CHAPTER 12 Avoid Costly Mistakes
How can you keep from selling your house for less than it is worth? How do you avoid losing money on your sale? The first thing that you need to learn from is the mistakes of those who came before you. Below is an examples of costly mistakes by a seller. This story demonstrates how crucial it is to price your home right the first time in a changing market. BOTH UNDERPRICING AND OVERPRICING CAN CAUSE YOU TO LOSE MONEY ON YOUR HOME SALE Not having accurate information about the local market can cause sellers to under or overprice, both of which can cost thousands of dollars in lost profit. They assume their home is worth ‘x’ dollars without researching the value, put their house on the market, sell it for less than it’s worth, and never realize their mistake. Alternatively, overpricing a home causes it to sit for months, risking becoming a stigmatized property that the market rejects, or attracting bottom-feeder buyers that will offer at a steep discount. That is why it is so critical to have a true understanding of the value of your home in today’s market.
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: $1,008,000 Comparable Home B: $989,000 75
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