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 One of the most common ways sellers lose money on a home sale is by underpricing their property. Many homeowners assume their home is worth a certain amount without properly researching its true market value. As a result, they list the property at a lower price, sell it, and never realize the financial opportunity they missed. This is why understanding your home’s value in today’s market is critical. Take, for example, the unfortunate case of sellers who owned three acres of land valued at approximately $300,000. They sold it for just $80,000. The sellers lived 30 miles away and were unaware of the property’s development potential. Adding to the issue, they hired an agent unfamiliar with the area, who also failed to recognize the land’s true worth. Their buyer, on the other hand, was experienced and well- informed about property development. After researching, he 62
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