CHM Blog

A surprising ‘secret ingredient’ that sells

Back in 1988, the story is told about a desperate homeseller who decided to warm up a loaf of bread to create a scent ambience as lookers came through his house. "I'd read that the fragrance of baking helps, so I bought a loaf of bread, and warmed it in the oven.” No sale.

So he baked a plum torte using a recipe he found in the New York Timesand — presto! With the kitchen infused with the sweet perfume of the Original Plum Torte, the house sold. The story had been posted as a comment on the now-viral recipe — now having racked up more than 18,000 reviews and a perfect five-star rating. Apparently, it's real estate magic.

Timing of this tidbit of news is everything. Because for the first time in years, homeowners are struggling to sell. Realtor.com’s Allaire Conte writes that this summer saw delistings surge dramatically. “For every 100 new listings that hit the market, 21 were pulled off entirely, " she says. It’s only logical, however, that as the housing market shifts from seller dominance to more buyer-friendly conditions, desperate homesellers are turning to creative tactics. Including baking.

“Scent science” isn't as far-fetched as it might sound. The scent marketing industry has grown into a $3.6 billion business built on the idea that smell is a powerful trigger for memory and emotion. Conte explains that unlike sight or sound, scent connects directly to the amygdala, which processes emotion, as well as the hippocampus, which stores memory. It’s the reason a familiar aroma can instantly transport you to childhood, and why scent-triggered memories feel more emotional and vivid than those sparked by other senses.

Of course, the retail world was way ahead of the curve. Conte points out how, in the early 1990s, neurologist Alan Hirsch discovered that floral scents boosted Nike customers' intent to purchase by up to 84 percent. Brands from Cinnabon to Samsung now use custom fragrances to spark emotional responses and build deeper brand associations. Magic indeed.

Real estate agents began the experiment using candles, but baked goods took the experience to a new level. “Sensory tools like smell are huge influences on buyers, although they may not realize it," Conte reports. The idea is that a plum torte doesn't just make a house smell like home—it might make buyers feel like it's already theirs.

Now. Pile that element onto a beautifully-staged home and the effect can be overwhelming. “When everything looks beautiful, feels welcoming, and smells amazing, that's when buyers fall in love with a property. And when people feel passionate, they pay top dollar,” says Conte.

Things don’t always come up roses, however. Conte asked Realtor Nancy Batchelor, who says the wrong kind of scent can also be an immediate deal breaker. "Mold and pet odors are the biggest turnoffs, and buyers will often walk right out the door." She's seen prospective buyers refuse to continue tours due to the allergic reactions triggered by pet dander, heavy candles, or even artificial air fresheners, noting that even pleasant smells can backfire. The agent recalls showing a multimillion-dollar property filled with cinnamon-scented candles in every room. The buyers completely lost interest because they felt the sellers were trying to cover something up. Overpowering scents can signal desperation or deception, even when the intent is simply to create ambience.

The secret, evidently, is to start with a clean slate. Eliminate cigarette smoke, pet odor, mildew, and mold – deal breakers for many buyers. “Once you have that clean slate, subtle and natural wins over overwhelming artificial fragrances,” says Conte. But she didn’t take everyone else’s word for it when writing the story. She decided to explore the plum torte's supposed powers for herself. Following the recipe, she slipped the torte into her oven and waited. “Within thirty minutes, my kitchen filled with the delicious aroma of butter, caramelizing sugar, cinnamon, and sweet plums.” She reports that while the combo felt vaguely seasonal, it was broad enough to avoid triggering specific associations that might alienate potential buyers. And that by the time the torte finished baking, the scent had drifted into her apartment building's hallway. She now says it’s easy to imagine how this aroma could set an open house apart and help buyers envision themselves making the space their own.

Agents will readily explain how selling a home is never simply about structure and price—it’s an emotional experience. And sometimes, a plum torte scent wafting through the air is just what might send a buyer over the top.

Realtor, TBWS

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I'm among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Neutral

Mortgage rates are under a little pressure today. The MBS market improved by +19 bps last week. This was not enough to decrease mortgage rates or fees. The market experienced high volatility last week.

This Week's Rate Forecast: Neutral

These are the three things that have the greatest ability to impact rates week. 1) Geopolitical, 2) Jobs, 3) The Fed.

1) Geopolitical: With the backdrop of ongoing global conflicts, we now have more Tariff Turmoil as an U.S. Appeals Court has ruled that the President does not have the authority to implement some of the tariffs. This will eventually end up in the Supreme Court and the tariffs will stay in place until then. However, new tariffs under that specific program will not happen.

2) Jobs: It will be Big Jobs Friday this week. But every day we will have a job or wage related data point with a deluge of other reports. On Friday, the focus will be on the revisions to the Non-Farm Payrolls and to see if the Unemployment Rate ticks up.

3) The Fed: We will get the Fed's Beige Book on Wednesday and have a slew of talking Feds this week. But the speakers on Friday will get the most weight.

This Week's Potential Volatility: High

This morning markets started under pressure due to renewed uncertainty around tariffs. Volatility has started at moderate to high levels and will likely stay that way this week.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

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