planning to build a new road bordering their property.
You can see where this one went. In the end, the sellers were not aware they left $600,000+ on the table until the condo-building began.
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 in the Bay Area.
Comparable Home A: $1,375,000 Comparable Home B: $1,349,000 Tim and Sue’s Home: $1,345,000 e: $1,345,000 Comparable Home C: $1,345,000 Comparable Home D: $1,333,000 Comparable Home E: $1,329,000
At first glance, Tim and Sue appear to have priced their home competitively for the market. But over the next month, the market shifts.
Comparable Home A: Expired Tim and Sue’s Home: $1,345,000 e: $1,345,000
Comparable Home B: $1,339,000 (Reduced Price) Comparable Home C: $1,335,000 (Reduced Price) Comparable Home D: Sold Comparable Home E: Pending Comparable Home F: $1,326,000 (New Listing) Comparable Home G: $1,325,000 (New Listing) Comparable Home H: $1,319,000 (New Listing)
Now, Tim and Sue have the highest-priced home in their range, and what once seemed competitive now appears overpriced. Buyers looking at the neighborhood will see their home as the
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