5 Common Misconceptions on Hawaii Island Real Estate
Growing markets, technological change, evolving sales tactics…you may be hesitant to begin to buy or sell Hawaii Island real estate as the field is in constant evolution. The real estate expertise of the past is, in many ways, obsolete. Furthermore, several seemingly logical assumptions concerning real estate tactics have been statistically debunked in recent years. How, then, does one navigate the arena of Hawaii Island real estate? Below we have listed five misconceptions on Hawaii Island Real Estate and revealed truths that will assist you in buying or selling a property.
Misconception #1: Hawaii Island Real Estate Must Show to Sell
It may seem reasonable to assume that a property is more likely to sell to a buyer that has actually viewed the house. However, that is rarely the case. Real estate agents often encourage their clients to have open houses merely to expand their own clientele. Though an open house wont necessarily hurt your chances of selling your Hawaii Island real estate, it might not be worth the effort. If you do choose to host an open house, it’s not crucial to schedule it for a weekend. Weekend open houses may attract more viewers, but often those viewers are simply voyeurs, home decorators, or individuals seeking real estate agents. If you want to attract serious buyers, it may be wise to schedule your open house during the week.
Misconception #2: Your List Price Should Exceed Your Expected Price
Sellers tend to believe that, if they list a higher price than they wish to receive, they are more likely to achieve their desired compensation. However, because homebuyers tend to view only homes listed at or below market value, a higher price may actually result in a lower profit. A house listed above market value will sit on the market for longer, deterring prospective homebuyers. The housing market has been steadily expanding in Kona. Therefore, it may actually be beneficial to list a home slightly below market value. A low-priced house is likely to attract multiple buyers willing to make competitive offers.
A note of caution: a seller with multiple offers should think twice before making a high counteroffer for all prospective buyers. A counteroffer that is too high is likely to alienate buyers, backfiring on the seller and narrowing competition.
Homebuyers should be wary of doing the opposite and providing an unrealistically low offer. Sellers want to work with serious homebuyers that are willing to negotiate fairly. If your offer is too low, a seller is unlikely to view you as a viable prospect. Sellers may write you off as incapable of fair negotiation and may not even provide a counter offer.
Misconception #3: Selling Independently Will Save You Money
The expansion of the housing market has generated an increase in the value of Hawaii Island Real Estate. However, high value sales make for high commissions for real estate agents. Many individuals believe that selling their homes independently is a good way to cut costs.
Firstly, it is unwise for first time home sellers to sell independently. Without an intricate understanding of home listing, marketing, contract negotiation, and inspection, a novice home seller is likely to encounter stress and financial loss. Secondly, buyers tend to expect independent home sellers to offer significant discounts. Working without a real estate agent or investment company will therefore typically reduce your net gain from a sale.
If you want to cut the cost of an agent’s commission and avoid the headache of the home selling process, your best option may be to sell to a real estate investment company life Craft Realty. Real estate investment companies offer fair and fast sales. Working with a real estate investment company is a particularly good option for those facing foreclosure on their Hawaii Island real estate.
Misconception #4: You Should Renovate and Remodel Before Selling
Buyers of Hawaii Island Real Estate, especially in Kona, are often retirees and/or upper-class individuals seeking comfort and luxury. Sellers thus tend to assume that renovating kitchens and bathrooms before selling will make their homes more attractive to Hawaii Island real estate clientele. However, the increase in market value is unlikely to offset the cost and stress of renovating. A major remodel may not meet your prospective buyer’s stylistic preferences, rendering renovations for aesthetic purposes largely pointless.
Even functional renovations are likely to result in financial losses. Fixing the heating, air conditioning, roof, or appliances may help your home to sell more quickly. However, you are unlikely to reap any substantial returns on your investments. In fact, most renovations actually generate a loss at a value of approximately 30% of repair costs.
Misconception #5: Preparing for Home Sale is Unnecessary
While renovations and remodeling may not be your best options, there are still several preparatory steps a home seller should make before listing their property. Most buyers are looking to purchase Hawaii Island real estate in move-in condition. It is therefore important to implement proper staging techniques and make minor functional and aesthetic improvements. General cleaning is crucial, as filth and clutter will guise a property’s best features. Finally, sellers should conduct home inspections prior to listing their property. A home that is not inspected until a buyer has been identified might wreak havoc at the negotiation table.