Aloha, this is JP your Kalaheo neighborhood real estate specialist and resident. This is the update for Kalaheo in the months of June and July. There were nine sales of single family homes in the months of June and July. In my updates I include your typical price per square foot, Original List price vs Sale Price, Days on Market. A couple columns that I like to add that you don’t see often, or ever, is the Zestimate to sale price, or the Assessed value to Sale price. I like to include these because it is all education. Education for buyers and Education for sellers.
Many times buyers assume that because the County assessed a home a certain value that that is the market value of the home. Most often that is not the case as you can see below. Most often the assessed value is lower than the market value. Especially in Kalaheo. Some neighborhoods on island are a little different.
Now when it comes to sellers, many times they see Zillow and their Zestimates and think, well, Zillow said this is how much my home is worth, so that is how much it is. Wrong. As you can see below Zillow can be all over the place. Sometimes getting it right, but most often they are wrong. Take a look at the first entry. The Zestimate was off by more than 50%. That is because the home was in bad shape, but Zillow didn’t take that into account when providing a Zestimate. I’m not really sure what Zillow uses, but my guess would be location and price per square foot. With that rationale you come up with a figure of around mid 300’s. That is clearly wrong because some homes are in better shape than others. Some homes have upgrades that others don’t. And on and on and on…
Please take this information for what its worth. Just information on a small sample. It is information that can help you if you are thinking of buying a home to help you determine how much to offer and why you want to offer that price. If you are a seller, than it is also information you can use to help you determine a price that will help you get your home sold quicker and help you justify your price if low ball offers come in.
Currently there are 28 Active single family home listings in Kalaheo plus one condo listing and another condo/land listing. At the beginning of June there were 38 listings. That means inventory is going down and is a good sign for the future for sellers.
If you are a buyer than the time is yesterday. With interest rates at unheard of levels before and inventory slowly diminishing, and depending on your buying power, your window to buy may soon be closing.
if you have any questions or need any assistance real estate related here on Kauai please contact me.
Here is another market update from May: http://www.kauairealestategroup.com/blog/kalaheo-market-homes-sold-in-may-2016