Page 121 - Selling secrets 5 18 2023

The man who lived nearby knew the bank had been trying
to 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 on-line 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 offers and
likely started a bidding war. There 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.

The bank missed a full-price sale and lost $33,000. The
property was acres of raw pasture. There were no unseen
problems with it. The 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 $33,000
because the bank’s agent didn’t perform well and
substantially under-priced the property. The bank suffered a
significant loss.

ERRORS IN PRICE ADJUSTMENT ARE COSTLY

There are times when pricing adjustments may need to be
considered. For instance, let’s look at Joe and Shara’s
situation. Comparable Home A: $362,000. Comparable
Home B: $343,000. Joe and Shara’s Home: $342,000.
Comparable Home C: $342,000. Comparable Home D:

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