Orange County Housing Report:

SHOWCASE HOMES

BUYERS ARE COMPETING FOR TURNKEY HOMES, WHERE PRICING, CONDITION, UPDATES, AND UPGRADES CREATE BUYER URGENCY AND
MULTIPLE-OFFER SITUATIONS.

Today’s housing market is considerably slower than it was during the heyday of the pandemic. But that does not mean that homes are not flying off the market. Many buyers mistakenly believe that they can get a “deal” on every home without really knowing the facts. In April, 34% (642 of 1,885) of all Orange County homes sold for more than their last asking price, with a median time on the market of 7 days. The median amount paid above the asking price was $29,000.
Another 18% (332 of 1,885) of all homes sold in April were sold at the last list price, with a median time on the market of eight days. And 48% (911 of 1,885) sold below the last list price with a median time on the market of 28 days. The median amount paid below the asking price was $35,000, and it took about a month to secure success. 

Buyers look at their favorite real estate app morning, noon, and night, anxiously waiting for anything new to hit the market. When something does, they examine every photo, view the virtual tour, and then look at the price. Showcase homes attract buyers because they are not only turnkey and ready to go, but also priced right. They sell for above the asking price because they attract the interest of several buyers simultaneously. When there is only one home, one seller, and multiple buyers, buyers compete for the home, and it ultimately sells above its asking price in a very short time Homes that require work, have deferred maintenance, are in a poor location, or lack updates and upgrades can still attract a buyer, but they must be priced according to their
Fair Market Value, taking into account their limitations. These homes are excellent candidates for buyers looking to negotiate, as they typically do not attract multiple offers and sell for less than their asking price

Showcase sellers know buyers want a turnkey home that doesn't need any work before moving in. Buyers are sensitive to the condition of a home, the flooring, paint, appliances, cabinets, countertops, light fixtures, custom built-ins, window coverings, landscaping, curb appeal, upgrades, and amenities. Before touring a home, buyers look at every detail. Finally, they look at price. When a home checks all the boxes and is accurately priced, it attracts plenty of activity, multiple offers, and sells for top dollar. They have the “wow” factor, and their success was carefully planned.

ATTENTION BUYERS: Do not set limits on NOT paying at or above a home’s asking price. A revealing 52% of all closed sales last month sold at or above their asking price, and they sold very fast. Homes with all the bells and whistles, priced right, attract plenty of buyer activity. Buyers who are unwilling to compete limit themselves and will not be able to purchase an attractive showcase home.

ATTENTION SELLERS: Preparation before listing a home is essential in maximizing a home’s top dollar. Preparing a home is not a simple process. In the weeks or months leading up to listing a home, addressing its overall appeal, condition, updates, and
upgrades, and then meticulously arriving at its asking price, will result in increased buyer activity and a sale at the highest possible price.

Excerpt from Stephen Thomas OC Housing