reason. Banks will discount homes they sell because they sit empty for months, and the banks typically have no knowledge of their condition. In this case, though, the bank missed a full-price sale and lost at least $33,000! The property was acres of raw pasture. There were no unseen problems with it. The eventual buyer had lived down the road from it for years and was very familiar with it. He submitted their asking price, and the bank accepted it. He saved $33,000 because the bank’s agent didn’t perform well and substantially underpriced the property. The bank suffered a significant loss, and the buyer got a steal.
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: $1,008,000
Comparable Home B: $989,000
Tim and Sue’s Home: $985,000
Comparable Home C: $985,000
Comparable Home D: $973,000
Comparable Home E: $969,000
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