Hawaii Randy's Real Estate Opinions: April 2007

Your Home is Over Priced and Under Marketed

                                                  Camera Phone Shot     Home

                                                                          Why do so many listing have camera phone shots? 

 

It is not rocket science, but there is a science to selling homes.

Yesterday I looked up two different properties for two different potential clients; one a potential listing and one a potential sale.  In the end I came up with the similar conclusions on both properties.

The 1st Property:

It is an extremely large tri-level townhouse with a 2-car garage that they bought when they moved to Hawaii a few years ago.  It was on the market for a long period of time and had many showings, but no offers.  The property was in above average condition.  I said I would not be able to follow up with them as long as it was listed with another agent.  The immediate response was no problem we have pulled it off the market.

After doing a little investigation I found a few issues:

  • It had a ridiculously high maintenance fee.  I happen to be familiar with the property and was aware of their issues.  It doesn't end there; the maintenance fees are scheduled to increase 6% or 7% for each of the next 7 years, not including any unexpected expenses or assessments.  They had extremely poor management in the past, including a large some of money missing.
  • The property was leasehold.  You buy the improvements and lease the land.  This particular lease had a few big issues.  Number one it was with Kamehameha Schools; who wants out of the residential leasing business.  They offered the leases for sale to the home owners about the time they bought the property.  Since then the price has doubled and the lessor is planning to sell off their leases to a third party.  The lease is getting limited on time, which will effect the ability to get 30 year financing.  The lease also comes up for renegotiation next year.  These are all things that scare buyers and devalue your property.
  • Now the one you have been waiting for: THE PRICE.  The property was over priced.  The fact that they had a huge number of showings and no offers was a clue.  The comps were the final decider on this issue.

The plan:  

Start the process of buying the land to make it fee simple and offer it for sale in fee.  That will remove a huge issue.

Put it back on the market with appropriate pricing and increase the marketing to include quality pictures on the listing (I forgot to mention the old listing had camera phone shots).

Point out the properties unique features (also missing from the last listing).

Advertise on the internet.  There are not many properties of this size and quality on Oahu.  People relocating from many parts of the mainland are used to seeing larger homes with upgrades.

The 2nd Property:

My client is a potential buyer.  A listing in the neighborhood he was watching had a big price reduction and appeared to be severely under priced.  After a quick investigation I found that it was also leasehold and had a less than desirable lease on it.  After checking the comps and reviewing the numbers, I came to the conclusion it was now priced correct.  The property also had an issue with difficulty making showing appointments and terrible pictures.  They have a limited service Realtor, putting the owner on the hot seat.

When looking at why your home doesn't sell it can usually be summed up with one word: marketing.  Price is part of marketing, but not the only part.

It may not be rocket science, but there is a science to marketing a property. 

 

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Randy L. Prothero, REALTOR®

Broker-in-Charge, ABR, AHWD, CRB, CRS, e-PRO, GRI, MRP, SFR

eXp Realty

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.  His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

Comment balloon 17 commentsRandy Prothero • April 08 2007 03:19PM
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