discovered the land was zoned for high-density condos. He also learned the county was planning to construct a new road that would further enhance the land's value. The sellers, unaware of these factors, lost out on more than $200,000. They didn’t realize their mistake until construction on the condos began.
BANK ERROR: WHEN A LIS R: WHEN A LISTING MISTAKE COSTS THOUSANDS
Even banks aren’t immune to underpricing mistakes. In one case, a bank lost over $30,000 due to poor pricing and mishandling of a property sale. Two buyers were interested in a unique property in an excellent location. Both were eager to make offers before someone else could snatch it up. Each was willing to pay the property’s fair market value of $100,000, and both had the means to pay in cash. However, the bank decided not to accept offers until the property was officially listed on the market. When the listing finally appeared, it was priced at just $67,000—an underpricing error of $33,000. Worse, the agent hired by the bank made several critical mistakes. The MLS listing contained errors that prevented the property from appearing in search results. The address was entered incorrectly, so it didn’t show up on real estate websites with map displays. To make matters worse, the agent failed to place a sign on the property to attract local interest. As a result, neither of the two initial buyers saw the listing. Frustrated, they moved on to other properties. Meanwhile, the undervalued listing sat unnoticed. Eventually, the property went into foreclosure. A neighbor who drove past the property daily noticed its condition and decided to investigate. He discovered the
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