A Phoenix-area home was on the market for two years. The desperate owners continually dropped the asking price. One day a real estate investor sniffed a bargain and discovered the property was discounted below market value.
Detecting a gift horse, the investor immediately offered $100,000 below asking price in cash with a 10-day close. The owners snapped it up. Just 17 days later the investor re-listed and sold the home within a day at nearly full market value, netting a huge, fast profit.
What changed? Exterior and interior color, of course.
Money on the Table?
No one disputes the role of color in home selling. What can be vigorously debated is why home builders and developers aren’t doing more to take advantage of this obvious selling asset.
Just ask Shawn Hardy, senior vice president and general manager of integrated products at Associated Materials, the parent company for building materials brands such as Alside, Gentek, and Revere.
“Some builders take better opportunity of color than others, for sure,” says Hardy. “A drive through a new development often presents on-trend colors. But frequently the palette is very tight with only three or four colors represented. Why not six or seven colors? It’s an opportunity to broaden scope,” observes the veteran housing industry professional.