The Scarcity Principle in Maui Real Estate
Take one look at that kitchen, and you can see why this house garnered multiple offers after being on the market for only one day. It’s another great example of the scarcity principle in economics. Essentially when there is very little of something available to be purchased, you will drive the price up. This house was so well preserved, you might have thought it had been cryogenically frozen sometime in the late 1950s. So what do you do as a buyer if you feel that you will be facing stiff competition from other buyers? Read on!
Top Strategies for Winning the Proverbial “Bidding War”
When properties that are this rare hit the market at attractive pricing, there will inevitably be many buyers looking to submit an offer. In this case, I represented the buyer and through a combination of the strategies below, we were able to secure this property successfully. Here are my top strategies for winning a multiple offer situation:
Be Financially Prepared
If you are a cash buyer, great. If you need financing, be sure you know what you can afford and make sure you are pre-qualified with a local lender so that you can submit supporting evidence with your offer.
Know The Market
Know the values and be prepared to submit an offer higher than the asking price. Work with a realtor who knows the market and who can deliver meaningful market data. Take a really close look at all the comps and develop a sense of value before submitting your offer.
Know What You Want
It sounds obvious, but you must know the kinds of houses that you want. If you are not sure about the property and or not excited about the property, it will be hard to convey any sense of conviction to the seller on your commitment to carry through.
Work with a Realtor Who is Experienced & Well-Liked
There is a misconception about effective negotiating that you have to be an A-hole to make things work. Quite the opposite — successful transactions are beneficial for buyer and seller. The old adage, “You catch more flies with honey,” applies to multiple offer situations as well. If a listing agent receives two offers that are essentially the same, and one of the buyers is represented by a competent, experienced Realtor and one by an aggressive, unpleasant Realtor, guess which offer will likely be accepted? A good Realtor understands that any negotiating efforts have to understand what sellers want and what buyers want. Sometimes there are non-financial benefits that are easy to add to a deal to lubricate it.
Frigidaire French Door Oven Steals the Show
Yes, it works. Although it features technology that confounds millennial home inspectors. The home inspection report claimed that the oven was not operable. But how could that be? So beautifully maintained, so clean, so untouched. Something’s awry. Turns out, after a quick fiddle with the timer on the clock, I discovered that you could program this oven to start cooking at a certain time. The timer system had been set, so the oven appeared not to get hot when turned on. Bingo! It works perfectly. It came then as no surprise that in a house this well maintained, there were immaculate original manuals from the appliances included in the sale. Take a look at the pictures below!
If you would like excellent representation for the purchase of vintage plantation houses on Maui, or any other property, don’t hesitate to reach out!