6 Tough Home Pricing Truths

The pricing conversation is always a challenge. You want top dollar for your home, and your real estate agent will, too. After all, a better commission comes from a better price. But a lot of psychology and strategy goes into home pricing, and if you don’t go in with your eyes wide open, you could end up heartily disappointed.

Here are some tough truths about home pricing. While they can vary a little depending on unique market conditions, they should all be in the back of your mind as you prepare to list.

1. Some agents will try and “buy the listing.” Sad but true: Some agents will tell you what you want for the home is accurate, even if it’s too high. Figuring they can manage disappointment and reductions down the line, the less-than-ethical agent will try and cut off the more honest competition by telling you the price you think you should get for the listing is the price you should shoot for.

2. Nobody cares what you paid for the home. No buyer in the history of real estate has ever agreed to pay more for a home because of the profit a a seller hopes to get. Yes, you may have sunk $150,000 in renovations into the basement, but the market will dictate the pricing, not what you “think is right.”

3. Lowball pricing is risky. Yes, you can generate a lot of interest by undercutting other listings on the market, but people may still attempt to negotiate. While you may stay firm on your price, you could find yourself making contract compromises you’d rather not make.

4. Precise pricing suggests you’re less wiling to negotiate. List a home for $403,750 versus $400,000 and you’re basically broadcasting a kind of inflexibility. This may or may not be part of your pricing strategy, but whatever you do, don’t do it unconsciously.

5. Seasonal timing can influence pricing. Are you the only comparable home on the market in January? You might be able to get a little more, especially if schools are good.

6. Infomercial pricing can make a difference. Have a million dollar home? Swallow your pride and try your hand in the $990K+ range. Slipping under the seven-figure mark can cast a slightly wider net for buyers.

Most homes sell within 3% of a market-savvy asking price, so go with an agent who is willing to explore the deep local conditions. Curious how much your home might be worth right now? I’d be happy to put together a no-obligation pricing matrix for you.

Jim Armstrong - 978-394-6736

How to Reduce Your Water Heater's Energy Use

Article From HouseLogic.com

By: Joe Bousquin
Published: June 20, 2013

Easy and cheap ways to make your water heater more energy efficient.

In the saving energy fight, the hot water heater is a born loser. That's because most of us have a conventional storage-type water heater.

That water storage tank works constantly to keep water hot and ready whenever you want it. But as the water sits, it naturally cools down, a process known as "standby heat loss." When the water cools, the burner or heating element kicks on to warm it up again, in a constantly repeating cycle.

Water heating is the second largest energy hog in your home, accounting for 14% to 18% of your household's total energy costs - between $400 and $600 per year. (Heating and cooling (http://www.houselogic.com/maintenance-repair/preventative-home-maintenance/heating-cooling/) is the #1 energy hog.)

Here are 5 tips to trim your water heating costs:

#1 Turn Down the Tank's Thermostat

For every 10 degrees you turn it down, you'll save 3% to 5% on your bill. Most water heaters come preset at 140 degrees, which has the added risk of scalding. The Energy Department recommends most households lower it to 120 degrees. That's high enough for your needs, and high enough to reduce mineral buildup in your tank and pipes.

Here's how to ensure you get 120 degrees:

          •First measure to see what temperature your water is at now. Don't trust the thermostat. They are often inaccurate. Instead, use a thermometer to measure the temperature of the hot water at the faucet farthest away from the heater.

          •To remember this setting, mark that temperature on your thermostat.

          •Now turn down the thermostat to what you think will be 120 degrees, based on your earlier measurement.

          •Wait at least 2 hours. Measure the water temperature again at the same far-away faucet. It may take a few attempts to get it right.

          •Once it's right, mark that spot on your thermostat so you'll remember it.

If the thermostat on your water heater doesn't have a numbered gauge, put it midway between the "low" and "medium" marks. Wait a day, and then measure the tap temperature as described above. Keep adjusting until you hit your target temperature.

Keep in mind that some water heaters have two thermostats - one for the bottom heating element and one for the top.

Related: 4 more effective ways to take back your energy bills

 #2: Use Less Hot Water

 One sure way to cut hot water costs is to use less of it. (http://www.houselogic.com/green-living/saving-water/)

 A family of four showering five minutes a day uses 700 gallons of water each week - a three-year supply of drinking water for one person!

Simply by installing low-flow showerheads and faucet aerators ($10 to $20 each), you'll cut your hot water consumption by 25% to 60%. Plus, you'll save on your water bill. That family of four using low-flow fixtures can save 14,000 gallons of water a year.

Also, make sure you use the "economy" setting on your dishwasher (http://www.houselogic.com/home-advice/appliances/dishwasher-buying-guide/), and break the pre-washing habit. Modern dishwashers can handle a dirty dish. Scrape what's left of dinner into the trash or compost bin and then load.

Related: Low-Flow Isn't What It Used to Be (http://www.houselogic.com/home-advice/plumbing/ultra-low-flow-shower-heads-more-less/)

 #3: Drain the Sediment

Tanks naturally build up sediment, which reduces efficiency and makes saving energy a challenge. ?Draining the tank will keep it running efficiently. And it's really easy to do:

          •Turn off the water and power to the unit. On a gas unit, set the burner to "pilot."

          •Connect a garden hose to the spigot at the base of the tank.

          •With the other end of the hose pointed at your floor drain, carefully lift the tank's pressure-relief valve and turn on the tank's spigot; water should begin to flow.

Tip: While most manufacturers recommend draining the tank once or twice a year, you don't have to drain it completely; in fact, the Department of Energy recommends draining less water more often - just a quart every three months.

Related: How to Care for Your Water Heater (http://www.houselogic.com/home-advice/water-heaters/water-heater-maintenance/)

 #4: Insulate Exposed Hot-Water Pipes

By insulating your hot water pipes, water will arrive at the faucet 2 to 4 degrees warmer, which means you won't have to wait as long for it to heat up, thus saving energy, water, and money.

While this isn't an expensive DIY job - 6-ft.-long, self-sealing sleeves ($2.50) easily slip over pipes - it could take effort, depending on where your hot water pipes are located. Exposed pipes in the basement are easy targets: Hard-to-reach pipes in crawl spaces or walls might not be worth the trouble.

#5 Insulate Your Hot Water Tank

If you have an older tank, and especially if it's located in an unheated space, wrapping it with an insulating blanket is a cheap and easy way to reduce costs.

Manufacturers have figured this out, so most newer models already are insulated. It's easy to find out which one you have. Look on its label to see if it has an R-value of at least 24. If not, you should insulate your tank.
With these older models, an insulating blanket can cut heat loss by 25% to 45% and save 4% to 9% on the average water-heating bill (source: American Council for an Energy-Efficient Economy (http://aceee.org/consumer/water-heating#minimize) ).

Insulating blankets are easy to install and inexpensive ($20). When dressing your tank for saving energy, be careful not to block the thermostat on an electric water heater or the air inlet and exhaust on a gas unit.

If you have a newer model that's already insulated, don't make the mistake of thinking you can get additional savings by adding a layer of insulation. It can block critical components and become hazardous. Check with your manufacturer.

Related:

          •When to Replace Your Water Heater (http://www.houselogic.com/home-advice/water-heaters/water-heaters-repair-or-replace/)

          •Water Heater Buying Guide (http://www.houselogic.com/home-advice/water-heaters/hot-water-heater-buyers-guide/)

          •The Good and the Bad About Tankless Water Heaters (http://www.houselogic.com/home-advice/water-heaters/tankless-water-heater-right-you/)

Massachusetts Home Prices Increase in December 2009

The sale prices of single family homes and condominiums in Massachusetts increase by double digit percentages in December 2009 over the same period in 2008. With help from the home buyer tax credit incentive, the average sale price increased 10.9 percent. This was the first double digit increase in home prices in over 4 years.

The number of units sold in December was also up over the previous year. There were 3007 single family homes sold in Massachusetts, a 14.6% increase over 2008. Condominiums had even higher numbers, with a 31.7% increase in units sold year over year.

Inventory levels have gone done for the 21st month in a row. A year ago we had 9.6 months supply of single family homes and 11.3 months supply of condos. Last month we had 7.2 months supply of singles families and only 5.6 months supply of condos.

Monthly numbers don't mean as much as yearly figures do because of short term fluctuations in the market. But the yearly figures look pretty good also. Sales of single family homes for 2009 were up by 4.1% over 2008. Although the median sale price was down 6.8%, much of the drop in price came from the beginning of the year. The number of homes on the market was down almost 16% over 2008.

Jim Armstrong

http://www.marealtor.com/content/NewsTicker.htm?view=38&news_id=1254&news=31