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Hotness Factor - How this benefits your clients
The Hotness Factor ... an often overlooked yet critical statistic to bring awareness to both buyers and sellers. It is a measure of the total number of homes in the market place that are listed in a price range and how many of that total are under contract.
Example: In the price range of $300,000 to $400,000 in a defined area there are 50 homes currently listed for sale. 25 homes out of the 50 are under contract. The formula - # of under contract homes divided by the total of listings will give the hotness factor. In the example you have 25 divided by 50 equals 50% hotness factor. This means that 1 out of 2 homes listed in this price point are under contract.
How the Hotness Factor is beneficial to buyers & sellers?
Lends understanding - Helps the buyer/seller visually understand the pace of the market. For a buyer it enables them to see competition in their purchase range. If it is a hot market price point, they will know that homes are selling well, probably quickly when first on market. Buyers may not have the luxury of time ... if they like it then make an offer or it ... more
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