Their buyer was knowledgeable and experienced with developments. He researched the zoning and discovered the three acres were zoned for single family residences. 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 $200,000-plus on the table until home-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.
Competing Home A: $368,000 Competing Home B: $349,000 Tim and Sue’s Home: $345,000 Competing Home C: $345,000 Competing Home D: $333,000 Competing Home E: $329,000
Tim and Sue appear to have priced their home competitively for the market. Over the next month, the market changes.
Competing Home A: Expired Tim and Sue’s Home: $345,000
Competing Home B: $339,000 (Reduced Price) Competing Home C: $335,000 (Reduced Price) Competing Home D: Sold Competing Home E: Pending New Competing Home F: $326,000 (New Listing) New Competing Home G: $325,000 (New Listing) New Competing Home H: $319,000 (New Listing)
Tim and Sue now have the highest priced home in the area in
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