The Art Vs. Science of Honolulu Real Estate
August 13th, 2008 categories: Reasons To Sell
Many people look at statistics and numbers and the technological side of the real estate business. In my opinion, anyone can do this. The true value in having a qualified and experienced Realtor representing you, is that they are experts in the art of real estate first and the science second.
A great broker will know when the market has turned up or down before it has actually hit the statistics. If you are a seller selling, and want to save money when a market is declining, this broker can make you money by helping you avoid further market drops. Likewise, if a market is rising, then the market-selling price should be greater than that shown by the most recent sales. In this case, the Honolulu real estate broker will make you money through their knowledge that the market values are up. In my opinion, in any market, if you want to know the value of your property ask a great agent what price will sell it in the next 30 days and that is probably the fair market value. What about appraisers?
I’ve had the opportunity to work with numerous institutional owners of real estate that tend to rely on appraised value to determine their market price. In a rising market, they leave money on the table because the most recent closed sales will not show recent movements up in the value. Without knowledge of the upward trend an owner can pick too low of a price, thus leaving money on the table. In a declining market, the most recent sales will have sold for more than a current listing can get. Thus, a seller relying on an appraisal may pick a price that is too high, extending the market time and leading to a lower price.
A Realtor’s instinctive sense of the market direction is the real value he or she brings to the game. No amount of statistical analysis at Zillow or any of the other real estate information web site, can compensate for the “boots on the ground” knowledge gleaned by local real estate professionals. In a nutshell, trust them and trust their sense of the market.
Today’s picture is of the two towers of a condominium in Honolulu known as One Water Front
