three acres were zoned for high-density condos. The sellers did not know about the zoning, nor did they know the county was planning to build a new road bordering their property. You can see where this one went. In the end, the sellers were not aware they left $350,000 on the table until condo-building began.
ERRORS IN PRICE ADJUSTMENTS ARE COSTLY
There are times when pricing adjustments may need to be considered. For instance, let’s look at Tim and Sue’s situation.
Comparable Home A: $1,599,000 Comparable Home B: $1,550,000 Tim and Sue’s Home: $1,540,000 Comparable Home C: $1,530,000 Comparable Home D: $1,495,000 Comparable Home E: $1,500,000
Tim and Sue appear to have priced their home competitively for the market. Over the next month, the market changes.
Comparable Home A: Expired Tim and Sue’s Home: $1,540,000
Comparable Home B: $1,510,000 (Reduced Price) Comparable Home C: $1,500,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $1,495,000 (New Listing) Comparable Home G: $1,480,000 (New Listing) Comparable Home H: $1,475,000 (New Listing)
Tim and Sue now have the highest-priced home in the area in their price range. When a buyer looks at the comparable home
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