When you are ready to sell your Kailua home, whether you use a real estate agent or not, you need to have a market analysis conducted in order to price it correctly. You can try and do one yourself with online information, however, it probably won't be very accurate so it is best to utilize the services of a professional.
The most important thing to remember about a market analysis is that you are only being given the information as it is available to the agent. When Kailua sellers put their house on the market they typically have a price in mind before they talk to a real estate agent. They may have an amount that they want to have in order for the sale to be worthwhile for them. And they may even have to clear a certain amount in order to get into their new home. Unfortunately, in a market analysis none of this matters.
When an agent compiles a market analysis they are using the information provided on their mls database. The first step is to look at the comparable homes that have sold in the Kailua neighborhood with comparable being the operative word. If the homes that have sold do not closely resemble your home then adjustments have to be made. For instance, if a comparable home has an additional bedroom that yours doesn't then you have to deduct the value of a bedroom.
An important point with sold homes is the sold price at closing- not the asking price. This may differ by tens of thousands of dollars. What someone is asking is irrelevant: what it sells for is what is important. Neighbors may quote prices, what they paid, what it appraised for, etc., but, again, that is not where the information will come from.
If there are foreclosures in the neighborhood within the last six months they will have to be considered as comparables. This will probably bring down the value, but this is the exact same information that the appraiser will use when they appraise it for the lender. There is no way around this.
Another common misconception is how much current Kailua homes for sale are listed for. These homes have not sold yet so their information is irrelevant. Just because someone may be asking more for their home doesn't mean it is worth that much.
For information on how much your home is worth, give us a call at 888.450.4140 or visit our Kailua real estate website.