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 helpful to find out what other people have done wrong. 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 real understanding of the value of your home in today’s market. A perfect example is the sellers who sold a property — worth about $1,200,000 — for only $999,000. They lived about 300 miles away and didn’t realize the potential the property had. They hired an agent who was unfamiliar with the area and who also didn’t realize the potential. Their buyer was knowledgeable and experienced with the area. He researched the area and discovered the property was in an area that has become very popular. The sellers did not know about the changes, nor did they know the city was planning to build a new city park and sports center near their property.
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