Why isn’t your home selling?
Oahu is one of the most in demand real estate markets in the U.S. The combination of high demand and low inventory should make selling your home a breeze, right? Not exactly. The high demand causes many sellers to overprice their home and leave it on the market for extended periods of time, waiting for their dream offer to come rolling in only to end up disappointed.
Once you make the decision to sell your home, there are four main factors to focus on: marketing, location, condition and price. You have control over condition, price, and marketing, but not location (unless you live in a mobile home). Let’s focus on how to optimize your strategy in those areas.
MARKET TO AGENTS, NOT BUYERS
If you’ve been working with an effective real estate agent, you’re probably already aware of this concept. As you shape your marketing plan, your agent should be showing your home to other agents who have recently sold property in that area. Instead of focusing on one buyer at a time, every agent connects you to an extensive network of potential buyers who are already looking for property in your area. There could be somebody on Oahu looking for exactly what your home provides. The wider net your agent casts, the better chance you have at finding them.
If your home has been on the market for months without much interest, it may be time to look at your marketing plan and see whom it’s targeted to. If you’re getting a lot of attention without any offers, you may very likely need to adjust your price.
PRICING AND PERCEPTION
When it comes to pricing your home, you control your own destiny. Pricing it properly is the most important factor in selling a home. It may be tempting to price it above the market in the hopes that Oahu’s high demand will cover the difference. Locations agents have found that a much more effective strategy is pricing at or below market value. Sounds crazy, but hear this out:
It’s all about perception. Like your marketing strategy, you want to make your property look like a deal, a hot commodity, something that won’t be around for long. When agents see a deal, they’ll want their buyers to see it immediately. Multiple interested agents equal multiple interested buyers, creating competition that can start a bidding war and push your sale well above your listed price.
Conversely, if agents see an overpriced listing, they will recognize it immediately and avoid your home. Especially if the competition around you is priced at or just below market value. If agents aren’t interested, neither are their buyers.
THE CONDITION OF YOUR PROPERTY IS CONDITIONAL
Time and money are your two main concerns when deciding how to spruce up your property. Evaluate how much you’re able and willing to invest. Can you put your sale on hold for three to four months to remodel the kitchen? Can you afford it financially? Most importantly, will it increase your home’s value?
Get guidance from your agent in this situation. It’s important to have your agent assess the current market conditions and competition to show you what you’re up against. This will help you decide.
FOCUS ON WHAT YOU CAN CONTROL
There will always be forces outside of your control that may affect the market. Remember, you are collaborating with your agent, and while you should strive to set and meet your ideal price, be prepared to adjust based on the market information and expert advice they provide.
Locations agents are trained and have successful experience with these proven techniques. If you’re thinking about selling your property, visit www.locationshawaii.com to find a Locations Neighborhood Expert in your area.