The Hot Market vs. the Not Market
by M. Anthony Carr
However, in the midst of this slow-moving market, there is a market that is hot as blue blazes — steaming with multiple contracts, escalating prices and sellers walking away from the settlement table in less than a few days of marketing their homes, taking nearly half the amount of time to sell. This is what I call a Hot Market.
Hidden inside this market, there are various types of homes that are selling even quicker. For instance, there is barely a 6-week supply of townhouses priced under $300,000 in Burke, Virginia. That’s right, these homeowners are, technically, in the middle of a sellers market, but because they are surrounded by a 9-month market, they can’t take advantage of it. It’s definitely a buyer’s paradise.
The overwhelming majority of houses, however, are in the Not Market — the market that’s not selling quickly, requiring even larger price drops and seller concessions IF they happen to draw an offer from anyone.
So what would it take to turn this market around? Price and condition. That’s it. Nothing more, nothing less. As a case study take what new home developer KHovnanian did a few weeks ago. The marketing department came up with a great idea — let’s drop our prices and double our seller subsidies. These were price drops of up to 30 percent and closing costs of up to $20,000. Guess what. It worked. Nationwide, regardless of the marketplace, it worked. They’re goal was 1,000 units — they sold 2,100.
I was in a house the other day. The seller was being transferred and had not been able to sell before needing to move. So now it was going to be on the market vacant — the worse case scenario. In addition, it had some condition issues. The house had not been freshly painted; there was pet odor throughout; the exterior had not been freshened up (powerwashed, painted, etc.) and there had been daily-living clutter in the home during the time it had been on the market.
So the house will now sit there even longer, while homes surrounding it will sell. So here’s the list of actions to take to put your home in the Hot Market vs. the Not Market.
Paint. Do I really need to mention this? Please, sellers, you’re not selling a car. It’s a half-million dollar house, for cryin’ outloud.
Renovate the kitchen/bath. New counters, painted or replaced cabinets, upgraded flooring, will wow the buyers. The cost is up to you, but don’t be cheap. I saw a townhouse with a remodeled kitchen for less than $15,000 — maple cabinets, granite counters and ceramic tile with stainless steal cabinets. The owner did a great job in finding a good installer and a budget renovation.
On the other hand, don’t over renovate either. If your community will get by with new oak cabinets and a laminate floor — don’t do the cherry cabinets with granite counters and ceramic tile.
Odors. Again, need I say more? There’s no bigger turn off than either pet or food smells. If you have cats or dogs, replace the flooring and fumigate. If you eat spiced foods, eat out while the house is on the market. I have seen buyers take a house off the list without even seeing it when it says, “Friendly dog,” “Don’t let cat out.”
Declutter. This means every room for the whole time the house is on the market. Rent a storage bin. Pull out nearly everything. Look at new homes in your area as a way to see what looks good. You’re now selling a product, not living in a home.
If your home is on the market — be honest with yourself. It’s not the “market” it’s not your agent (well, it could be). And it’s not the competition. It’s your house. Is it in pristine, like-new condition and is it priced right? If you can answer “yes” to those two questions, then your home will enter the Hot Market.
