is a good chance the two buyers would have driven the price up to the fair market value. Most bank-owned properties are priced below market for a reason. Banks will discount homes they sell because they sit empty for months, and the banks typically have no knowledge of their condition. The bank missed a full-price sale and lost $33,000. The property was acres of raw pasture. There were no unseen problems with it. The 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 performwell and substantially under-priced the property. The bank suffered a significant loss. 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: $368,000 Comparable Home B: $349,000 Tim and Sue’s Home: $345,000
Comparable Home C: $345,000 Comparable Home D: $333,000 Comparable Home E: $329,000 Tim and Sue appear to have priced their home competitively for the market. Over the next month, the market changes. Comparable Home A: Expired Tim and Sue’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)
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