For an extended period of time Maui real estate seemed to avoid the slowdown in the national market, but now it has undeniably arrived. Island wide, and in South Maui, we are seeing increased inventory, extended days on market, the occasional short-sale and wary buyers.

At present, in each property class, only two kinds of for sale properties exist, the very best values and everything else. The very best values receive regular showings and most of the attention from local Realtors. Other properties get largely ignored.

Understanding how the buying dynamic works is critical for sellers. Buyers have limited time and and attention spans when they are considering property. After seeing five or six properties in a given day, buyers tend to get tired and distracted. Their attention begins to wander and they want to go to the beach or to sip their favorite cocktail. Realtors understand this and as a result will only show properties they believe are the “very best values.”  Unless Realtors are persuaded your property is one of the best values, they rarely show it.

What do the economic trends and the buying dynamic mean for Maui property owners considering selling? In the simplest terms, either price your property to be the best value in your complex or neighborhood, or be prepared for little, if any, activity. Many sellers initially want to insure that they have “negotiating room” in their initial price. This approach is a mistake. Realtors and buyers will then exclude your property from consideration and won’t even visit it. Sellers are in a much stronger position to negotiate once a buyer has fallen in love with your property. But that can only happen once a buyer sees it. Either you price your property as a compelling value or you will have no one to negotiate with.

Sellers also sometimes wish to start at a higher initial list price and to move it down “if they have to.” This is also a mistake. By proceeding this way a seller wastes time in the market and loses the attention of local Realtors. The very best time to gain Realtor’s mindshare is when a property is first listed. Later price cuts can never recapture that initial excitement. The old adage is true “You never get a second chance to make a first impression.”

In today’s challenging market, it isn’t enough to want to sell. The properties that are selling are owned by people who really, really want to sell.. If you are one of those people, you must LEAD this market and NOT FOLLOW it.