AFY Max Hahne - Biz-Card V1 Canada - 2492

CHAPTER 10 Learn from Others' 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 three acres — worth about $750,000 — for only $150,000. They lived about 20 kilometres away and didn’t realize the development potential the property had. They hired an agent who was unfamiliar with the area, someone who also didn’t realize the development potential. Their buyer was knowledgeable and experienced with 79

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