Holly Worthington – holly@lnf.com
202-363-9700

Housing inventory nationwide has steadily declined over the last year, with the fewest homes on the market since December 1999. A number of factors have conspired to create this phenomenon: new construction is still recovering from a lull after the market crash, college grads are beginning to move out of their parents’ homes, singles are gaining buying ability, and investors are purchasing a whopping 23% of the market (half of which is paid for in cash).

Inventory in DC is particularly scarce. For instance, at the end of February 2013, there were 498 active condos on the market. Last year at that time, there were 818 -- and inventory was way down even then.

While the atmosphere is a frustrating one for buyers, it spells opportunity for sellers. To get the scoop on what sellers can do to take advantage of the current market, we spoke with Long & Foster’s managing broker Holly Worthington.

Here are Worthington's six tips for sellers:

1. When setting your price, give extra weight to sales from the last two to three months only; they will be the most relevant in a market that changes almost monthly.
2. Start your price at or slightly below (by approximately 1% or 2%) what the market is expected to yield. The bidding this will generate will most often drive a higher price and strengthen your terms.
3. Inventory below $600K everywhere is especially tight, so the more attractive the asking price on a property in that range, the greater chance your property will inspire bidding and a higher price.
4. List your house on Friday and make it as accessible as possible on Saturday and Sunday. Most buyers look at houses on the weekend and are available to write offers then.
5. Feel out interest. If you list on Friday, give until at least Monday or Tuesday afternoon as a deadline for offers. That way, all interested parties will have a chance to write an offer. A good rule of thumb is that the number of offers a property receives is proportional to the percentage above asking price that a seller can get. For instance, 10 offers will often yield at least 10% over asking.
6. Properties should be shown in excellent condition, and should be both freshly painted and staged. If, however, the property is in need of a complete renovation, it should be left as is. A little fix-up on a poorly maintained property isn’t worth the seller’s money.

If you live in the DC metro area and are interested in selling your home, Long & Foster is available to answer any questions you may have. For more information, contact Holly Worthington by phone (301-943-0314) or by email.