Paragon Realtors’ Alan Hamilton Breaks Down Our Hot Market

Paragon Realtors’ Alan Hamilton sat down with us last week to talk about our unconventional market. Headed into his 15^th year in the industry, he’s experienced at the real estate roller coaster from the ground up.  

In 2004, Hamilton started flipping houses with a pal. “I’ve always been handy,” Hamilton said. “I was always helping my dad with some project around the house, whether building a fence or a shed, or doing electrical or plumbing work, so I always enjoyed that side of the business. After the third or fourth house, we realized it would be wise for me to get my real estate license as a tool for our business. I grew up in Dallas and have a pretty extensive network here, so once I had my license, I had no time to flip!  I really enjoy real estate. As crazy as it can be, it’s still a business that offers flexibility if you manage your time well. 

CandysDirt.com: What is the driving factor in the market today?

Alan Hamilton: Lack of inventory is driving our prices higher. Years ago, days on the market (DOM) was a  big part of the conversation in a listing presentation. It was a selling factor. DOM no longer matters because sales happen so fast. For the most part, a good house with one or two DOM exposure will get multiple offers and a good price. 

CD: With the market moving so fast and multiple showings each day, how are sellers coping?

AH: Houses are getting so many showing requests that sellers will be displaced from their house the majority of the time it’s on the market. We’ve had as many as 29 showings on a house in two days.  We suggest sellers go away for the weekend and relax. Sunday, we’ll review offers and execute that night.   

CD: What is the most challenging part of this market?

AH: You have to react at the speed of light to any home that comes on the market. If you see a house online, go to see it in person immediately. Ten years ago, we could have a conversation with a buyer mid-week. We’d see a home on Saturday, think about it, and return on Sunday. That’s a non-existent scenario now. If it lists on a Wednesday, we see it on Wednesday.

CD: What’s the most frustrating part of the buying process now other than finding a  house?

AH: The multiple offer situation. I had one listing with 13 offers. The best offer generally reveals itself in a day or two. It’s frustrating if you are one of the first to see it, put in an offer, and the seller may want to wait a few more days until after their open house. By Friday, there are nine offers, and on Saturday, you thought you were up against nine, and suddenly you are up against 23. It’s not fun having to tell your clients they did not get the house.

CD: How should buyers be prepared for this market?

AH: Have your ducks in a row! A seller will not even consider your offer if you have a contingency unless you are under contract and it’s a done deal. Sellers have a lot of leverage on the terms. I’ve had folks have a 60-day leaseback. Often the seller has to rent temporarily.

CD: What are you telling sellers?

AH:  Pricing is an upward-moving shell game. For instance, if a house is pending down the street and listed aggressively, it may close for well over-list. That could be a comp for my listing. People also want a move-in ready home. Those are the ones flying off the market, especially over a million. At the end of the day, if the seller will listen to our advice in preparing a house for sale, they come out ahead. Think about a used car. You at least take it to the car wash and even get it professionally detailed before you sell it.  I think that’s just as important for houses. Spend $3-5,000.00, and you can list for $10,000.00 more. Pricing is everything. If you price at $420,000, you will lose those buyers looking under $400,000. If you list for $399,000, the odds are you will get multiple offers and end up over list price. All price ranges are moving fast, in my opinion. A very well-staged house in a great location that is move-in ready should sell quickly at any price point.

CD: Do you ever get a break?

AH: If I could press pause on the market for 4-6 weeks and turn it back on, I’d do it, but our business does not work that way. However, we are going to Costa Rica for a week! 

CD: What is the hottest area now?

AH:  Everywhere is a hot area!