These are the four price categories that most homes listed in Hawaii can be sorted into:
1. “Are you kidding me?” Occasionally, you’ll find homes that are probably valued at somewhere around $700,000, but the owner insists on trying to sell it for $1 million or more—they have an unrealistic idea of what the value of their home is. As a buyer, you’ll just have to understand that unless we can change the seller’s expectations, it’s highly unlikely that they’re going to be selling that home anytime soon. I’d say around 5% of properties fall into this category.
2. “Not so bad.” Encompassing around 60% of all homes, houses in this category are priced 3% to 10% over their market values. Two types of sellers operate in this category: The first type are sellers who sit above the market just a little bit because they want to leave a little bit of room for negotiation; the second type consists of sellers who feel that their home is special and warrants the above-market price, perhaps because of certain renovations they’ve made.
3. “Let’s make a deal.” These properties tend to sell in about 30 days or less here on Oahu and in half of that for the past six years or so, given our seller’s market. They’re listed at or around list price.
4. “We need to move yesterday.” In this category, sellers are motivated to sell quickly; these properties sell in about seven days, and often at 5% to 10% below market value. Sometimes these homes will inspire bidding wars, but if you can get your offer in first, you can often get the home below market price.
As buyers, you need to keep in mind that the seller is the person who sets the initial price for the sale of the home—however, you get to set the final price.
If you have any questions about home prices in Hawaii or are looking to buy or sell a home, feel free to reach out to me. I’d be happy to help.