HOT MARKET

There are more Buyers looking than there are Sellers offering. Houses-properties are in demand. Buyers in a "hot market" are frequently more willing to overlook a few maintenance problems. In some cases, they are willing to overlook some serious problems.

Some Buyers tend to overlook a lot about a house's condition. They will either not buy or knock the price down. If its in "okay" shape, chance's are they won't complain. Buyers tend not to worry about the small stuff. 

WARM MARKET

A lot of Buyers and a lot of Sellers. Buyers don't feel compelled to rush in: Sellers are not worried that it may take 6 months to sell. Buyers take their time to find just the "right" property, usually selecting the one in the best condition in their price range. Sellers do the minimal amount of fix-up to get top dollar: any additional fixing is icing on the cake. 

COOL-COLD MARKET

Cool Market: Many houses for sale and few Buyers. As a result, prices drop. Example: Over-building: Economic/major employers leaving your area:

Cold Market: No Buyers. A Cold Market seldom occurs. Example: When oil prices collapsed in Texas & Oklahoma in 1980's: in the Midwest when agricultural prices collapsed 1980's. 

A good rule of thumb is to clear out all rooms of everything but the basics so Buyers can see themselves in the home. Clutter may slow down the sale and may cut back the price you are offered.

Source: Tips & Traps when Selling a Home By Robert Irwin