By Walt Harvey (R), ABR, CIPS, CRP, CRS, GRI, QSC, SRES, e-PRO, RSPS, TRC
If you need to sell a home in this sluggish real estate market, consider this strategy: Price low to sell high.
In the brisk market of a year ago, you could list your home above the recent sales of similar homes in your neighborhood and probably get your price. You had more buyers seeking homes than there were homes available. Multiple offers were common and the time to sell a home, referred to as days on market, was measured in days and sometimes hours.
Then the market changed. Prices continued to rise but the number of sales declined and the number of available homes increased. Days on market also increased to weeks or months as buyers had more to choose from and more time to make a decision.
Buyers are still out there. We know because we see them when they visit our Open Houses. They are looking at all the homes available and don’t seem to have a sense of urgency. Some are simply waiting to see if and how far prices will decline. What’s a seller to do?
Many sellers feel that they have to price their homes above what they want to leave room for negotiation. The problem with that approach is that they receive no offers to negotiate. Pricing your home under the recent sales and well under any competing homes can generate lots of buyer interest and excitement and when managed properly, this strategy can yield multiple offers and result in a sale above asking price. Price low to sell high.
Walt Harvey is a real estate broker with East Oahu Realty and works with his wife Arla. They specialize in residential, commercial and investment real estate and can be reached on their website: www.coastalhawaii.com. Have a real estate question? E-mail us at walt@coastalhawaii.com or call 375-8959.