Page 119 - Selling secrets 5 18 2023

CHAPTER 11

Learn from Others’ 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

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 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 only $80,000. They lived about 30
miles away and didn’t realize the development potential the
property had. They hired an agent who was unfamiliar with
the area, who also didn’t realize the development potential.
Their buyer was knowledgeable and experienced with
developments. He researched the zoning and discovered the
three acres were zoned for high-density condos. The 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 left $200,000-plus on the table until condo-
building began.
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