Why do some sellers cling to a house they no longer want?

Why do they turn down fair offers, then let the property sit for months?

Why do they say “I’ll think about it” even when they know the roof’s leaking, taxes are piling up, and they’re stressed every day they hold onto it?

Here’s the answer: Loss aversion.

It’s one of the most powerful psychological forces in decision-making, and it can stop even the most motivated seller from moving forward.

In this post, we’ll break down:

• What loss aversion is (in plain terms)

• How it shows up in real estate conversations

• What not to say when it’s at play

• Scripts and reframes that help sellers let go

• How to use this knowledge ethically (and effectively)

What Is Loss Aversion?

Loss aversion is a principle from behavioral psychology that says:

People feel the pain of losing something twice as strongly as they feel the pleasure of gaining something of equal value.

In other words, losing $10 feels worse than gaining $10 feels good.

In real estate, this shows up when sellers:

• Can’t let go of a number they heard 2 years ago

• Are more afraid of “leaving money on the table” than of daily stress

• Value “what they had” (memories, equity, potential) more than what’s realistic today

Even if your offer makes sense, loss aversion can keep them stuck.

How Loss Aversion Shows Up in Seller Conversations

Look for lines like:

• “It used to be worth $200,000.”

• “I already put so much money into that house.”

• “I’m not just going to give it away.”

• “That offer feels like a loss to me.”

They’re not thinking rationally. They’re reacting emotionally to a perceived loss, even if the house is draining them every month.

And if you push harder, you just reinforce the fear.

What Not to Do When Loss Aversion Shows Up

When a seller is caught in loss aversion, avoid these mistakes:

Arguing with their number

“But those comps are outdated…”
“That’s just not what the market says anymore…”

It makes them defensive. They feel like you’re invalidating their perspective.

Overloading them with logic

“You’re already losing money every month.”
“You said you don’t want to deal with this anymore, remember?”

They already know that. But emotionally, they’re stuck on the idea of losing value.

Making it about you

“I’m offering a great deal!”
“I’m trying to help you!”

It shifts the focus away from their pain, and makes it about your needs.

What to Say Instead: Reframing the Loss

The key to overcoming loss aversion is helping the seller reframe the situation.

Here are powerful, respectful ways to do that:

Shift from "what you're losing" to "what you're gaining"

“Instead of thinking about what it used to be worth, let’s talk about what life could look like without the stress, taxes, and maintenance.”

Normalize their perspective (then offer clarity)

“Totally fair. A lot of people I talk to feel the same way, especially when they’ve put time and money into the property. But if you’re open to it, I can show you what it looks like now and what your best options are moving forward.”

Validate, then offer peace of mind

“You’re not wrong to want to protect what you’ve built. My job is just to give you a path that feels like relief, not loss.”

Anchor to future pain, gently

“I’d hate to see this become something that weighs on you for another year. Even if you don’t work with me, let’s figure out what makes sense so this doesn’t become a bigger burden.”

From Loss to Relief

Let’s say a seller is holding out for $160,000, but you know the house is only worth $130,000 in its current condition.

Instead of saying:

“That’s just not realistic.”

Try:

“I get it, if I had a number in mind, it’d be hard to let that go. But I’ve seen sellers wait for that number and end up spending even more in taxes, repairs, and lost time. The goal here isn’t just price, it’s peace of mind. And I want to help you get there.”

See the difference?

You’re not tearing down their expectations. You’re guiding them toward clarity, and control.

How Goliath Helps You Handle Loss Aversion Like a Pro

Goliath lets you:

• Track emotional signals like “anchored price,” “frustration,” or “past value stuck”

• Tag sellers with loss aversion cues so follow-up messages match their mindset

• Schedule personalized, soft-touch check-ins that give the seller space

• Trigger re-engagement sequences that focus on emotional relief, not just price
  
  

It’s not about closing harder. It’s about listening smarter. Goliath gives you the tools to do that, at scale.

The Loss Isn’t Always Real, But the Emotion Is

Sellers don’t freeze because your offer is wrong. They freeze because, emotionally, saying yes feels like losing something important.

Your job isn’t to argue that feeling away. Your job is to give them a better feeling to move towards clarity, relief, simplicity, and closure.

Because once that feels better than the fear of loss?

That’s when they say yes.