CHAPTER 12 Learn from Others’ Mistakes
To avoid selling your house for less than it’s worth and leaving money on the table, it’s helpful t o fin d out what other people have done wrong . Th ese are examples of costly mistakes, including mistakes made by ban ks. The fin al story demonstrates how pricing your home right th e fir st time is crucial in a changing market. UNDERPRICING: THE EASIEST WAY TO LOSE MONEY ON YOUR HOME SALE Th e #1 reason people lose money on their home sale (as in, not getting all the money they could) is underpricing . Th ey think their home is worth “x” dollars without researching the value. Th ey put their house on the market, sell it for less than it’s worth, and never realize their mistake . Th at is why it’s so important that you have a real understanding of the value of your home in today’s market. A perfect example is the sellers who sold three acres—worth about $300,000—for onl y $80,000. Th ey lived about 30 miles away and didn’t realize the development potential the property had . Th ey hired an agent who was unfamiliar with the area, who also didn’t realize the development potential . Th eir buyer was knowledgeable and experienced with developments. He researched the zoning and discovered the three acres were zoned for high-density condo s. Th e sellers did not know about the zoning, nor did they know the county was planning to build a new road bordering their property. You can see where this one went. In the end, the sellers were not aware they le ft
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