CHAPTER 10 Learn From Other's Mistakes Learning from others is a great way to avoid costly mistakes yourself.
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. A perfect example is the sellers who sold three acres — worth about $300,000 — for only $80,000. They lived about 30 miles away and didn’t realize the development potential the property had. They hired an agent who was unfamiliar with the area, who also didn’t realize the development potential. Their buyer was knowledgeable and experienced with developments. He researched the zoning and discovered the three acres were zoned for high-density condos. The sellers did not know about the zoning, nor did they know the county was planning to build a new road bordering their property.
If buyer makes an unsolicited offer, most of the time, the offer is below fair market value. In one case, a Bank lost more than $30,000 on a mistake based on that assumption. Two people were interested in buying a piece of property the Bank owned. It was in an excellent location and unique among properties available in the
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