Who Determines Hawaii Kai Real Estate Values: Buyers or Sellers?

Real Estate Agent with Valcore Realty Group

When sitting down with one of our Hawaii Kai sellers and discussing the sale of their home, inevitability we will discuss price. "How much are you going to list my home for? " is what the seller will ask. Now this is often times a double edged sword question because if you spit out a number that is much lower than their expectations the seller will say "But so and so said they can get much more for my property". If you spit out a number that is too high, they will love you now and hate you later when you don't deliver.

What we prefer to do with our clients is educate them on what market conditions are and what similar properties have sold for. Once we have done that, we offer a suggested listing price range rather than just a single number. We then ask the seller what he or she had in mind as a starting price for their Hawaii Kai home. If their number is lower than our range, then we are in good shape because not only does he or she have a realistic expectation of the sale of their home but often times we can deliver a higher price than what they thought they were going to receive. Most times, however, when asked that question the seller will come back with a number that is higher than the range we suggested. When that happens, we ask a follow up question: Who determines the market value of your home? Do you or does the buyer?

You see, it really doesn't matter what a seller wants for his or her property but rather what a buyer is willing to pay. Buyers ALWAYS ......

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Comments (3)

Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

You tell them the truth. You explain this home is pretty special to you, raised a family there, worked your tail off in that garden, spent beaucoup for the kitchen and have a box full of receipts. But. Other homes or whatever kind of real estate you are looking at under the microscope, jewelers loop are selling for this. With this, this and this examples of sales. These examples of comparable listings. So unless we add in some whale of a deal owner financing terms or discover oil or gold out back by the dog house, this is what the market numbers show the value is. The exception I have found is Maine waterfront where folks do tend to buy with their heart not their head. And no bank appraiser, they have been looking for a while, inherited some cash and the short supply is a perfect time for multiple higher offers than the listings price.

Mar 10, 2011 11:29 AM
Don Barrett
Integrity Real Estate Services - Idabel, OK

Always. Always. Always.  But sellers forget that or choose to ignore it.  Sellers want to believe that they set the market.

Mar 10, 2011 11:56 AM
Ryan Tongg
Valcore Realty Group - Honolulu, HI

I think the best way to sum it up is "If people aren't buying then there is no market. If people are buying then guess what? You have a market!"

Its challenging at times because sellers wrestle with the difference between sentimental value and actual market value. It is so blurred at times that they can't distinguish the difference. That is where it is our job to come in and educate :)

Mar 10, 2011 12:28 PM