4 Reasons Why It’s A Great Time To Sell Your Home
By Lisa Scontras
How is it that some sellers receive four or five offers within the first four or five days of listing their home while other listings languish for months on the market with no offers and very few showings?
In a word it’s about being competitive, according to Russell Nishimoto, Realtor and partner at Prudential Locations.
“It’s not that the entire market is doing well,” says Nishimoto. “Some neighborhoods are slower – a big part of success is really neighborhood specific.”
But if there actually is a method to sell your home quickly and for top dollar, it is to learn what works in your market, and take advantage of good timing. And right now, the timing couldn’t be better. Here’s why:
1. Summertime is home-selling season. Traditionally, a greater number of buyers are choosing to move this time of year – 30 percent of the sales for the year historically will take place in the next three months. And, it is understandable that sale-to-list-price ratios are higher simply because there are more buyers out there looking.
“There is a lot of movement among buyers this time of year,” Nishimoto says. “With activity higher, there are more potential buyers out there looking. That means yes, it is logical to say you’ll get a better price for your property.”
2. The return of relatively low-interest rates is providing an incentive to prospective buyers.
Low-interest rates are a strong motivator. When interest rates began ticking up, there was a noticeable increase in activity among buyers who wanted to get in before rates rose too much higher.
3. The lack of inventory in specific neighborhoods is exerting upward pressure on prices. Currently a surprising 20 percent of homes are selling above the asking price.
Perhaps the biggest market influence motivating sellers right now is low inventory. Months of remaining inventory measures how long the active listings will last at the current rate of sales.
“If there are six months or less of inventory remaining, then it’s a great time to list,” advises Nishimoto. “We’re always struggling to find inventory in East Oahu, Niu Valley, Aina Haina, and Kaimuki. Mililani also has low inventory, as do parts of Ewa Beach, particularly Ocean Pointe.”
4. There is a competitiveness among buyers. Especially in areas where inventory is low, more buyers are competing for listings that stand out. Properties that offer the right location at the right price are the ones that feed a buyer’s needs. Simply put, buyers are attracted to value, and your Realtor will help you to accentuate that value.
Case in point is a home that has a smaller-than-normal lot size – much smaller than the other homes in the neighborhood – and yet recently sold for more than the asking price. How did they do it? Nothing stirs up buyer interest more than value.
“We know what works,” says Nishimoto. “And even in a neighborhood perceived to be doing well, you don’t want to overlook the fundamentals like updating the existing flooring, a fresh coat of paint, and removing the clutter.”
But to be truly competitive, it takes more than just being in the right neighborhood or properly staging your home. Creating the right amount of buzz is part of the marketing plan, and could include offering a property that is perceived as undervalued.
“Now as prospective buyers are reviewing inventory, they come across yours and say, ‘I’m not sure, but this property seems like it may be under-priced,” he says. “The number of interested buyers instantly increases, generating multiple offers and the end result is a sale above asking price.”
Pricing is how you become competitive.
“We know right away when we hit the market if we’re competitive by the number of showing requests,” Nishimoto adds. “Once you expose the property to the greatest number of potential buyers, the market will tell you what the property is worth by the offers you receive. The marketplace always kicks in and takes you to what the market is willing to bear.”
There’s hope for every seller. You can have a sub-standard lot size and sell for more than your list price. And conversely, you can be situated in one of the most desirable neighborhoods but if you’re overpriced, no matter how low the inventory, market