CHAPTER 9 Learn from Others' Mistak om Others' Mistakes
Price Your Home Wisely Understanding the true value of your home and pricing it appropriately from the outset is crucial to avoid costly mistakes. This chapter draws on real-world examples to show what can go wrong and how you can avoid similar pitfalls.
The Cost of Underpricing
Underpricing is the fastest way to lose money on a home sale. Many sellers set the price based on gut feeling rather than solid market research, resulting in a loss of potential earnings. For instance, the sellers who sold their development-ready land for a fraction of its worth due to a lack of area knowledge and poor agent advice demonstrate the importance of understanding your property's true potential.
The Perils of Banking Errors
Even banks can err in pricing properties, as shown by the case where a bank underpriced a unique property by $133,000. Errors in the MLS listing and marketing neglect resulted in a lack of visibility, leading to a foreclosure sale well below market value. This story highlights the importance of accurate pricing and effective marketing.
Adjusting Prices in a Shifting Market 33
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