Do you know how to determine the true value of your home in Hawaii? Whether you are selling your home or not, it’s a good idea to keep tabs on its value in case you do decide to sell in the near future (or perhaps take out a home equity loan). We can help! Learn how to do it right here in our latest post!
Many home sellers think they know what their house is worth but in many cases, their numbers can be significantly off from today’s market value. Unfortunately, too many people we talk to pull up their property on Zillow and become somewhat married to that figure. Zillow is just a computer program and until artificial intelligence truly ends up taking over society, it’s best to take it with a massive kosher grain of salt. Even your local agent or property appraiser is still, at the end of the day, giving you their opinion. So before you decide to sell your house yourself, to a company in Hawaii that buys houses like Oahu Home Buyers, or with a local Hawaii real estate agent, you should understand yourself how to determine the true market value of your property. That way, you can best plan for how to move forward and to help assess the different opinions out there that you may be gathering.
Run A CMA
A Competitive Market Analysis, or “CMA”, are often prepared by real estate agents, however, you can do one relatively easy enough on your own and come up with a reasonable ballpark value of your property. A CMA gathers and analyzes/compares information on homes that are similar to yours in a few different characteristics and that have recently sold, are in escrow and are actively on the market for sale. You can find much of this information on popular sites like Zillow or Trulia or realtor.com. Look for factors like: date of sale, lot size, living sqft (i.e. size of the house), # of bedrooms, # of bathrooms, year of construction and condition. Other items such as views, floor (for condos) and style of home (single family vs duplex) can also affect values, so make sure you’re doing an “apples to apples” comparison and adjust accordingly where need be. Hawaii neighborhoods can vary considerably from one street to the other.
There are some good tools on the internet that can help you figure out the market value of your property. Sites like Zillow, Redfin, realtor.com and the like will give you a computer-generated estimate. Just don’t take them as literal valuations since they can’t possibly take into account some of the aforementioned factors like condition, bedroom additions, single vs double-wall construction, and ocean vs city views. You might consider using all of them and coming up with an average value.
Hire An Appraiser
When you are still questioning the value of your property, hiring an appraiser can give you the professional opinion you need. An appraisal can be performed for just a few hundred dollars and will give you valuable insight into your property’s current market value. Before choosing an appraiser for your property, take some time to do some research. What are their experience levels and specialities? Do they primarily do condos and townhouses in Ewa Beach, or are they busier with luxury single-family houses in Kailua? Many sellers will schedule appraisals and inspections before putting their homes on the Hawaii. This will help them know what their property is worth and what challenges they might run into once a buyer is found, i.e. buyer concerns. A professional appraisal can also help if you are contesting the taxable value if your home with the local county. Many times people will feel as if they are being charged too much for their Hawaii property taxes. Having an appraisal done by a licensed Hawaii area appraiser will help you effectively challenge your local property appraiser if needed.
Watch The Market
Property values go up and down, sometimes daily, monthly or yearly. It’s not too hard to find the statistics online and get an idea of what’s going in on your market (Hawaii’s real estate market has been accelerating but is susceptible to a drop like any place). Your property may be worth more in the summer than it is in the winter, or vice versa. While this isn’t true for every property out there, some property values will fluctuate based on the season, demand, and availability (homes on the North Shore of Oahu, for example, get more traffic in the winter when the monster surf is up). As a homeowner, it’s important to always keep tabs on the market so you know when it might be a good time to sell.
What To Watch Out For…
Keep in mind that it is not unheard of for an agent to inflate the proposed asking price in order to get a signed agreement…..only to then have to drop the price later when the property…gasp!….doesn’t sell at the originally intended price. Golly gee whiz, who would have thought? But by knowing the value before going into a discussion, you will have the upper hand and will ultimately be able to receive the best outcome when selling your Hawaii house or knowing which agents are being straight up with you about the likely outcome.
If you opt to have an agent create a CMA for you, make sure all of the data provided is correct. You’ll want to check everything out for yourself to ensure accuracy in your valuation, so don’t be afraid to ask questions.