Is It Time to Sell Your Kona Kohala Vacation Home?

Well, your timing could be better. The good news is, it’s no longer 2009, and the market is only looking up from there.

When you call me for a complimentary consultation, the first question I will ask is, do you have to sell right now?  Can you rent the home and wait for prices to rise?  However, if you are calling me now, chances are you need to sell now.

Yes it is a good idea to interview a couple of brokers.  Don’t go with the first person Uncle suggests until you speak with at least one other practitioner.  This suggestion is always mentioned at my marketing presentations.  Be sure to notice all the letters or designations behind a broker’s name.  Those speak volumes about the continuing education a broker has taken.  Some designations, like CRS, RSPS, and CLHMS can each take years to earn.

Certified Residential Specialist (CRS) is the most prestigious.  It requires the most time in class hours and the most closed transactions.  The CRS professional network is the most popular and successful in the country. The Resort and Second Home Property Specialist (RSPS) is one of the newest designations.  In response to baby boomers acquiring vacation homes, those of us who work specifically with second homeowners are delighted to have an ultra specialized group of professionals to work with worldwide.  The vacation home statistics and the body of information available for members of this specialty is critical to the success of our clients.  The Certified Luxury Home Marketing Specialist designation (CLHMS) is, as the name suggests, for those of us who have the opportunity to work with high net worth individuals.  Requirements include selling a minimum number  of  properties priced in the top 10% of the local market.  The benefit for members is the

On to the marketing plan.  The plan needs to be provided in writing.  A good marketing plan will be internet advertising heavy, and probably print advertising light.  There may be a section of optional marketing activities.  These would be marketing events which the broker would like to do given an unlimited budget.

Here are a few home selling tips for a buyer’s market:
•  It’s a beauty contest and a price war.  The most beautiful property, priced the lowest, will sell.

Selling a home can be a complex and stressful process. Your broker will help you effectively prepare, position, and price the home; assist with buyer negotiations; execute a detailed transaction process; and help you work through unexpected developments.
Your broker will know the pricing strategy, buyer preferences and marketing approaches specific to your home’s market segment.
Your broker will have invaluable insights into what sells a home. After visiting hundreds of homes with buyers each year, the broker has a unique understanding of what home buyers value in particular neighborhoods.

When preparing a home for sale homeowners need to rely on a broker with the specific market segment expertise and experience to help you protect your investment.

Most people know that using a broker is a smart decision. “For sale by owner” closed transactions, where the seller does not know the buyer, remains historically low at six percent.

Sellers must prepare their home for sale.  Enhancing curb appeal, showcasing remodeled kitchens and bathrooms, and ensuring the home is well maintained is critical.

“Home staging” can help sell a home more quickly and for more money.  Look for this in the marketing plan.

According to the National Association of Realtors’ 2009 Cost vs Value Report, some of the least expensive home improvement projects are also the smallest. Small exterior projects continue to remain the most profitable at resale.  For example:
•  Steel door and upscale fiber-cement siding replacement.
Wood deck additions return more than 80 percent of remodeling costs at resale.
A minor kitchen remodel is estimated to return 78.3 percent on resale.

Regarding Buyers’ Feature Preferences:
•  Ninety percent of recent home buyers thought energy efficiency was a very important consideration when searching for a home.
The most desired home features, are central air conditioning (74 percent of buyers thought this was “very important”), a garage (57 percent), a walk-in closet in the master bedroom (53 percent), a backyard/play area (50 percent), cable/satellite TV ready (46 percent), and high-speed Internet access (40 percent).

So you have a beauty and it’s still not selling?
•  Reduce the price significantly.  Most vacation home buyers in our market do not like to make really low offers. If your home is in the wrong price band no offers will be made.  If you do receive a low offer, do not be offended.  The first offer is typically the best.
Offer to pay buyer points. One point is one percent of the loan amount, charged as prepaid interest. Sellers who pay these points can offer the buyer a lower mortgage payment.
Pay closing costs. Closing costs generally add up to somewhere between two and seven percent of the loan value, according to Freddie Mac. Buyers who are stretching to make a down payment will be attracted by this type of help.
Have the home pre-inspected and make all recommended repairs.  This is an excellent marketing strategy.
If the market is stable (within 3% or so), buy an appraisal.
Buy a home warranty. A residential service contract is some insurance that the buyer won’t encounter high repair costs in the first few years of home ownership.
Pay homeowner association fees, pool or yard maintenance for a specific number of months. Paying these kinds of predictable maintenance costs at the beginning can be a nice incentive for buyers.

With our team of professionals behind you, the entire process is simpler, clearer, smoother and more efficient.  We very much look forward to working with you in the sale of your home