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Oahu’s housing market still remains very competitive. Mortgage rates and low inventory are two things driving sales.
Greg, Robin, and I have easily shown over 60 properties to our buyers in the past few months. We have written numerous offers too. Fortunately, many of our buyers were able to open escrow!
One of our April closings was a single-family home listing in Pearl City. In just a few days, we had over 40 showings and more than 10 offers. Thankfully, we were able to sell the property $85,000 above our original list price!
Due to our current market conditions, buyer agents can have very little leverage. Buyers are overpaying, they are adding appraisal clauses, and some are waiving certain due diligence contingencies upfront. Since sellers are receiving numerous offers, you have to put your best foot forward. You might only get one bite at the apple. Although terms matter, your offering price is one of the most important things.
If real estate is like high school football, being a buyer agent is like Kalani, while being a listing agent is like St. Louis School. It can be that lopsided. Despite the uphill battle, I have successfully helped four buyers purchase their homes this year. Interestingly, three of the four buyers were not the highest offer in their respective transaction. That is like winning the Super Bowl back-to-back-to-back. This gives my current buyers hope that not all sellers are going for the money.
Buying a home, especially in a competitive market, can be an emotional roller coaster. However, do not worry. If you keep submitting strong offers, one of them will eventually be accepted. Just keep marching forward one step at a time.
JUST SOLD
Greg, Robin, and I recently closed on a single-family property in West Oahu. Our clients relocated to Oahu earlier in the year. Despite their moving logistics, we were still able to help them to purchase their dream home!
The home was barely on the market for a few days. As experienced buyers, our clients submitted an above asking price offer with competitive terms. Even though the seller received multiple strong offers, they opted to work with us. This was a major sense of relief since we had shown numerous properties to our clients in the previous months.
Ramblings
Luxury
A recent Pacific Business News article noted "the number of luxury homes sold on Oahu during the first quarter of this year doubled from the same period in 2020, whiles sales of single-family homes and condominiums for $2 million or more nearly tripled in March alone."
Like many industries, real estate came to a pause when COVID-19 hit in early 2020. Despite the pandemic, our residential real estate market on Oahu has been competitive. Buyers see Hawaii as a safe haven since our COVID-19 cases are lower than other places. It will be interesting if more out of state buyers continue to flock to the islands since employers are allowing them to work remotely.
The Cost Of Living In Paradise
Finder.com reported that Hawaii is the most expensive state for energy. The average electricity bill is $321/month. Ouch!
Having the AC one 24/hours a day would be nice. However, not many of us can afford that. How can you keep your home cool without breaking the bank? As a homeowner, my wife and I made a few minor upgrades. First, we bought "smart" window AC units that have an "eco" mode. Second, we purchased a ceiling fan so it circulates the AC air more effectively. Third, we installed blackout curtains and drapes.
Do you have any other tips? Feel free to share!
Upcoming
Robin and I will be listing a split-level, single-family home in Kamehameha Heights. Bring us a buyer!
-Roda