Some of my clients around Oahu have reduced prices on their homes this week, with the market seemingly slowing. The price reductions indicate a decline in the market and a coming to reality for sellers.

Usually when a seller wants to sell their home in Oahu, they assume that they won't get full price, and so they price it just above what they feel the sale price will be. Seems reasonable to most people that you don't always get full price. However, that tactic is backfiring on a lot of people lately.

Why?

Because believe it or not, many homes that actually close are coming in at or near full price. Yes it's true. Even though the Oahu real estate market is slowing in number of sales, homes that are priced right are selling at very close to asking price, or at full price. I've been going through the sales and found that a home either sells quickly at about full price, or it sits for a long time while the seller comes to grips with reality and lowers their home price a few times, until finally, he gets well below his asking price.

The bottom line is that homes are taking an average of 47 days to sell, so if you get beyond that without any offers, you've priced your home too high. So if you price your home according to the recent comps you should expect to sell quickly. In the case of my clients who reduced their prices, many of them wanted to get top dollar and even refused offers below their asking price.

One client of mine received 3 offers early on below asking price, but one of those offers was higher than his current list price. The market is not waiting for us, so we need to catch up to it. We need to come to grips with the reality of the current market.

Pricing a house for the market reduces the need for haggling.  Get your home sold quickly or you'll get less than you could have right out of the gate.