foreclose on the property. He did some research on the foreclosure at the courthouse. He found out the bank had successfully foreclosed on it. Knowing it had to be listed somewhere, he went online and searched through all of the properties for sale until he found the listing. To his surprise, it was priced well below the market. Had the bank and agent not made mistakes, the two originally interested buyers would have made o ff ers and likely started a bidding war . Th ere is a good chance the two buyers would have driven the price up to the fair market value. Most bank-owned properties are priced below market for a reason. Banks will discount homes they sell because they sit empty for months, and the banks typically have no knowledge of their condition. Th e bank missed a full-price sale and los t $50,000. Th e property was acres of raw pasture . Th ere were no unseen problems with it. Th e buyer had lived down the road from it for years and was very familiar with it. He submitted their asking price, and the bank accepted it. He saved $50,000 because the bank’s agent didn’t perform well and substantially underpriced the property . Th e bank s uff ered a sign ifi cant loss. ERRORS IN PRICE ADJUSTMENT ARE COSTLY Th ere are times when pricing adjustments may need to be considered. For instance, let’s look at Tim and Sue’s situation: Comparable Home A: $868,000 Comparable Home B: $849,000 Tim and Sue’s Home: $845,000 Comparable Home C: $845,000 Comparable Home D: $833,000 Comparable Home E: $829,000 Tim and Sue appear to have priced their home competitively for
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