Lanikai is a highly sought-after destination for those who want to experience the good life. This little slice of paradise exemplifies Hawaii’s best qualities, and thus has become a huge draw for luxury homebuyers in recent years. It even has the distinction of having the most expensive property sold on Oahu, a luxury home bought for $23.9 million.
Are you looking to sell your Lanikai beach house? Are you wondering about the best time to put your home on the Lanikai Beach real estate market? Let me, Erik Taniguchi, guide you through the process.
Below are some of the key home selling trends and information that you need to consider to make a well-informed real estate decision.
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UNDERSTANDING THE LANIKAI REAL ESTATE MARKET
As a small community that provides easy access to its famous beach, Lanikai has skyrocketed to become one of Hawaii’s most expensive real estate markets in a relatively short amount of time.
What are the factors that affect the sale price of a home in Lanikai?
- Location dictates how much a luxury home should sell for. Lanikai homes in popular neighborhoods or located close to beaches and convenient amenities are known to attract the most discerning buyers and command top dollar.
- The condition of the property is another major factor, as well-maintained homes with state-of-the-art features and luxury upgrades are the ones that draw the biggest attention. If your property is looking a bit outdated or worse for wear, you might need to take on a renovation or remodeling project or two to bring it up to show-ready level prior to sale.
- Comparable sales or comps is another crucial tool for determining a property’s market value. Comps are used to assess the value of a property by comparing it to similar properties that have recently been sold in the same area. Your real estate agent’s comparative market analysis (CMA) helps determine the appropriate listing price for your property
As of December 2023, Realtor.com reports that the median listing home price for Lanikai and the rest of Kailua was $1.7 million, representing an increase of approximately 6.5% from the same time in 2022. During the same month, home prices in the area ranged from $319,100 to a whopping $50 million. Homes in the area sold for more or less the asking price on average, indicating strong buyer demand. However, experts are quick to note the unpredictability of the Lanikai Beach real estate market, so it would be wise to get started on your home selling plans sooner rather than later.
SEASONAL TRENDS IN LANIKAI REAL ESTATE MARKET
As a tropical island, Hawaii only ever has two seasons, hot (kau), between May and October, and cold (ho’oilo), from November to April. Unlike the northern states where real estate can grind to a near halt because of heavy winter weather, the Lanikai property market is active all year round. However, this does not mean that home sales are not impacted by the seasons. All over the country, the different seasons influence housing prices significantly, and Lanikai isn’t immune to this. In fact, they can impact the price of Lanikai homes by as much as 10%.
Best time to sell a home in Lanikai
Of course, situations are going to be different for each home seller, and when you should list will depend on a lot of factors, both personal and external. Use the information below as a guide and not as a final determinant. Most important of all, consult with a local luxury real estate expert to ensure you choose the best time possible to sell your Lanikai home.
For top prices. Research shows that if you want to net the biggest profit from your home sale in Hawaii, the best month to sell your house will be in the month of August. During this month, the median sale price for homes in the area tends to be significantly higher than the annual average. In some cases, the difference can amount to $100,000.
For faster sales. For a fast sale, the best month to put your home on the market will be May. Lanikai homes sold during the first month of the summer season typically sell eight days faster than the annual average.
Slower months can yield stronger sales. November and December are the slowest months for home sale in Hawaii, but not by much. Tourists from colder locations who are on their holiday break have been known to shop for homes while vacationing. Thus, it would be folly to dismiss both months as a bad time to sell. In the past, some communities have reported that the end of the year was their strongest home selling months.
Advantages of selling per season
When it comes to home selling per season, it’s important to understand that each one comes with its own unique pros and cons. Your agent can help you get to know the real estate trends in your community and help you develop marketing and branding strategies that make the biggest impact.
Selling during spring and summer
As the season of renewal, spring is a popular time to sell and buy. Peo ple are giddy, active and excited in the spring and summer months, providing you with an exceptional opportunity to sell your property fast and for more. It’s also the time when annuals germinate and bloom, allowing you to show off your property’s best features and leave a lasting impression.
However, there’s more competition in the spring and summer, so you need to invest in making your home standout. Likewise, expect more showings and foot traffic during these peak months, which means you should be ready to spend more to keep your home looking its best for showings.
HOW TO PREPARE YOUR HOME FOR SALE DURING WARMER MONTHS
- Declutter every room in your home to make it look bigger than it is. Put away personal items such as family pictures and souvenirs.
- Paint to refresh the home but if the house is in great condition, deep cleaning may suffice.
- Keep your lawn in top shape. Fertilize plants so they remain lush throughout the peak months and key to your curb appeal.
- Have your HVAC serviced so the house remains cool when potential buyers drop in for a showing or an open house.
Selling during fall and winter
The good news for home sellers in Lanikai is that the fall and winter months remain a suitable time to sell. There may be fewer buyers, but there’s also less competition, which makes it easier for your property to catch the attention of those who are genuinely motivated to buy a Lanikai luxury property. Longer sunsets also tend to make a home look more warm and enticing during showings, and more vivid in photos.
While winters are warmer in Lanikai than any of the four-season states, it remains important to keep your home prepared for the cooler temperatures and looking its best.
HOW TO PREPARE YOUR HOME FOR SALE DURING COLDER MONTHS
- Have your furnace checked to ensure the system is in working order, without carbon monoxide leakage. If you have a fireplace, put it to good use.
- Turn on all lamps or use brighter bulbs in anticipation of overcast days. Choose lights not based on wattage but on lumens, which measure the brightness of a light source. The higher the number of lumens, the brighter the light. In contrast, the wattage of a bulb refers to the amount of energy it consumes. Here’s a general guide:
- Low light (mood or accent lighting): 100 to 300 lumens
- General ambient lighting: 300 to 700 lumens
- Task lighting: 700 to 1,300 lumens
- Bright general lighting: 1,300 to 3,000 lumens
- Very bright lighting: 3,000 lumens and above
- Have your roof inspected for leaks and masses of moss and lichen.
- Trim and prune landscaping and add mulch.
- Rake the grounds.
- Painting your home isn’t advisable due to the unpredictability of the weather, but a deep cleaning will do wonders for your curb appeal.
6 PROVEN TIPS TO MAXIMIZE THE VALUE OF YOUR HOME
The first step in maximizing your home’s value prior to selling it is to make a plan, with details on how to execute it. Going in unprepared will only waste your time and money and cause stress.
Here are tips on boosting the value of your home:
- Abide by local codes
Like most jurisdictions, Oahu requires a building permit for alterations, additions, and renovations. While obtaining your permit, make sure to check if your project abides by local codes. Then, begin with high priority projects.
- Hire professionals for larger projects or historic homes
Taking the DIY approach can be fun, but it’s important to acknowledge your limits when improving your home. It’s one thing to replace fixtures and bulbs, but it’s another to take on projects you don’t have the skills for. Hire a trained technician for any large scale electrical, plumbing, HVAC, and carpentry tasks. Hiring a professional is especially crucial if you own a historic home, which has its own set of requirements including using special construction materials and restoration techniques.
- Give your backyard plenty of attention
Many homebuyers want plenty of backyard space. They want an outdoor living area with features like patios, gazebos, and fireplaces to make it ideal for get-togethers. You can add a water fountain, an exercise area, or a reading nook but stay away from features that will turn buyers off because of the perceived upkeep.
- Upgrade your kitchen
Many luxury homebuyers treat the kitchen as the heart of the home, and surveys have shown that new kitchens are the main factor in homes selling above list price. Thus, it’s important to update your kitchen to enhance appearance, convenience, and organization.
Restaurant-quality appliances, a sizable pantry, and wine fridges help elevate the feel of a luxury living experience. If the cabinets are in fairly good condition but look old, a fresh coat of paint can be an inexpensive way to update them. Replace handles and knobs with sleek, modern fixtures – an easy fix that can truly transform the look of your kitchen.
- Make it a smart home
Forbes reports that 72% of millennial homebuyers feel that smart home features are a major consideration when shopping for a home. Of that segment, 42% would be willing to pay $3,000 or more for such technologies. Some surveys even claim that younger homebuyers are willing to give up square footage in favor of having more smart features in their home. If you do decide to install smart thermostats, invest in internet-connected appliances, or switch to automated lighting systems, you’re likely to increase the value of your property (or personally enjoy these upgrades before you list your home).
- Price it for the season
Selling your house during the peak selling times of spring and summer is a safe bet. However, the Lanikai real estate market can vary depending on national and local trends. For more accurate pricing, your local real estate agent will analyze real estate data from the past few years to estimate the best time to sell a house in your area.
HOW TO CHOOSE THE RIGHT AGENT TO SELL YOUR LUXURY HOME
With today’s buyers snapping up Lanikai homes at approximately the asking price, it’s an optimal time to sell your home. However, it would be folly to think that you can fetch top dollar for your property without putting in the work.
Luxury properties require a unique approach to selling, and to ensure that your home stands out, you need to work with a real estate agent who is equipped with the necessary tools, skills, and experience to guide you through the process.
Here are the top reasons partnering with a bona fide luxury real estate agent is crucial when selling a home in Hawaii.
- Experience counts
A real estate agent should have a history of marketing high-end homes. Experience counts because it indicates an in-depth understanding of what luxury homebuyers want and knowledge of how to reach such buyers.
- Knowledge is power
Good agents of luxury homes always have an ear on the ground and stay on top of market trends in the locations they specialize in. They will know the prices of luxury properties in your area to ensure yours is priced competitively. They’ll advise you on ways you can boost your home’s value . They know the types of properties in your area, how much they are selling for, and how long they stay on the market. Their knowledge is crucial in maximizing your profit from the transaction.
- Understands the law
The process of selling a home in Hawaii comes with plenty of rules and regulations. For instance, as a seller, you could be subject to HARPTA (Hawaii Real Property Tax Act) and FIRPTA (Foreign Investment in Real Property Tax Act) regulations. Both are withholding tax requirements in the state of Hawaii that are levied upon non-resident homeowners who want to dispose of their property. Agents of luxury properties have considerable knowledge and understanding of laws governing real estate contracts in Lanikai so you can avoid legal issues down the line.
- Has impressive connections
Agents who have worked on luxury properties for many years have built a network consisting of:
- Potential buyers and investors looking for the right property
- Reliable financial institutions, attorneys, and brokers to help you breeze through your sale
- Home staging experts, contractors, and service providers to customize or improve your property before selling.
- Some can even set up your home for a global luxury home auction, which opens the door to a new world of real estate opportunities.
- Understands your goals
The most prolific agents of luxury homes go out of their way to get a clear understanding of your goals. They make themselves available to answer your questions and keep you updated on developments related to your property. They’ll ensure all the paperwork is in order.
- Is a savvy negotiator
Homeowners are often emotionally invested in their property, which can become an issue during negotiations. This stage of the home selling process requires a nuanced approach, balancing assertiveness and empathy. Your agent will try to win the buyer over but also know when to walk away and abandon the deal when it is no longer worth your while.
SELL YOUR HOME SUCCESSFULLY WITH KAHALA REAL ESTATE EXPERTS
Let Taniguchi & Associates guide you through this important milestone in your life. Ranked a Top 10 Realtor in Hawaii for the past three years and named one of Hawaii’s top real estate teams, the Realtors at Taniguchi & Associates have the expertise you need to sell your luxury home at the best price.
Armed with an intimate knowledge of the local luxury market and a global network across 54 countries, the real estate experts at Taniguchi & Associates are well equipped to provide you with a home selling experience that is smooth, successful, and tailored to your needs.
Take the first step towards closing the best and most profitable sale for your luxury home in Hawaii! Call Taniguchi & Associates at 808.596.2888 or send an email here.