Kuilima Estates at Turtle Bay on the North Shore of Oahu, a very popular choice for resort living since the 1970s, is still highly desired property for investors and part-time residents alike.
Just recently, Hawaii Living set a record high for the sale of a one-bedroom townhome at Kuilima. Unit 102 at Kuilima East sold at the full list price of $650,000, surpassing the prior highest sale by $55,000!
This particular one-bedroom/one-and-a-half-bath townhome with a built-out loft presented in excellent turnkey condition and in the best possible location with direct golf-course frontage. Looking at the previous comps the closest one was a very similar townhome with almost the same golf-course frontage just a few buildings away. Like the other home, it was a turnkey with great views. With only seven days on the market, this property sold for $595,000.
Just seven days on market is a strong indicator that this particular model and location is very popular. Therefore, the owner and listing agent, Marcel Chan, agreed to price their property significantly higher. This approach takes a patient seller who is waiting for the right type of buyer who is willing to pay a premium and also has enough cash in the transaction in case the appraisal is lower than the sales price. Marcel required a so-called appraisal clause to be included in all offers that included a mortgage loan. This clause states that the buyer must make up any difference in cash up to a certain agreed upon amount should the appraisal come in too low. It is important to take the time to educate the seller to the appraisal cost methodology so the seller understands why it makes sense to price their townhome higher than the comps and why his/her home isn’t selling in seven days – that the wait is worth it in the long run.
In addition to managing the seller’s expectations in regard to receiving offers and being patient, it was of utmost importance to have perfect photography to showcase the property and give it maximum exposure online. HawaiiLiving.com now has more than 100,000 visits a month so this was the easy part!
After 52 Days on Market, the right buyer stepped up to the plate and made a full-price offer. They saw the value and potential of this very special property and helped us move the market.
This is just one example of how different approaches lead to very different results. Had we priced the property according to ‘the going rate’ it would have sold in a matter of days. This strategy is quite viable for a certain type of seller who may need to move the property quickly. However, a patient seller with an immaculate property and disciplined preparation and marketing resulted in a new benchmark at Kuilima.