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, it’s beneficial to learn from the mistakes of others. These examples highlight costly errors, including those made by banks. The final story illustrates how pricing your home correctly from the start is
essential in a changing market.
UNDERPRICING: THE EASIEST WAY TO LOSE MONEY ON YOUR HOME SALE
The primary reason people lose money when selling their home—meaning they don’t get the full value they could—is underpricing. They believe their home is worth ‘x’ dollars without properly researching its value. As a result, they list their house, sell it for less than it’s truly worth, and fail to recognize their mistake. This underscores the importance of thoroughly understanding your home’s value in today’s market. A perfect example is the sellers who sold three acres—valued at around $300,000—for just $80,000. They lived about 30 miles away and were unaware of the property’s development potential. They hired an agent unfamiliar with the area, who also overlooked its development possibilities. The buyer was knowledgeable and experienced with developments. He researched the zoning and discovered that the 64
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