Homes are flying off the market in today's real estate environment, and sellers are cashing in historically high checks after the sale. If you are planning on taking advantage of the extra cash that will make it into your pocket, now is the time to do it.
In fact, recent reports show that Hawaii's home values are up 22.1% compared to the same time last year. In June of 2021, the market overview was averaged at about $738,000. As of June 2022, that value has spiked to an incredible $901,000. Of course, Hawaii beachfront homes for sale are going for significantly more. The key is to price your home just right to encourage buyers to make the offer of a lifetime to win the bidding for your oceanfront home.
This momentum won't last forever, however. To help you make the most out of your sale, here are your top tips from Sharon Brown Real Estate for selling Alii Heights homes and Kona Bay Estates properties for their maximum values.
1. Compare Your Beachfront Home to Surrounding Beachfront Homes
It's not easy to gauge the value of your luxury home just by looking at it. That's why many home sellers who put their homes up as 'For Sale By Owner' either sit longer or earn much less than their potential. Doing your research on similar properties in your area — preferably with an agent that is familiar with the process — that have recently sold, gone up for sale, and are pending can be extremely helpful:
-
What prices aren't attracting buyers? What prices are?
-
How does your home compare to square footage and features?
While conducting your research and evaluating the sale prices of neighboring beachfront properties, focus only on homes within 10% of the square footage of your home. Too much or too little won't give you as much valuable insight into how to accurately price your estate. On the other hand, homes that fall in line with that percentage can be the encouragement you need to go higher (or even, in some cases, go lower if expectations are too high).
While you're at it, talk to your real estate agent about the value of conducting a Comparative Market Analysis (CMA) and hiring an independent appraiser. They will be able to help you pinpoint your home's market value and ensure it's priced perfectly.
2. Not All Renovations Are Created Equally
There's a common misconception that you'll get more out of your beachfront property when you remodel. In fact, many sellers think that by making substantial updates and renovations right before selling, they will get more back from the home. The problem is that many big updates can cost you a lot while only valuing a quarter (if you're lucky) of what you put into it when you sell.
Instead, consider simple home improvements with higher return-on-investments, such as:
-
A fresh coat of paint
-
Landscaping
-
Modernize fixtures, lights, and hardware
-
Make small repairs
-
Update flooring
This could lead you to price your home for more than it's worth to try to get that money back. Not only will this cost you the benefits of a bidding war since you could lose out on most of the offers you would've gotten initially, but you also risk your home sitting on the market too long and decreasing in value as a result.
3. The Longer Your Home Sits, The More The Price Will Drop
It is much easier to sell a home in today's real estate market than in any other. So, if you notice homes are staying on the market with no real traction, it's a good sign that the price isn't right and the seller isn't willing to budge. You may think that the right buyer will come along eventually, particularly one that sees the value of overpaying for your home.
But that's more risk than it's worth.
This is because you risk the value of your home dropping the longer it sits on the market. Buyers will become more skeptical of your home, wondering why it didn't sell fast like the others. Will it cost me more than it's worth? Is it priced too high? Before you know it, they walk away without even considering it or lowball an offer.
According to The Nest, your best chance of selling your home at your list price or higher is within ten days. From there, you can lose up to 5% after 30 days, 10% after 90 days, and up to 15% after 120 days.
4. Home Estimates Online Are a Starting Point — Not a 'Know All'
Online listing sites like Realtor.com and Zillow offer home sellers and buyers a little insight into the estimated value of a home. However, it would be a huge mistake for either side to bank on that number being entirely accurate. More often than not, the estimated price is higher or lower than the actual worth of the home listing.
For this reason, we recommend using it as a starting point, not as a 'know-all' guide to pricing your home.
The truth of the matter is that estimates online don't incorporate homeowner updates/improvements that add value and can easily make mistakes on property taxes and other data. After all, it is computer-generated. Speaking with your real estate agent, you will be better able to compare the right price for your home versus online estimates.
5. Make Sure the Price is Right (Don't Purposely Over-Price)
Many sellers want to throw their homes on the market for a ridiculously high price because why not? They figure, what's the worse that can happen? Well, the worst thing that can happen with that strategy is you lose out on a lot of money that you would have otherwise gotten from the sale. Sure, it would be nice if a buyer came along, unaware of the actual value of your home, and made a purchase.
But that's usually not the case.
What actually happens is buyers see that you're way over-priced, so they wait you out until your home depreciates in value due to sitting on the market too long. When this happens, they jump in as the only buyer with a significantly lower offer than you could've gotten off a more fairly-priced listing. Make sure the price is right. You could even discuss going a little under the actual value of your home to entice more people to participate in a bidding war that could take your sale price much higher than the listing price.
6. Oceanfront Houses For Sale in Hawaii Are Rare — Take Advantage And Evoke a Bidding War
It is important to note your home's location and incredible features — particularly oceanfront views. Hawaii is filled with beautiful beachfront views that people all over the world dream of owning. For this reason, there is a much higher demand for homes like this than there are homes like this for sale.
This means the ball is in your court.
Consider how far you can go with the price to get the most of your beachfront property without going too far. An experienced real estate agent in Hawaii could make all the difference since they'll have the knowledge of what homes like yours sell for in today's environment. They'll also know what buyers will do — whether that be bidding outrageously higher or adding in extra perks for the seller — and how you can manipulate those motives to your best advantage.
7. Sell Your Home With a Real Estate Agent — Sharon Brown Real Estate
It may be tempting to go it alone and save on some fees and commissions, but more often than not, sellers miss out on more than they'd save. A real estate agent represents you, the seller, and negotiates on your behalf,handles all the paperwork, ensuring you're getting the right price for your beachfront home in Hawaii. And if you're not, they know what next steps you should take.
According to the National Association of Realtors (NAR), For Sale By Owner (FSBO) homes sold on average for $260,000 compared to homes assisted by an agent that earned $318,000. Luxury home prices saw an even higher disadvantage as the NAR report also found that 14% of the most challenging tasks associated with FSBO were 'Getting the right price.'
Maximize your home selling potential by enlisting Sharon Brown. Not only can you count on us to get the price you deserve from your Hawaii beachfront home, but you can rest assured that every step of the way will be as easy and smooth as possible for you. Reach out to learn more about your home's accurate pricing potential!
