In a down Hawaii real estate market, sellers face many challenges. Because of these challenges, they face the dilemma - to sell or not to sell. Depending on the reasons for selling the home, sellers will have a better chance or not, of recuperating some money and making a profit. When a seller cannot afford his/her property anymore due to financial hardship, increase in taxes, or sickness, divorce ... and many other reasons, a seller must sell the home fast to avoid ruining his/her credit score. If the seller is able to foresee future financial trouble, he/she must list the property with a knowledgeable and experienced real estate professional who can sell the property as quickly as possible. Failing to do this, may take the seller way down the road, into having to go through a short sale or even through foreclosure.
In the event that a seller has to move right away due to relocation issues - new job, healthcare treatments, caring for parents and other pressing situations, he/she faces the same issues and must sell right away to be able to not risk his/her credit rating.
Sellers who are in the position to stay longer in their homes, but would like to move to a larger home, out of state, or just retire or downsize, have more of a dilemma. They can decide to sell right away and not make a larger profit, or they can wait until the market recuperates and move later. However, since it is hard to know what the market will do in the future and how many years it will take to recuperate; sellers will have to decide if they want to wait as long as it takes, or if they can move on with their lives. For these sellers, staying may end up costing them more as prices on homes out of state may go up, and if moving in the same state, as real estate bounces back so will home prices, therefore making homes less affordable.
Both sets of sellers face the same challenges in the down market. They have to deal with buyers who are demanding more in negotiations because they can since there is a lot of inventory and competition among sellers. They also face the issue of making the property much more appealing than better properties in their neighborhood, and so making it more tantalizing to buyers by throwing in some extras - whether a home warranty, a discount, fixing the home according to the buyers request, or even throwing in great landscaping. The ways to negotiate can get very creative in this type of market.