Here in the Washington, DC area we are finding a real lack of inventory of available homes for sale. At every price point, this is hindering sales, building pent-up buyer demand, and in many cases, creating multiple offer scenarios. Compared to December 2011, the total number of homes offered at prices above $1M was lower by 13.1% in 2012. There was a 4.4-month supply of homes priced over $1M in December, compared to a 7.1-month supply just a year ago! That’s an inventory decrease of 38.8% and a sign that our market has gained incredible momentum in only 12 months.
So what’s the smart move a seller can make this year? Heed real estate’s modern mantra (it’s not just LOCATION, LOCATION, LOCATION anymore). Today, it’s VALUE VALUE VALUE. Think about thriving enterprises like Groupon and Living Social: they appeal to every value-driven, post-recession consumer. This thinking extends to home sellers too, and pricing is the lynchpin.
Price your home based on SOLD homes and you will capture its true market value and the attention of buyers. Fearful of underpricing or accepting the first offer? Don’t be. Buyers are armed with knowledge, they’ve looked at dozens of homes (maybe even hundreds if they’ve been looking online), and they know as soon as a new listing comes on whether it’s priced to sell or priced to sit. Price to sell and buyers (sometimes more than one) react quickly, writing strong offers. Price to sit….and it will…..and the longer it sits on the market the further away from the original asking price it gets.
For an accurate current market evaluation of your Washington, DC area home, please email Brad@Rozansky.com or call us 301-656-7700!