“Dutch Auction” brings a sale in Kakela Makai!
How has the recent turmoil in the mortgage and real estate market affected sales and values in Kakela Makai?
Recently, it took a “Dutch Auction” to find a buyer for a very nice home in the neighborhood. A “Dutch Auction” is where the price lowers by $1,000 everyday until it sells. This is a big attention getter for real estate agents and bargain hunting buyers. But a quicker sale may have been reached by correctly pricing the home at time of listing. This is, of course, very difficult in the current downward sloping market. By conducting a “Dutch Auction” they were able to slowly find a market value price – the price which will bring them a sale!
There are also currently lots for sale as “distressed sales”. There is a lot for sale as a “Short Sale”. A short sale is where the seller owes more than they are asking for a property. The lender has to approve all offers and “workout” the situation with the mortgagor.
Another sign of the times is an REO property for sale. This is a situation where the bank has taken possession of the property and is selling it at market value rather than in a foreclosure auction. A lot that was recently on the market as an REO property is now under contract. Another indicator that correct pricing sells!
Here are some recent statistics for the neighborhood as of October 10,2008:
Number of lots currently for sale – 30
Number of lots sold to date in 2008 – 5
Number of lots currently pending sale – 3
Price range of lots currently for sale – $295,000 – $650,000
Price range of lots sold to date in 2008 – $316,000 – $515,000
Price range of lots currently pending sale – $229,000- $445,000 (list price)
Number of homes currently for sale – 11
Number of homes sold to date in 2008 – 3
Number of homes currently pending sale – 2
Price range of homes currently for sale – $895,000- $1,395,000
Price Range of homes sold to date in 2008 – $925,000 – $1,570,000
Price range of homes currently pending sale – $779,000 – $842,900 (list price)
The price range of pending sales (properties that are under contract but not yet sold) for both lots and homes is lower than both the properties currently for sale and sold in 2008. Buyers are still out there but seem to be buying the lower priced properties for now. The old adage “price sells” couldn’t be truer in this new Buyer’s market. With the downturn of the market we are even seeing some properties selling for less than what the Seller paid for it.
If you need to sell your property in this market, pricing it correctly is the most important factor. For Buyers, it is a good time to buy! Mortgage rates are still low and Sellers are finally reducing their prices.
Whether you are interested in buying or selling, or even just keeping up with the real estate market, please call or email me if I can be of assistance. Fran McDonald, RA, ABR Makai Prioperties, LLC, 808-635-0165 or FraninKauai@aol.com or check my website: www.FransKauaiRealEstate.com