CHAPTER 12 Avoid Costly Mistakes
How can you keep from selling your house for less than it is worth? How do you avoid losing money on your sale? The first thing that you need to learn from is the mistakes of those who came before you. Below are some examples of costly mistakes made by all kinds of sellers, including those made by a bank. The final story demonstrates how crucial it is to price your home right the first time in a changing market.
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. They assume their home is worth ‘x’ dollars without researching the value, put their house on the market, sell it for less than it’s worth, and never realize their mistake. That is why it is so critical to have a true 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 $80,000. • They lived about 30 miles away and didn’t realize the development potential the property had. • They hired an agent who wasn’t familiar with the area. • Their agent didn’t realize the development potential either. Their buyer was knowledgeable and experienced with developments. He researched the zoning and discovered the three acres were zoned for high-density condos. The sellers did not 74
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