Having Trouble Selling your Home?
Oahu is one of the most in-demand real estate markets in the U.S. The combination of high demand and low inventory should make selling your home a breeze, right? Not always; sometimes, high demand causes sellers to overprice their home and leave it on the market for extended periods of time, waiting for their dream offer to come rolling in only to end up disappointed.
If you find your home sitting on the market too long, use some of these tips to adjust your marketing plan.
Market to agents
If you’ve been working with an effective real estate agent, you’re probably already aware of this concept. If your real estate agent's marketing has been in place, then pricing is what you’ll want to focus on. As your agent shapes the marketing plan for your home, it should include promoting your home to specific real estate agents, those who have recently sold property in that area or in that price range. Instead of focusing on one buyer at a time, every agent connects you to an extensive network of potential buyers who are already looking for property in your area. There could be somebody on Oahu looking for exactly what your home provides, the wider net your agent casts, the better chance you have at finding them.
Marketing to buyers is still your end goal. After all, they are the ones who will actually pay for your home. But, like you, they have an agent who knows exactly what they're looking for. If the agent is sold on what your home has to offer, it's much more likely their buyer will be as well.
If your home has been on the market for months without much interest, it may be time to look at your marketing plan and see whom it’s targeted to. If you’re getting a lot of attention without any offers, you may very likely need to adjust your price. When you adjust your price, that’s a good time to consider refreshing the professional photos that appear in the MLS.
Price your home competitively
When it comes to pricing your home, you control your own destiny. Pricing it properly is the most important factor in selling a home. It may be tempting to price it above the market in the hopes that Oahu’s high demand will cover the difference. Locations agents have found that a much more effective strategy is pricing at or below market value. Sounds crazy, but hear us out.
It’s all about perception. Like your marketing strategy above, you want to make your property look like a deal, a hot commodity, something that won’t be around for long. When agents see a deal, they’ll want their buyers to see it immediately who will often make an offer just as quickly. Multiple interested agents usually results in multiple interested buyers, which can create competition which can lead to a bidding war, ultimately pushing your sales price well above your listed price.
Conversely, if agents see an overpriced listing, they will recognize it immediately and avoid your home, especially if the competition around you is priced at or just below market value. If agents aren’t interested, neither are their buyers.
Analyze before upgrading
Time and money are your two main concerns when deciding how to spruce up your property. Evaluate how much of both you’re able and willing to invest. Can you put your sale on hold for 3-4 months to remodel the kitchen? Can you afford it financially? Most importantly, will it increase your home’s value?
Get guidance from your agent in this situation. It’s important to have your agent assess the current market conditions and competition to show you what you’re up against, which will aid in your decision. If they’re really good, they will provide you with a multitude of options at all price levels, then let you make the decision. Look into the local home improvement stores, as many of them offer 0% financing for 6 to 12 months, as long as you pay it off in full before the time is up. This can help float some of your costs. But remember, if you overprice it, it still won’t sell.
Focus on what you can control
There will always be forces outside of your control that may affect the market. Remember, you are collaborating with your agent, and while you should strive to set and meet your ideal price, be prepared to adjust based on the market. Your agent should educate you extensively on your neighborhood’s recent sales, what the competition offers, and a price range they think is best. Ask your Locations agent about receiving the email alerts for your neighborhood and price range, this will enable you to keep your finger on the pulse of your local real estate market. You’ll be able to see upward and downward trends as they occur, giving you information that can be invaluable.