Pricing Property Correctly
One of the most critical components in listing a property for sale is pricing it correctly. It is particularly important when the market begins to shift from a Seller’s market to a Buyer’s market.
Are we in a shifting market?
On Oahu, our inventory remains at about a one month supply for single-family homes and a month and a half supply for condos. That’s tight. Buyers are still vying for property. Pencils are still being sharpened. Demand and competition remain high. But, there are concerns. Concerns about the economy, the stock market, inflation, and those rising interest rates. As interest rates creep up, a correct list price is critical. The list price is like a magnet, attracting ready, willing, and able Buyers to the property.
The determination of market value is normally based on a set of assumptions, such as the location of the property, the size, and condition of the property, and the nature and condition of the market. Existing inventory, past sales, days on market, current interest rates, and the economy, are all key factors to consider when pricing a property. Ultimately, the market decides the price and the market’s opinion is truly the only opinion that counts. Listen.To.The.Market. Right now, there are a lot of unknowns and a lot of uncertainty. It’s still pretty robust, but the times may be a changin’. So, listen well and be quick to respond accordingly.
There is no “exact price” for real estate, but analyzing current market conditions and sales data can give Sellers a fair indication of value. In a shifting market, pricing at or below past comparable sales prices is wise. Get in front of the curve in order to generate interest! A well-priced property will sell faster and at the property’s highest and best price.