Recently, I was thinking… “Why did I overprice my house back in 2006 when the comps said it might sell for $1,125,000?” The area was desirable and the sales depicted the possibility of great rewards for the hard work I put into designing a custom home. The context of “location, location, location,” the three reliable factors of real estate, gave me (the educated Realtor) great confidence.
Well, now we all know what happened, and this time it wasn’t necessarily “corporate greed,” it was the best educated guess reflecting market sales of the time and what the location seemed to produce.
What actually happens when a house hits the market and is overpriced?
You may end up, years later, selling it for a fraction of the cost you paid to build it. I hate it when that happens. All of us are programmed to want to make a profit in real estate. Yes, if possible, let’s try to do it, however, the reality is more about timing.
Tips on Selling Your Hawaii Home
1. Real estate is all about timing—the best time to buy and the best time to sell—and it takes a lot to convince someone to take a loss. The bravest sellers out there can swallow that pill and move on. It doesn’t mean the time won’t come around again for the diligent investor, who may be facing the issue that they missed the best time to sell.
2. Most sellers should get a licensed appraisal. The seller in this market is really killed by low comps, even if they have great land value and high-end construction integrity. By and large, right now, the beautiful product they worked hard to build cannot simply be replaced for the price most of them have had to reduce their homes to.
3. Good pricing drives showings and the more exposure, the more chances a buyer will recognize the value and engage in contract. If you want to check out a once “overpriced custom house” that is now a steal (and I am not kidding), check out this property (MLS# 249232) for the always desirable “location” and now price.
As a seller’s agent, I want to get the most for the seller in this market. This is the “buyer’s” marketplace and sellers are extracting their last breaths while they tighten their proverbial belt. It is tricky though…how can you generate showings if you are not perceived as a value? It’s no activity at all that hurts. What about “missing the market?” Well, chances are if you are in this market trying to sell, you missed it (like I did), and the market is just not that predictable.
There is good news in the end for buyers; despite the high “old prices,” some sellers just have come to the Maverick decision to price the house within the top four houses most likely to sell within the next month. What a concept! We are not talking about making the most profit anymore, but instead focusing on the goal of the sale.
I am an Accredited Buyer Representative who works in the Waimea, Honokaa, Kohala and Waikoloa marketplace on the Big Island of Hawaii. I can help you sort through the inventory and help you pick the best value, or help you find the pricing that will bring buyers to your door if you are a motivated seller. Call me for an appointment.