Sunk Cost

The price you paid for an item, be it a house or a compact disc, has nothing to do with its worth to someone else. Many garage sale proprietors, people trying to sell their decade-old “collectables,” and some people trying to sell a house in a buyer’s market frequently make this mistake. These people haven’t learned about sunk cost. They bought an item in demand and now they are in denial about its worth. Their asking price is too high so they can’t sell. They cling desperately to the idea that everyone else is crazy or stupid for passing up a great opportunity, never questioning their own rationality.When you’re selling something forget what you paid for it. It doesn’t matter to anyone, but you! What matters is the price the market will bear and what the item is worth to you. Be glad if the warm fuzzies you feel possessing a pristinely preserved Pokemon® card is worth more to you than the penny my son would give you for it; The market works.