Valuation
An opinion of value and underwriting assumptions or parameters. Provide support of the valuation with information from recent comparable sales and other pertinent information. For comparable sales, provide both the listing price and the sale price as well as time on market.
Depending on the sellers’ time expectations for disposition, we recommend a range of listing prices between $Xm and $XXm. While we suspect that any price within the range may garner the same number of showings, there is certainly a correlation between higher list prices and time on market.
The highest historical residential sale on Hawaii Island was for $37m in 2020, as noted in the attached Exhibit of Relevant Sales.
The bid-to-ask ratio for trades ≥ $10M has historically hovered around 85% and is lower in the highest price ranges of the market.
The highest (public) residential sale in Hawaii occurred in 2018. Hawaii Life represented both the buyer and the seller. The property (also listed in the attached Exhibit of Relevant Sales) was listed at $70M, and sold for $46.1M, illustrating that listing prices in the top-end of the market may still yield a significantly lower purchase price.
It’s worth noting that there is little risk in strategically (and infrequently) lowering the price at any time, especially based on market feedback, for the same reasons that Days on Market are less relevant than larger metro markets.
For that reason, we’d recommend starting at the higher end of the range, assuming there’s no underlying urgency to impact a sale.
Exhibits:
Relevant Listings
Relevant Listings Hawaii Statewide.pdf
Market Report
2022 Hawaii Luxury Market Report