UNDERPRICING IS THE EASIEST WAY TO LOSE MONEY ON YOUR HOME SALE The number one reason people lose money on their home sale is underpricing. Many sellers assume their home is worth a certain amount without researching its true value, list it for too little, and sell it for less than it is worth—without ever realizing their mistake. That is why understanding your home’s value in today’s market is critical. An example is a seller who sold three acres—worth approximately $2,000,000—for $1,500,000. • They lived 30 miles away and were unaware of the property’s development potential. • They hired an agent unfamiliar with the area. • Their agent also failed to recognize the development potential. The buyer, however, was knowledgeable and experienced in land development. He researched zoning laws and discovered the three acres were zoned for high-density condos. The sellers were unaware of this zoning classification or that the county was planning a new road right past their property.
BANK MISTAKE
Banks know that when a buyer makes an unsolicited offer, it is often below fair market value. However, mistakes still happen. In one case, a bank lost more than $300,000 due to mispricing and poor marketing. Two interested buyers wanted to purchase a property in an excellent location. Both were financially capable of paying the fair
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