Over the past year, we have shared the  news that the Kauai real estate market is “correcting” & prices are no longer sky rocketing. Does this mean you will be unable to sell your Kaua`i property? Not at all!!!! Here are strategies to consider:

CONDITION. Today’s Buyer looks at a property more critically, and less emotionally than in times past. The Buyer will take into consideration the deferred maintenance when analyzing a property for purchase. For example, 2 similar sized houses in the same subdivision are for sale:

HOUSE #1: This home is 20 years old with the original pressed wood cabinets, vinyl floor, and carpet. The wood shake roof was replaced in 1993, and there are occasional roof leaks during heavy rain. The cesspool is in the backyard and needs to be emptied and/or treated 4x per year. List Price: $500,000

HOUSE #2: This home is 20 years old. In 2003, the house was remodeled with new cabinets, solid surface countertops, wood laminate floors, and vinyl window frames. When the roof was replaced in 1993, the owners converted to composition shingles, and there have been no known leaks. In 2004, the owners replaced their failing cesspool with a state approved septic system. List Price: $500,000

Can we agree that the purchaser of House #1 will probably be faced with more maintenance issues in the near future than the buyer of House #2. Which house appears as a better value?

PRICE AND TIME. Perhaps your property was inherited and appraised in March 2006 for $500,000. The house has been on the market for the past 180 days for $500,000, based on the appraisal and the Realtor’s Comparative Market Analysis. The house still has not sold. Why?

The data used for the March 2006 appraisal may have included sales from the overly inflated market of late 2005-beginning 2006. If the property has not sold, and there are no glaring maintenance or neighborhood issues, there may be some “price resistance”.

If you lower your expectations & sell the property for $480,000, reinvest the net proceeds of $450,000 in certificates of deposits at 5.5% return, in 12 months, the net will have yielded $24,750. Yes, time is money.

TAXES AND YOU. Current tax laws are an important formula in determining whether to sell or “hold” a property. If you are contemplating the sale of your property, seek the advice of a Certified Public Accountant. He or she can advise you if your property qualifies for an owner occupant tax exemption or if a 1031 tax deferred exchange is advised.

The CPA can explain the difference between selling now or later, and tax ramifications of an estate sale. The time for financial advice is BEFORE listing a property for sale.

LOCATION. There is only one Kaua`i. If you are fortunate to live, own, and love Kaua’i, you understand Kaua`i is a special, “limited edition” place. You have invested in a place that survives economic cycles, and recovers from acts of nature.

Consider yourself Blessed!