As Kauai has entered the Summer buying season, I’m seeing more buyers willing to go ahead and make their dreams of owning Kauai real estate come true. The credit crisis seems to have already hit as hard as it’s going to, Kauai is still a gorgeous island, and a place to fulfill your dreams.
What’s selling, though, are properties that appear to be a “good value” or “bargain”. A recent NY Times article titled “In Housing, the Strong turn Weak“ talks about how the Buying Season has a different twist this year – fewer sales, and buyers negotiating hard.
Although our Kauai real estate market is unique, many of the poinnts in the article do apply. We do have an oversaturation of listings, and buyers are looking for values. Not because they can’t afford them, but because they don’t want their investment to become “upside down” in value. One buyer quoted in the article expresses a sentiment I’ve heard from many of the buyers on Kauai I work with. He said “I am not afraid of the monthly mortgage payment, and I am not afraid of taxes, but I am afraid of losing the value I am putting in,” he said. “I believe the right deal will come along, and I am in no rush.”
What does that mean…?
For Sellers – it means you have to maximize your property’s appeal (staging) and price it aggressively.
For Buyers – work closely with your agent to make sure that you have complete comparable info on the properties you’re interested in, last sale, tax assessed value, etc. Foreclosures are often not a good value as the loan can be worth more than the property. You need to approach all opportunities with complete due diligence. Make sure your agent is working with you to give you thorough information, and is working in your best interest.