Montgomery County Area Real Estate Market Update | February 1, 2024

Montgomery County Maryland Real Estate Market Update -- February 1, 2024

Over the past month, we’ve witnessed a rise in the number of offers on properties in Montgomery County, Maryland. While the drop in mortgage rates to the 6.5% – 6.75% range has undoubtedly played a role, the persistent challenge remains low inventory.

For potential buyers, crafting a strategic approach with your agent is crucial in this competitive landscape. It’s a common misconception that homes lingering on the market for a few months are devoid of competition. More often than not, we’ve debunked this assumption as numerous homes, previously listed for 60+ days, suddenly garner interest from one or two prospective buyers.

The reason behind this phenomenon is simple—many buyers are just embarking on their home-buying journey simultaneously, particularly in the dynamic and transient Montgomery County near Washington D.C. There’s always someone else starting a new journey in life.

And for the better showing properties in the most desirable neighborhoods, you have to be prepared for even more competition immediately. Determining a the true price point where you will tap out and not compete is very important.

This is something we can discuss and strategize on. Another strategy I’ve used effectively is snatching up a property essentially before it hits the market, or immediately after it hits the market. And in all of these cases so far, every property has appraised.

Obsessing over the numbers and digging a little to find out what’s most important to the sellers is critical.

Now, let’s turn our attention to sellers.

Unless dealing with a luxury, multi-million dollar property, the absence of an offer within the initial two weeks (or even the first week) indicates that the home might be priced too high. Recent observations highlight instances where proper preparation and effective marketing could have maintained the initial listing price.

Our proactive approach involves thorough property walkthroughs before listing, identifying improvements that promise a 100%+ ROI, enhancing the property’s appeal, and accelerating the selling process.

As I’ve said on videos and posts for years now — no matter what the market conditions are — you will always command more money for your home and sell it faster for more money when we strategically market the best showing property at the sweet spot price. Even in the feeding frenzy markets of May 2020 through 2021, where multiple offers were flying in for homes, following this strategy ALWAYS got us more money for our clients selling their homes. There’s a difference between getting well over the list price, and getting another $10,000 or $20,000 more than that already “high” amount. I take it personally to do everything possible to squeeze out every dollar possible and the best terms for clients selling their homes — not just getting well above list price.

And some improvements are so simple, and cost so little. In walking through thousands of homes over the years, I’m baffled as to how someone has a home up for sale with missing light bulbs or burnt out light bulbs. To me this is unacceptable from a real estate professional end. I’ve personally put in 43 lights in a massive home where the owner didn’t reside any more. The difference in walking through the home afterwards was literally night and day. The cost was under $75 plus a few hours of time.

Now, here’s a critical piece of advice for sellers: Avoid the misconception that setting a higher price allows room for negotiation. In reality, most buyers are more likely to skip a property with an inflated price rather than submitting a significantly lower offer. Discovering the sweet spot in pricing, coupled with strategic marketing, not only attracts more prospective buyers quickly, but often results in a higher selling price than anticipated.

Always harness the power of FOMO (Fear of Missing Out) to create a sense of urgency and drive interest in your property. As we navigate the Montgomery County real estate market, let’s continue to adapt and thrive in these dynamic conditions.

And as always, please call or message me on 240-687-2650 with any questions.

If you know of a neighbor or colleague that might be moving in or out of town, please have them reach out to me so I can help them get the most out of the home selling and home buying process. That’s what I’m here for.

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