CHAPTER 12 Avoiding 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? During a divorce or separation, the bottom line is critical, as money can often be tight to begin with. 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, no less. The final story demonstrates how crucial it is to price your home right the first time in a changing market. NON-STRATEGIC UNDERPRICING IS AN EA G IS AN EASY WAY TO LOSE MONEY ON YOUR HOME SALE I mentioned in a previous chapter that "you can't price a home too low". Let's revisit that, as I want you to take that statement with a grain of salt. Rather, as we expand on that concept, the correct view on this is that you can't price a home too low within reason, based on data. The number one reason people lose money on their home sales is underpricing, but doing so blindly, or at the recommendation of an inexperienced agent who is shooting in the dark, or who hasn't bothered to do their research. These agents simply assume the home is worth ‘x’ dollars without researching values, then advise their clients to put their house on the market, sell it for less than it’s worth, and neither party realizes that a mistake was made. This 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 — f t $300,000 — for $80,000. r $80,000. 98
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