What should I sell my home or condo for? How much should I offer?

Realtors are constantly asked about the price/value of a home or condo. Most times price is driven by the Current Market Trend, Location, Neighborhood, Age, Condition, and any Improvements Made. Realtors use the most recent comparable properties “Comps” to come up with a range of values for clients.

Although the items listed above are important to determining price they are not the only factors. Below are some things to think about when thinking about purchasing or selling a home that also affect price. Many times Time is a key factor.

  1. As a buyer, a property may be worth more to you than someone else.
    1. Have you lost out on multiple properties in the past? Are you working with low down payment? It may be worth a little more to you to get into a property now and save time during a long home search in the future. The faster you find a property the longer your property can appreciate before your next real estate purchase. Time = Money
    2. Are you having twins and need extra space? If this home is hard to find and fits your needs it might be worth more to you than the next buyer.
    3. Is this home move-in ready? To a not so handy person a move-in ready property might have added value.
    4. Will this home be the home you retire in? The lifestyle a home affords gives added value to a home.
    5. Is this home close to work? Time = Money and commute time is no different
    6. Is this home in a great school district? It might be worth more to a family than a single person
  2. As a seller, time plays a part in price. Once again Time = money
    1. Do you want to list your property on the high side? This option may mean it takes longer for your property to sell. If you price too high, then you might need to consider a price reduction a few weeks after listing. The longer a property sits the less “buzz” there is for marketing the property.
    2. Do you want to sell your property fast? Listing below the market should generate multiple offers and offers which can close quickly and timely. You may leave some money on the table though if you price too low and there is less of a bidding war than expected.
    3. What is the right number? The right number will generate multiple offers in a reasonable period of time. Once again this is subjective to what the owner feels is reasonable.
  3. Differences in Price
    1. Preference from person to person may differ greatly and there are always 2 ways to looking at features of a home.
    • Diamond Head view = direct morning sun
    • Ocean view = direct afternoon sun
    • High floor = great view & long elevator rides
    • Low floor = no view & stairway access
    • Single story home (convenience) vs 2-story home (space)
    • Old construction (character) vs New Construction (modern)
    • Pool = positive for teenage kids or negative for toddlers
    • The list goes on ……….

Think about these items the next time you're pricing out a property. Also remember the old cliche that holds true in Hawaii - "You'd rather have the worst home in a great neighborhood, than the best home in the worst neighborhood"

Hawaii Starts Here | Joe Castaneda (RA)

Joe is realtor-associate with Better Homes and Gardens Real Estate Advantage Realty. He majored in finance and has experience as a former mortgage loan originator. He now uses his finance, mortgage, and real estate knowledge to help home buyers and sellers navigate the real estate trasaction. Contact Joe by phone or email at (808) 351-8394 or JoeC@BetterHawaii.com