Today’s real estate market has proven to be volatile, unpredictable and unstable, way beyond the predictable time frame. Foreclosure, REO’s, tighter loan restrictions, and loss of value has brought our Real Estate Market here in Hawaii to a crawl. While I don’t have a crystal ball, after 20 years in real estate I do agree with market analysts that our local housing prices are not going to rocket upward any day soon.
That said, properties are bought and sold on the Kohala Coast everyday. This area of the Big Island offers both primary and secondary homes in such diverse communities that Buyers come from the local area, the Mainland and Internationally.
NOTE: Over 90% of Home Buyers start their home search online. With internet sites like trulia.com, zilllow.com. and realtor.com – Buyers are well-informed of market pricing and supply. Long gone are the days of the traditional fancy brochure and print ads strongly influencing people in their purchasing decisions. Today, it’s about savvy research that is readily available 24/7.
3 Types of Sellers
#1 “Have to Sell” Sellers. The economy and the financial crisis have unfortunately put many property owners in a position that they need to sell. Facing a possible foreclosure or needing to liquidate a vacation home is a difficult situation. Knowing that the market value of real estate has declined significantly since the market peak in 2006, doesn’t help.
Many times these Sellers will logically position their properties somewhat below current fair market value to get a fast sale. Now, some “Buyers” will see the list price below market and feel the best course is to make unreasonably low offers in the off chance that the Seller is that desperate. To those offers, Sellers many times won’t even respond.
Reality – those “dream property steals” are few and far between. Mostly, they will be seen in the “short sale” arena and that is a competitive and time-consuming under-taking in which…the property price is bid up.
Bottom-line to Buyers: If you sincerely want to acquire a property, recognize a good deal when you see it and be prepared with financing because these good deals are selling everyday.
#2 “Unrealistic Sellers” These Sellers list their homes unrealistically over the Broker Price Opinion (current market value). They will describe their situations as “We’re not in a hurry” , “We’re not going to give it away” or “We’re Thinking of Selling and would like to ‘test’ the market”.
This philosophy may have made some sense in the mid-2000s when the market was falsely rising 10-20+% per year. Today however, the real estate market is not rising and experts feel price appreciation in the next 3 years will be very modest if at all.
By positioning homes over the current market, Sellers can sit and wait 1 year- 2 years, and longer! A home languishing in the MLS for years is having it’s marketability degrade over time. Realtors won’t waste their clients’ time showing these unrealistic properties.
Reality – Accepting where the market value for your home is these days can be difficult for Sellers. Unfortunately, the REO”S and Foreclosures prices in the Kohala region, like the nation, have had an enormous impact on the overall market value of properties. Knowing that values have fallen somewhat – is very different than actually seeing the pricing of homes that are selling vs. those that are languishing on the market.)
Bottom-line to Sellers: When you want to SELL your home – the property should be realistically positioned at the current market value with careful adjustments made for location and home condition. If you are not ready to sell – do not put the property on the market.
#3 “The Serious Seller”. These Sellers have a plan mapped out and know where they want to be and when. They know the market. They know that the Broker Price Opinion is based on the evaluation of current sales in the area. They position their properties AT market. (NOTE: In a professional Broker Price Opinion, the Broker will evaluate current relevant housing information from your competitive market area, your specific property and then recommend a list price. Typically, the list price that is recommended if correct, will fall within 10% of the final selling price.)
Bottom-line to Sellers: By realistically positioning your home at current market value and working with your Real Estate Agent through the marketing of the home, your property should have success in this market above your competitors.
Reality – Homes are being sold & bought everyday in the Kohala Coast area. From multi-million dollar properties on the ocean, to condos on golf courses, to homes in Waikaloa, Estates Homes in Mauna Kea and to charming cottages & lots in Waimea. It’s all a question of finding the true current market value of the property.
Do you know the value of your property? You should – it just makes sense. Contact Cook Walls Inc. for a No Obligation, Free Brokers Price Opinion.
808 882-7760 | Email cwi@livekohala
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