CHAPTER 10 Learn From Other's Mistakes
To avoid selling your house for less than it’s worth and leaving money on the table, it’s helpful to find out what other people have done wrong. These are examples of costly mistakes, including mistakes made by banks. The final story demonstrates how pricing your home right the first time is crucial in a changing market. UNDERPRICING: THE EASIEST WAY TO LOSE MONEY ON YOUR HOME SALE; USE AN EXPERIENCED AGENT The #1 reason people lose money on their home sale (as in, not getting all the money they could) is underpricing. They think their home is worth ‘x’ dollars without researching the value. They put their house on the market, sell it for less than it’s worth, and never realize their mistake. That is why it’s so critical you have a real understanding of the value of your home in today’s market. Don't rely on algorithms on websites created to draw in the average consumer. These sites simply average sale prices within a mileage range circle. Enlist in a real estate professional to help you determine a property's projected sale price. A perfect example is the Sellers who sold three acres — worth about $300,000 for only $80,000. They lived over 30 miles away and didn’t realize the development potential the property had. They hired an agent who was underexperienced and unfamiliar with the area and who also didn’t realize the development potential. Together they created a perfect storm. The Buyer was knowledgeable and experienced with developments. He researched the zoning and discovered the three
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