What is loss aversion?
Weighing a prospective loss more heavily than an equivalent gain, distorting hold and sale decisions (Genesove and Mayer, 2001). Corrected by valuing a hold as a fresh purchase at current value.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.