Island Lifestyle Properties

So what works and what does not work in a difficult market?

1. Don’t chase the market on the way down. A tough market is not the time to fish for higher prices, nor to ask for more than your property’s realistic value. Tough markets are the time to carefully price your property under the competition, so buyers will immediately perceive its value. Your property’s first appearance on the market is its “prime time.” It’s important to create a good impression with prospective buyers—and essential that the real estate agents in the area are enthusiastic about your property. If they believe your property overpriced, they will be dismissive about your property with their clients and your listing agent won’t attract the traffic you need. Too often, overpricing at the start leads to a spiral effect: the property goes through incremental price decreases, chasing the market down. The result? Typically the owner holds the property for an extended time, incurring additional costs, only to eventually slash prices lower than what would have originally been necessary. It is important to keep in mind that in a softening market, the competition is continually increasing and the time to beat the competition is at the beginning.

2. Do the numbers on whether it pays to “wait out the market.” Should you try to “wait out the market.” Many property owners on Maui adopt this strategy—which is fine, if they have the financial wherewithal to wait out the market. Whether this is a good or bad strategy for you depends on your unique circumstances. It seldom pencils out if you need to sell within the next two or three years. Indeed, waiting can have disastrous financial consequences over the long haul. It’s so important to perform a financial analysis that takes into account your options. Generally, unless you are prepared for a long-term hold, it is better to sell your property at a lower price now, avoid the prolonged cost of ownership, and free your equity for more productive investment.

3. Bring out the WOW factor in your property. It’s always important to present your house in the best possible light. If you have difficulty visualizing your property’s potential, get advice from the experts. It is time to bring out whatever WOW factor may be hidden in your property.

a. If your interior is dated, consider painting and staging the house with upgraded furniture, art and accessories from one of the professional staging companies.

b. Above all, remove personal items and clutter.

c. Make sure that damaged or worn areas are repaired. Throw out that worn-out carpet.

d. Perform deep cleaning, and pressure washing if necessary.

e. Don’t wait for the buyer’s home inspector to find a problem. Fix it now.

4. Capture your home with great photography. Good photography is critical to developing market appeal. Your photographer should have high-quality SLR digital equipment, including a wide-angle lens, and do outstanding work. If you know an amateur who meets those criteria, that’s fine. If not, hire a professional. Your home’s visual impression is no place to scrimp on a few dollars.

5. Make the most of your marketing. Make sure that your real estate agent will maximize your marketing exposure and can take full advantage of internet marketing strategies. If your only exposure is in the multiple-listing service and your agent’s website, you are missing potential buyers. The majority of buyers start their property search online and actively use online services throughout their search

a. List on the major search engines and sites

i. Google.com

ii. Yahoo.com

iii. OpenHouse.com

iv. Zillow.com

v. Homes.com

vi. Trulia.com

b. Consider listing on eBay. This is low cost and will generate potential buyers. You won’t be auctioning off you property to the lowest bidder.

c. Consider a narrated video clip for posting on YouTube. This is inexpensive and effective. Websites link to the YouTube site for viewing the clip.

6. Offer buyer incentives. These can really help buyers get off the fence and create enthusiasm for your property. This can create a sense of value and give sellers an edge in preserving price during negotiations with buyers. Offer to pay the buyers closing costs, offer a free year of landscape maintenance, pool maintenance or maid service, as an example. Be creative, it will set your property apart from its competition.

In summary, keep a positive attitude and remember real estate sells even in the worst of markets. If we may be of assistance in helping you sell your property please feel free to contact us.