• Market time
• Financing alternatives provided
• Condition of the property
• Exposure methods

The Real Value of Your Home is Based on Facts
A good Realtor® will show you the facts regarding realistically pricing your home. The most revealing fact about the real estate market in your area is how much money buyers have paid for homes similar to yours in the last six months. This information is known as comparable sales, which are available to every Realtor®.

You should not select your agent based on the price he quotes for the value of your home. Remember, the agent you choose is not buying your home; rather, he is responsible for selling your home.

The secret to getting the most money and the quickest sale with the fewest problems is to price your home properly. The facts are available, clear, and convincing. The best way to select a Realtor® is to find the person with the best strategy for marketing your home.

Advice About Pricing Your Home
When selling your home, one of the hardest things can be deciding on the price. The Russo Team experts can help you sell your home and price it correctly. The Russo Team is dedicated to helping you get the most money from the sale of your home. In addition, The Russo Team recognizes that there are many reasons you may already have a certain price in mind. Many of these factors, however, are not relevant to your home’s current market value, which the real estate market determines. For example, you may be considering…

Your Original Purchase Price
Even if you paid market value for your home when you originally bought it, the real estate market changes. Today, you must deal with the current market conditions.

Improvements
Improvements should be made for enjoyment, not resale value. You cannot add an item to your home, configure it to your style, and then expect the buyer to pay the original cost. Likewise, maintenance preserves the value, but does not create value. For example, if a new roof is needed as a maintenance requirement, it cannot be added to the market price of your home.

Your Need for Money
The simple fact that you need money or are moving to a more expensive area has nothing to do with your home’s current market value.

The Cost to Rebuild Your Home Today
Construction costs do not take into account the current real estate market conditions.

Your Personal Attachment
The factors above may influence the price in your mind, but really have nothing to do with the actual value of your home in today’s real estate market. Over the years, The Russo Team has heard many comments from sellers, including:

• “Another agent said my home was worth more money.”
• “People always offer less than the asking price.”
• “The buyers can always make an offer.”
• “We just painted and added new carpet.”
• “I need this much money for my next home.”
• “My neighbor was able to get his asking price for his home.”

Although some of these comments may be true, they are not valid when deciding on the right price.

How to Price Your Home Correctly
In order to price your home correctly and get the most money, follow these simple guidelines:

• If you are getting showings without offers, you are generally in the range of 4 to 6% above the market price.
• If the number of showings is low, yet you have many potential buyers drive by your home, then your home is 6 to 12% above the market price.
• If there is no showing activity at all, then your home is likely priced 12% or more above the market price.

The Pitfalls of Overpricing
You will lose the excitement that a new listing generates. Agents work with buyers that have witnessed the current real estate market and are looking for new listings. Therefore, most activity will take place within the first thirty days of a listing. Your home will probably receive the best offers during this time. After this initial period, the only people who come to look at your home are new buyers in the real estate market.

You will lose the most qualified prospects. Potential buyers will not “make an offer” the price is too high above market value, so they won’t take the time to view your home in the first place. Instead, these potential buyers will view the properties priced within their purchasing range because they cannot afford anything above their price range. Overpricing helps sell other, more competitively priced homes first. Your home may become the example demonstrating the good value of other properties. Your objective should be to enter the market in a position that will attract prospects – not drive them away.

Your home may become stale on the market. Prospective buyers may wonder why your home has been on the market for such a long period of time or if something is wrong with the property, even after you lower the price. You will likely have to settle for less than market value. Since a home takes on a reputation surprisingly fast, do not wear out your welcome on the market. You lose a strong negotiating position. When your house is on the market for a long period of time, it hurts you financially and mentally. Prospective buyers will not “rush” to make an offer on an overpriced property, and you may be faced with accepting less when they finally do.

If you receive an offer, the contract may fall through because of appraisal problems. The lender must justify the price of your home to the market in order to approve a buyer’s financing. The appraiser has a responsibility to determine the value of your home after an offer is accepted. As you can see, pricing your home correctly will make a tremendous different in how fast it sells. The Russo Team knows the real estate market and how to price our clients’ homes correctly. If we need to talk about the price of your home, we will call you – but don’t hesitate to call us first.