If you've been watching the local housing market lately, you've probably noticed that inventory is tight in many price ranges right now in Harrisonburg and Rockingham County. 

What does that mean if you're getting ready to sell a home in one of those price ranges with lower than normal inventory levels?

1.  It might mean a buyer pays a little more than they otherwise would.

When there are fewer homes to choose from, buyers aren't likely to be able to (or to try to) negotiate much on price.  They might be willing to pay a bit more than they would have if inventory levels were higher.  If your home is one of two options instead of one of ten, those limited choices can cause a buyer to pay a bit more than they might have otherwise.

2.  It might also mean a buyer overlooks something that isn't quite perfect.

Maybe the kitchen needs updating, or the flooring should really be replaced.  Maybe the layout is a little awkward. In a market with more inventory, a buyer who looks at that home might just keep shopping. In a tighter market, they might decide it's good enough... especially if the alternative is waiting around for something better to show up.

3.  But a buyer probably won't pay drastically more than recent comparables suggest.

Low inventory can create pressure on buyers to pay a bit more, or even a bit more after that - but it doesn't totally override the impact comps. Buyers (and their lenders, and their appraisers) are still looking at what similar homes have actually sold for. A tight market might nudge things up a little. It's probably not going to convince someone to pay 10% to 20% over what recent sales supports.

So... if you're selling into a low inventory market, what should you take from this? 

I think it's fair to expect a little more interest, possibly more offers, less attempted negotiations from buyers, but I wouldn't recommend price your home assuming buyers will ignore the comparables altogether.