How To Avoid Seller’s Remorse With Liquid Loans

It is cliche at this point but…

Laszlo Hanyecz, aka the "Bitcoin pizza guy" was a programmer and early Bitcoin enthusiast who famously made a Bitcoin transaction to purchase two pizzas for 10,000 BTC!!! on May 22, 2010.

At the time, Bitcoin was in its early stages and had very little value. 

But today the value of that Bitcoin is well over 100 million USD.

This is obviously an extreme example, but it illustrates Seller’s Remorse very well. 

What is Seller’s Remorse?

Seller's Remorse refers to the feeling of regret or unease experienced by a person who has sold something, such as a product, property, or investment. 

It occurs when the seller starts to doubt their decision and questions whether they made the right choice. 

This feeling can arise due to various reasons, such as receiving a lower price than expected, seeing the item appreciate in value shortly after the sale, or simply second-guessing the decision to part with the item. 

Seller's Remorse often involves an emotional attachment to the sold item or concerns about missed opportunities.

Seller’s Remorse in Crypto

Seller’s Remorse in crypto happens all of the time in less dramatic ways than the Bitcoin Pizza Guy.

For example, say somebody bought ETH at $5 and it quickly ran up to $10.

They just doubled their money and they are feeling smart.

But later that year, ETH reached another double, and now they missed their opportunity for a 4x.

Now they have the decision to wait for the price to come down (which it may never do) or they can buy back higher. 

Seller’s Remorse in Real Estate

Let's consider a scenario where Emily, a homeowner, decides to sell her house due to a job relocation. 

She lists her property on the market and receives multiple offers. 

In a rush to complete the sale and accommodate her move, Emily accepts an offer that is slightly below her desired price.

A few months later, Emily starts witnessing a significant surge in the real estate market in her area, with property values rapidly increasing. 

She begins to question her decision to sell her house and wonders if she should have waited longer or negotiated for a higher offer. 

Remorse sets in as she realizes that she could have potentially earned a higher profit if she had been more patient or made better negotiation choices.

Emily now feels a sense of regret and doubts whether she made the right choice by selling her home too quickly. 

She experiences a mix of emotions, including disappointment, frustration, and a feeling of missed opportunity.

Seller’s Remorse in Business

Seller's remorse in business/entrepreneurship refers to the feelings of regret or doubt experienced by individuals or organizations after selling a product, service, or business asset. 

According to a report by Exit Planning Institute, approximately 75% of owners who sold their business experience profound regret after a year.

Imagine a small e-commerce company that sells handmade crafts. 

The owner, Sarah, has a special collection of unique, handcrafted jewelry pieces that she has been selling successfully for years. 

However, due to personal reasons, Sarah decides to sell her entire inventory of jewelry to another business.

A few months after the sale, Sarah starts experiencing seller's remorse. 

She begins to regret her decision because she realizes that the jewelry collection had a strong and loyal customer base, and it had the potential for further growth. 

Sarah sees the new owner promoting the jewelry pieces and witnessing a surge in demand and positive customer feedback. 

This realization makes her regret selling her jewelry business and missing out on the potential profits and opportunities that could have come with it. 

Sarah now wishes she had held onto the business or explored other options to continue its growth.

Opposite of Buyer’s Remorse

Buyer's remorse refers to the feelings of regret or doubt experienced by someone who has made a purchase. 

It is a common phenomenon that occurs after the initial excitement of buying something wears off. 

The buyer may start questioning their decision and experiencing negative emotions related to the purchase. Here are some key aspects of buyer's remorse:

1. Regret
2. Financial Concerns
3. Cognitive Dissonance
4. Unrealistic Expectations
5. Comparison with Alternatives
6. Post-Purchase Analysis

Causes of Seller’s Remorse

Here are some potential causes of seller's remorse:

1. Emotional attachment: When sentimental items are sold, it can lead to remorse due to their personal significance.
2. Unrealized value: Regret can arise when the sold item's worth or potential usefulness is realized after the sale.
3. Nostalgia: Selling an item linked to cherished memories can evoke feelings of loss and longing for the past.
4. Buyer's satisfaction: Seeing the buyer express joy or satisfaction may make the seller question their decision.
5. Financial concerns: Regret may occur if the seller faces unexpected financial difficulties after selling an item.
6. Lack of alternatives: Remorse can arise if the seller didn't have a suitable replacement lined up for the sold item.
7. Peer influence: Disapproval or criticism from others can contribute to doubts and remorse.
8. Change in circumstances: Remorse may occur if the seller's circumstances change, revealing a continued need for the item.

Overcoming Seller’s Remorse

Overcoming Seller's Remorse can be as simple as refusing to sell an asset you think will appreciate or cash flow in the future (the golden goose).

However, people need ways to extract value from their assets while keeping them in their possession.

Home Equity Lines of Credit (HELOCs) provide this for real estate and Liquid Loans provides this for crypto in USDL loans.

How Liquid Loans Can Protect You from Seller’s Remorse

Our conviction at Liquid Loans is #neverselling.

This is because with Liquid Loans you literally never have to sell your PLS.

This can help avoid seller’s remorse because you can extract value from PLS and earn yield without losing custody or price exposure