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sunk cost

Why Historical Cost + Improvements ≠ Fair Market Value (Usually)

Seller Misconceptions “Sunk Cost”:  a retrospective (past) cost that has already been incurred and cannot be recovered. —Wikipedia What Sellers paid for their home ” and how much they subsequently put into it (for improvements, updates, etc.)  ” are important psychologically.* And, depending on how much the would-be Seller currently owes on their home, the sum of their cost + improvements...
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Why Historical Cost + Improvements ≠ Fair Market Value (Usually)

Seller Misconceptions “Sunk Cost”:  a retrospective (past) cost that has already been incurred and cannot be recovered. –Wikipedia What Sellers paid for their home — and how much they subsequently put into it (for improvements, updates, etc.)  — are important psychologically.* And, depending on how much the would-be Seller currently owes on their home, the sum of their cost + improvements...
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“Sunk Costs” and Underwater Homes

Homes That Can’t Be Bought or Sold “Sunk Cost“:  A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business may face, such as inventory costs or R&D expenses, because it has already happened. Sunk costs are independent of any event that may...
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Throwing in the Towel on a Buyer

Diagnosis:  Lack of Buyer Motivation Key Symptom:  Failure to Progress I certainly don’t do it often, but every couple years or so I find it necessary to “fire” a Buyer I’ve been working with. Or shall I say “non-Buyer.” While the specifics can and do vary, the root cause is invariably the same:   lack of...
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