunity cost.

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