shape and condition, as well as any rules that might limit how it can be used. The buyer of this land was knowledgeable and experienced in real estate development. He researched the zoning and found that the three acres were designated for high-density condominiums. The sellers, on the other hand, were unaware of both the zoning status and the county’s plans to build a new road bordering the property. As you can see, this situation didn’t end well for the sellers. They remained unaware that they left over $200,000 on the table until construction of the condos began.
AGENT AND BANK ERROR
Banks commonly presume that unsolicited offers from prospective buyers are below fair market value. In one notable case, a bank incurred a loss exceeding $30,000 by relying on this assumption. Two buyers, both highly interested in a property situated in a prime and unique location, submitted competing offers in an attempt to outbid one another. Both were willing to pay the fair market value of $100,000 for the property. Money was no problem; both buyers had the ability to pay in cash. Unfortunately, the bank refused to take these offers on the property. They would not budge until it was listed in the open market. For some reason, possibly due to an oversight, the property was listed at $67,000. First, the bank underpriced the property by $33,000. Second, they hired a real estate agent who failed to market it appropriately by not highlighting its development potential or promoting it to the right pool of buyers. Additionally, the agent entered the wrong address in the MLS listing, which caused the property to be excluded from search results used by buyer agents looking for
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