Even in a market like Hawaii, homes fail to sell every day. Here’s the main reason why.
Why don’t homes sell in Hawaii? The No. 1 reason is price. Here’s a common misconception that people have. They think if a Realtor has exceptional marketing, the home will sell no matter what price they list it at.
We know from experience that's not true. There’s a difference between price and value. The most important value is the value that the buyer places on the home. There are other values, including the appraised value and the tax value, but the only thing that really matters is what the buyer is willing to pay for your home.
Certain things happen when we price a home too high. They tend to sit on the market much longer, have sparsely attended open houses, and not very many showings at all.
"You may end up leaving money on the table by underpricing."
When we price a home too low, it can create an unintended auction effect. Yes, the price will get bid up, but you may end up leaving money on the table as a result, depending on where the initial asking price is set. We want to price the home just right so that it sells quickly and for the most money possible.
How do we know if we’ve priced a home correctly? There’s only one telltale sign; an offer! If there are no offers, none of the other things matter besides price. That’s just one reason why homes don’t sell in Hawaii.
If you have any questions for us in the meantime or you’re looking to buy or sell a home in the near future, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.