Tips on Making REO offers in today’s Maui Marketplace- Pricing
It wasn’t long ago that buyers could bid on REO properties and offer less than asking and in some cases that may still be true, but most under 400k REO properties on Maui are seeing lots of action.
We had a recent listing that was an REO. It was a short sale that was foreclosed on. I recommended a higher price than the previous listing based on comps and that I knew it would be cleaned up a bit prior to marketing. We received an offer the first day on the market and went into escrow.
The first day of the listing I had 5 showings, and the following couple days prior to finalizing the contract with the buyer we had many agents, and buyers wanting to see the property and offer if it didn’t already have offer in place. One of the calls I received sadly was from an agent with a client who wanted to offer 100k under asking. This is something that I have to explain to buyers almost daily in Maui. We are starting to see our prices hold and volume of sales are up. If you are looking at property below 400k you are competing with a lot of buyers and many of those buyers are cash investors. We are seeing multiple offers at or above asking if the property is under priced to begin with. Being realistic and not wishing is going to get you the home you want still at a good price, just not a fantasy price.
When we advise clients of this turn in our market they seem a little shocked. Markets do shift and you have to be realistic and listen to a good agents advice on the current market. It doesn’t matter that you only want to pay X dollars for a home that we as agents know will go over full price. If we advise you against offering a lower price it isn’t because we want to “make more” or have you “pay more” it is because you have hired us a professional to assist you in acquiring a property you are interested in.
Our Fine Island Properties Team will share not only the comparable sales with you but also the current available Maui Real Estate Statistics so we can go over the market with you prior to having you decide what price makes sense and we will help you construct the best offer you canto acquire the home you want.
Aloha, Gina Duncan