I think we can all agree, 2021 was a whirlwind. The real estate market is still setting records and it’s the Buyers who are driving the market up with their willingness to pay more for the properties they want. The trends that started in late spring 2020, look to be continuing right into 2022. They are:
- Sellers have realized the opportunity to sell at a profit is still here. Some who had planned to wait, have decided this is the time, and not a moment too soon.
- Buyers, though somewhat less panicked than early in the pandemic, are changing their lives, escalating, and in some cases elevating, their plans.
In short, after a brief slowdown over the Holidays, the market is just as active in 2022 and forecasts predict it will stay that way throughout the year.
Our biggest challenge on Kauai is inventory. Properties on Kauai have recently sold for prices previously unimaginable. With the market moving so fast, it’s tough to keep up with current values. A recent WSJ article cited that in August, 13% of all appraisals are coming in under the contract price. This has forced some Buyers to bring more cash to the table to get the home they want. It has also provided Sellers with leverage to get more from a Buyer, whether that be a renegotiation of terms, timeline, or price. Sellers know if they cancel the contract, it will be picked up right away and they will likely get more for their property, than when it first went under contract.
Your Realtor needs to be heavily active in this market to have a strong understanding of the proper strategy to prepare, price, and quickly sell your home. The few homes that are sitting on the market are homes that have not been properly prepared to sell and even so, are overpriced. A property that is “market-ready” will fetch a higher price more quickly, and often procure multiple offers. Securing backup offers should be part of the selling strategy, as some Buyers are quick to lock up a property, only to fall out of love weeks later.
For Buyers, your Realtor can advise you on the best strategy to take to get the home you want. Get pre-qualified now, before you start looking. If you’re paying cash, be prepared to show the Seller you have the money. Temper nit-picking, particularly if there’s a backup offer in place. This is no time to hesitate. If you find a home you want, put your best foot forward at the onset. In the end, it will be worth it and you’ll eventually get the home you want.
