COSTLY ERRORS IN PRICE ADJUSTMENT
There are times when pricing adjustments may need to be considered. For instance, let’s look at Tim and Shyla’s situation.
Comparable Home A: $368,000 Comparable Home B: $349,000 Tim & Shyla’s Home: $345,000 Comparable Home C: $345,000 Comparable Home D: $333,000 Comparable Home E: $329,000
Tim and Shyla appear to have priced their home competitively for the market. Over the next month, the market changes.
Comparable Home A: Expired Tim & Shyla’s Home: $345,000
Comparable Home B: $339,000 (Reduced Price) Comparable Home C: $335,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $326,000 (New Listing) Comparable Home G: $325,000 (New Listing) Comparable Home H: $319,000 (New Listing)
Tim and Shyla now have the highest priced home in the area, in their price range. When a buyer looks at the comparable home prices, it is now the worst value proposition in the marketplace. Most sellers, like Tim and Shyla, do not realize the market can shift so far, so quickly. It cannot be stressed enough how important it is for you to price your home right the first time. House D sold, and House E had a pending sale from the start.
APPLYING THESE STORIES TO YOU...
Moral of the story: Anyone or entity can lose money in the real
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