that type of property.
After the bank declined the offers made by the first two buyers, each patiently awaited the listing’s appearance. When it failed to show up in search results, both buyers eventually gave up and moved on to pursue other properties. Meanwhile, the property remained on the market, unnoticed and overlooked. Due to the agent’s errors, no interest was generated, and ultimately, the property went into foreclosure. If the bank and their real estate agent hadn’t made these mistakes, the offers from the first two buyers would likely have sparked a bidding war. It’s quite possible that the competition between them would have driven the price up to the fair market value.
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
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