CHAPTER 10 Learn From Other's Mistak om Other's Mistakes
To avoid selling your house for less than it’s worth and leaving money on the table, finding out what others have done wrong is helpful. These are examples of costly mistakes, including mistakes made by banks. The final story demonstrates how pricing your home right the first time
is crucial in a changing market.
UNDERPRICING: THE EASIEST WAY TO LOSE MONEY ON YOUR HOME SALE
The #1 reason people lose money on their home sale (as in, not getting all the money they could) is underpricing. They think their home is worth ‘x’ dollars without researching the value. They put their house on the market, sell it for less than it’s worth, and never realize their mistake. That is why it’s so critical you have a fundamental understanding of the value of your home in today’s market. A perfect example is the sellers who sold three acres — worth about $300,000 — for only $80,000. They lived about 30 miles away and didn’t realize the property's development potential. They hired an agent unfamiliar with the area and didn’t realize the development potential. Their buyer was knowledgeable and experienced with developments. He researched the zoning and discovered the 61
Powered by FlippingBook