value, or even higher. But the bank suffered a significant loss due to these errors.
ERRORS IN PRICE ADJUSTMENTS ARE COSTLY
There are times when pricing adjustments may need to be considered. For instance, let’s look at Tim and Sue’s situation.
Comparable Home A: $968,000 Comparable Home B: $949,000 Tim and Sue’s Home: $945,000 Comparable Home C: $945,000 Comparable Home D: $933,000 Comparable Home E: $929,000
Tim and Sue appear to have priced their home competitively for the market. Over the next month, the market changes.
Comparable Home A: Expired Tim and Sue’s Home: $945,000
Comparable Home B: $939,000 (Reduced Price) Comparable Home C: $935,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $926,000 (New Listing) Comparable Home G: $925,000 (New Listing) Comparable Home H: $919,000 (New Listing)
Tim and Sue now have the highest-priced home in the area
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