Setting the right price for your home is the most valuable thing you can do, even in today's seller's market. Yes, you want to sell your home for top dollar but if your asking price is not the result of market research, your house may be sitting on the market for longer than you wanted.

The Numbers

Here are some statistics... The total number of active inventory in Montgomery County during December 2021 was 610 compared to 1,053 in December 2020. The month's total of 610 is lower than the previous month's total supply of available inventory of 1,000, a decrease of 39%.....

The number of active home buyers continues to grow, according to Bright MLS, the month of December had 16,185 buyers actively working with a realtor....again, with only 610 homes available.

To Attract Maximum Buyer Interest In Your Property

When setting the right price for your home the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to come to see your home. Realistic pricing that is close to the true value of your home will help achieve a maximum sale price in a reasonable amount of time, whereas overpricing may cost you time and money. Generally, the price should not exceed the value by more than 5% of potential buyers may not even make offers.

Even with the low inventory of homes, your home is likely to sit on the market longer or require a price reduction that will induce a mob of buyers to come running to see the home if it is not priced correctly from the start.

Let's take a look at some common mistakes sellers often make.

Common Pricing Mistakes

-PRICING TOO HIGH FROM THE START Homes priced correctly when they first hit the market generally sell closer to the asking price than homes that start too high, then have to adjust downward.

-NOT BASING YOUR PRICE ON SOLD HOMES Remember, homes can be listed for any amount. What is most relevant is not the “asking price” but the “sold price” of nearby homes.

-“EMOTIONAL VALUE” VS “MARKET VALUE” Of course, it’s your home and you likely have many great memories that were experienced there. Keep in mind that potential buyers won’t have the same sentimental feelings for your home as you do. Try to stay as objective as you can during the process and it will help you meet your goals.

-REFUSING TO NEGOTIATE Your asking price may want to have some amount of built-in flexibility so you can entertain offers. Keep in mind, even a lower offer can be the beginning of a negotiation.

How to Price Your Home

You can be sure that your house is priced correctly by partnering with a trusted Realtor throughout the process. When your home is priced correctly from the start you won't be negotiating with one buyer. Ideally, you will have multiple buyers competing for the house potentially elevating the final sales price.

Bottom Line

1) Make sure that your home is priced to sell immediately, that is key. 2) Make sure that your home reflects the list price that you are commanding. and above all else 3) get yourself a Realtor that knows the market in your area, someone that you trust.