The Power of Pricing it Right – A Quick Sale On West Maui at Maui Lani Terraces
I had the pleasure of helping a client and good friend make some money in the Maui real estate market last month. Who doesn’t want to do that?!?!
The ingredients were all there for a successful outcome. Purchase a foreclosure (REO) in a hot complex, live in it for awhile and fix it up, sell. Lather, rinse, repeat. It’s just that simple – sometimes…
In a market that has been steadily increasing since 2011 or so, it was a great move. The property came on the market well represented by myself and Hawaii Life. Professional photos and copyright, massive online exposure, and design driven direct marketing all played a part in getting 5 offers within the first week on the MLS. I am pleased to say this Seller opted for the cash offer $5k over list price. Everyone likes a quick close.
Maui Lani Terraces G-106 (MLS# 367005) was listed at $275k, and sold for $280k
What Was the Selling Strategy?
Our success was in part because the Seller understood the importance of pricing a property correctly, ie- at market value. Market value can be defined as the price at which a Buyer is willing to pay and a Seller willing to accept on any particular property. It’s not a static number and certainly can be somewhat subjective.
There are a myriad of ways to approach a selling strategy. Most agents cringe (well, at least I do) at the old – “price it high and let ’em work us down a little” strategy. Everyone wants to hit a home run, and if that is the Seller’s desire, we go with it. That strategy can lead to long days on market (DOM) and lots of little price reductions until we get closer to what the real market value may be – missing our opportunity to make a great first impression. Buyers often want to know: “why has this property been on the market so long?” And, “what is wrong with it?”
Nothing wrong with this one! After 5 offers, we went to contract after just 5 DOM.
Granted, it is not always easy to narrow in on what market value truly may be. Unique properties, unique locations, lack of comparable sales, varying property conditions, the list goes on and on. In the case of this property at Maui Lani Terraces, we knew that we had a hot complex with lots of interest. Coupled with being in a market segment that is also in demand (under $300k, 2BR condos on West Maui), we had a winner.
Owen Langer, R(B)