Reply to Redfin "hot homes"

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[quote=Anonymous]I think that the problem with the "hot homes" algorithm is that it is based entirely on stats (e.g. price per square foot, number of bedrooms) without any reference to the actual condition of the home.  For example, in the area we've been looking I've seen lots of houses labeled "hot" because they are priced lower than comparable sized houses because they need TONS of work.  However, these houses in reality actually sit because they are priced too high for developers (who I guess don't feel they'd be able to make adequate profit doing a flip) and too high for regular buyers (because the amount of work needed more than offsets the lower price compared to houses in good condition).

We also recently saw a house on Capitol Hill that was labeled as hot but, several weeks later, still hasn't sold.  The bedrooms were oddly sized/shaped and there was visible water and mold in one of the bedrooms.

For those houses that are in good condition and competitively priced, I'm not sure if the "hot homes" label is so much a self-fulfilling prophecy as opposed to just stating the obvious -- I think those houses would sell quickly in most cases label or no.  But for those that have something wrong with them that the algorithm doesn't take into account (e.g. the weird room layouts) then I think it actually can be counterproductive because I think it can make the seller hold out at their original price (Redfin says that this house should sell at this price!) when they otherwise might have lowered the price after 2 weeks because it didn't sell.
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