In this Maui real estate market, sellers often make fundamental mistakes when pricing their property for sale. We are going to address just one here. The most common mistake is to "price for negotiation." In other words an owner will say "I want to clear $1.7 million for my property so I'd better list it at $2 million so I have room to negotiate." That kind of thinking can only lead to frustration and stress. Why?

Because it doesn't take into account essential exogenous factors incluidng the following:

• Recent sale prices of similar properties;
• Current listing prices of similar properties;
• The pace of sales of similar properties; and
•  How buyers actually buy Wailea real estate.

Let's start with the last factor. Buyers of Maui real estate will usually give their Realtor 2-4 hours of their time to go see properties. Good agents know that after seeing 5-6 properties, buyers usually get tired, a little confused and begin to long for a cocktail and the beach. So agents only show the very best values in each property class. If your property isn't priced to be one of those? You will simply get no showings. Then you will have lost the opportunity to create a hot property and will begin chasing the market through price reductions. It is a terrible process. Remember, your property isn't worth what you think it is worth, it is worth what someone else thinks it is worth.

OK, so if that is the wrong thinking, what is the better thinking? In simple terms, price to get showings and be a bulldog during negotiations. Why is that better? Because the first step to someone buying Wailea Real Estate is for them to fall in love with your property. But they can't do that until they see it and they won't see it unless is is priced as a value. Will the buyer still try to "lowball" you? Perhaps. But just say no until they get realistic. After all, they have now imagined themselves in your property. They are predisposed to making a deal. That is the key to selling your property. If they won't get to your price, so what? As a value priced property, additional showings are just around the corner.

Here is a specific example in today's market. Two Wailea condominiums came to market this week. The first is in a complex that has been reasonably active. The last several sales have ranged from $2.2 million to $2.8 million. The newly listed unit is a slightly better than average unit in terms of view and condition. It is listed for $2.595 million which makes it the second cheapest listing in the complex. The second unit is in a complex that has seen little activity. Comparable units are listed for $1.495 million, $1.75 million and $1.635 million and all have been on the market for over 180 days. The new listing? $1.938 million. Which do you think will receive more attention and which owner will end up frustrated?

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