Real estate market still good for Sellers
Wednesday - October 18, 2006
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Is now the best time to sell?
With a clearly transitioning real estate market, more property owners are asking this question. For the past five years the meteoric rise in Real Estate prices in Hawaii captivated the public, but now, as in the mainland, the Hawaii market has cooled. The Oahu market has clearly transitioned into a mostly sideways trend. Prices of homes are still at near all time highs but rising inventory levels mean Sellers have more competition and Buyers have more choices.
The saying “Buy low. Sell high.”, however cliché, is very appropriate for the current market. For Sellers, the news is still mostly positive. Real Estate continues to sell at almost unprecedented prices, but the 20% to 30% annual increases we have seen over the past few years are over. Many property owners who purchased homes or investment properties even in the last 2 years stand to gain substantially without having to make dramatic improvements to the property; however, Sellers also need to keep in mind that in certain neighborhoods on Oahu, property values may now actually be declining. From a purely financial standpoint, more now than ever, property owners who have seen substantial paper gains should consider selling.
Owners who are considering selling should be aware that realistic pricing is the critical factor in determining whether the home will sell. No longer can Sellers “push the market” by pricing their homes slightly above what comparable homes have sold for. Furthermore, inventory levels are rising and Sellers should be considering ways to set their home apart from the competition such as improving the home’s appearance or pricing the property more aggressively.
Whatever the real estate goals are, using an experienced Real Estate Agent is crucial in guiding a Seller through the complex and potentially time consuming process of selling a property. A Real Estate Agent should be able to guide the Seller through the process of preparing a home to maximize its value and will often manage the process on behalf of the Seller. An Agent will be able to advise the Seller on a realistic sales price and how best to market the property. Good Real Estate Agents are invaluable as advisors, facilitators, negotiators and advocates of their client’s real estate interests.
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