by David Kucic, Hawaii Real Estate Agent
Hawaii Real Estate
Are your sellers giving concessions to buyers? I am not talking about giving them enough to put a 10 or 20% down payment but just enough to cover closing costs for example. The math is simple to figure out. I bet you have explained this to your sellers but they refuse to give in to the buyers in some cases.
I want to share with you the formula that I use to find properties for my clients that cant afford to pay the closing costs. Since the majority of my buyers are using their VA loan eligibility, they have to pay a 2.15% VA funding fee or 3.3% VA funding fee depending on whether or not it is their first or subsequent utilization of the benefit. With single family homes averaging right around 613k and condos averaging 315k, this can be very costly.
Here is my real estate buyers representation example of E=MC2:
1) Find several properties within the buyers price range as stated on the pre-qualification or pre-approval letter. I normally will pull properties that are 5-10k over the amount since there are some that are over priced.
2) Do CMA's to check the validity of the asking prices. Assuming the price is somewhere in the ballpark, I proceed to step 3.
3) Check the tax records to see how much the current owner paid for the property and when they purchased it. This will give me a good idea of how much leverage we can gain on the sellers.
4) Check out the Days on Market. The higher the number, the better the chance of getting an accepted offer (especially if #3 will have them banking some serious profit anyway).
5) Is the property vacant? If so, someone is making that mortgage payment and nobody is paying rent. If numbers 3,4 and 5 will all work in my favor then I am getting really HOT and close to finding something.
6) Look closely at the MLS remarks. Did the sellers agent put remarks such as "Seller is desperate" , "Will consider any reasonable offer" , "insult us with an offer", "seller already back on the mainland", "replacement property already found"......etc....
And there you have it. This did not take rocket science to figure out and it works like a charm. Now start making some offers for your buyer. Let them know it may take a few offers before they get one accepted but sooner or later they will get a taker.
I have had offers put in and rejected by the sellers quite often. The sellers agent knew they should take the offer but the sellers just wouldnt budge. A month later, the sellers agent called to let me know they were dropping the price.
I would like to hear back from anyone to see what other techniques you may be using to qualify buyers that normally would not be able to buy.
Aloha From Paradise,
David Kucic, Hawaii Real Estate Agent
MILITARY BASES, POSTS AND FORTS ON OAHU, HAWAII AND POHAKALOA TRAINING AREA BIG ISLAND OF HAWAII
Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii Schofield Barracks and adjoining Wheeler Army Airfield are the 2nd Brigade, 3rd Brigade, Aviation Brigade, 45th Sustainment Brigade and the 8th Military Police Brigade. In addition, the 8th Theatre Sustainment Command, 65th Engineer Battalion, 25th Special Troops Battalion and the 556 Personell Service Battalion are also part of the Division team and play an integral role in the success of the Division.
There are also two Brigades that are stationed in other locations. The 1st Brigade is stationed at Ft. Lewis, Washington and the 4th Brigade is stationed at Ft. Richardson, Alaska.
The 25th Infantry Divison has proudly served in numerous wars and conflicts around the globe. The Soldiers that make up the division are currently deployed to several locations to include Iraq.
Pearl Harbor: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii
Hickam Air Force Base: Pearl City, Pearlridge, Aiea, Salt Lake, Honolulu, Waipahu, Oahu, Hawaii
Marine Corps Base Kaneohe: Kaneohe, Kailua, Oahu, Hawaii
Camp H. M. Smith: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Tripler Army Medical Center: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Fort Shafter: Salt Lake, Moanalua, Honolulu, Aiea, Pearl City, Pearlridge, Oahu, Hawaii
Wheeler Army Airfield: Mililani, Wahiawa, Kapolei, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Helemano Military Reservation: Wailaua, Wahiawa, Mililani, Haleiwa, Oahu, Hawaii
Kahuku Training Area: Kahuku, Oahu, Hawaii
Kilauea Military Reservation: Hilo, Kona, Hawaii
Pohakuloa Training Area: Hilo, Kona, Hawaii
Makua Military Reservation: Waianae, Nanakuli, Makaha, Oahu, Hawaii
TEMPORARY LODGING FACILITIES FOR THE ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES ON OAHU, HAWAII
The Hale Koa Hotel on Waikiki Beach: Honolulu, H
The Inn at Schofield Barracks: Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
The Royal Alaka'i at Hickam Air Force Base
The Lodge at Kaneohe Bay and the Cottages at Kaneohe Bay
Navy Lodge Hawaii at Pearl HarborThe Beach Cottages at Kalaeloa (formerly Barbers Point NAS): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Tripler Army Medical Center Guest House
Bellows Air Force Station Beach Cabins
GOLF COURSES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES
Leilehua Golf Course (Army, Schofield Barracks) Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Walter Nagorski Golf Course (Army, Ft. Shafter)
Mamala Bay Golf Course and Kealohi Golf Course (Air Force, Hickam AFB)
Kaneohe Klipper Golf Course (Marine Corps, Kaneohe Bay)
Barbers Point Golf Course (Navy, Barbers Point): Mililani, Wahiawa, Kapolei, Waipahu, Ewa Beach, Waipahu, Makakilo, Oahu, Hawaii
Navy Marine Golf Course (Obvious Right?)
COMMISSARIES ON OAHU, HAWAII FOR ARMY, NAVY, AIR FORCE, MARINE CORPS, COAST GUARD, RESERVISTS, NATIONAL GUARD, DOD CIVILIANS AND RETIREES
Schofield Barracks Commissary near Wahiawa, Waipahu and Mililani, Hawaii Kaneohe Marine Corps Base Commissary near Kaneohe and Kailua, Hawaii Barbers Point Commissary near Kapolei, Ewa Beach and Makakilo, Hawaii Pearl Harbor Commissary and Hickam Air Force Base Commissary which are both near the cities of Pearl City, Pearlridge, Aiea and Honolulu.
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