CHAPTER 10 Other Mistakes
In this chapter, we’ll explore a range of costly mistakes that can occur in real estate transactions—whether made by banks, real estate agents, or buyers and sellers themselves. These examples will illustrate how missteps in pricing, timing, communication, or due diligence can lead to serious financial consequences. By understanding these common pitfalls, you'll be better prepared to navigate your transaction and protect your financial interests.
SELLER ERROR
Underpricing a home is the main reason sellers lose money during a sale. Many homeowners estimate their home’s value without doing proper research. They list the property, sell it for less than it’s worth, and never realize the amount of money they lost. Accurately assessing your home’s market value is a necessary step before listing it on the market. 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 were unaware of the property’s development potential. Then, they hired an agent who was also unfamiliar with the area and didn’t recognize its development potential. In this situation, the sellers should have consulted city officials or county planning and zoning officials, who could have provided detailed information about zoning regulations, permit processes, and the property’s allowable uses. Land use specialists or real estate development professionals also know the local market well and can offer insights into the property’s development potential. In addition, surveyors or land consultants can examine the land’s
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