After working diligently with Hawaii Home Sellers, I KNOW what it is like to battle the banks for my sellers who are under water and getting them into contract to closing. I also know what it’s like to battle for my Hawaii Home Buyers to get into a normal transaction; let alone a short sale transaction. Why?
WE ARE IN A SELLER’S MARKET.
Short Sales are no easy picnic for the home seller or home buyer. The process is lengthy and in many cases multiple offers are being submitted for homes, condos and townhouses because for 1) Inventory is LOW LOW LOW 2) They are not listed properly at market value. In other words, just because it is a short sale doesn’t mean it should be listed way under market value! Especially, a nice property that has had plenty of upgrades and move in condition!
Even for a regular Home Sale 1) Inventory is LOW LOW LOW and 2) The property will not appraise if it is not listed properly at current market value. OVERPRICING can be the death of a deal. It can cost the seller time, money and ….faith in the real estate agent who said it was worth more than what it is.
A few tips for Hawaii Home Buyers looking for a Hawaii Home:
· Make sure you have the time and patience to wait for a short sale to get approved by the bank. If you don’t then there is no sense wasting your, the agents, the seller and the bank’s time. The short sale MUST be approved by the lender and just that process could take anywhere from two to four months (or even longer) and then another two to three months for the transaction process once it is approved! DO YOU HAVE TIME CONSTRAINTS?
· Before you have your Realtor® write up that contract make sure that they check current comps (preferably the last three months) and that the property is listed in a comfortable price range. If it’s too high it is not going to appraise and too low and the bank may not accept it anyway. If you are an unsure Home Seller, get an independent appraisal!! THE LENDER FOR THE OWNER ORDERS AN APPRAISAL, even if you have an all cash offer!
· The Lender most likely will request that the property be sold "As Is" and because of the sellers hardship they most likely will not approve any repairs or credits for repairs. They may not even approve of paying for the association documents, pest inspections, surveys and so forth. You may have additional costs to deal with so be prepared. DO YOU HAVE ADDITIONAL FUNDS TO PAY FOR ITEMS REQUESTED BY YOUR LENDER?
· Have a Professional home inspection even though the lender may not approve any repairs, remedies. It is in your best interests to KNOW what may need repairs and what you may need to fix. If there is structural, hazardous, electrical and plumbing issues that would take a considerable amount of money to remedy a home inspection will reveal all. RESALES AND EVEN NEW HOMES MAY HAVE ISSUES.
· Make sure there are no additional liens on the property! Have the sellers paid all maintenance and association dues? If not, guaranteed the Association and AOAO has filed a lien against the property after a few months of non payment. Does the seller have state/federal tax liens? Guaranteed they will have to have an arrangement and cannot sell the property with outstanding taxes owed! MAKE SURE YOUR AGENT DID THE RESEARCH!
· There may be more than one offer due to the lower list price of the property (and condition) so as always...put in your best offer. If you looking to just lowball an already lower priced home then your killer negotiations will most likely lose the home you really love. ARE YOU TRYING TO BE A KILLER NEGOTIATOR IN A SELLER’S MARKET?
Make sure you have a knowledgeable Realtor® who can explain the Short Sale Process and all that is typically involved in this type of transaction. The items listed above are not in any way a complete and comprehensive explanation of the Short Sale property on the market.
Call me if you are thinking about listing your property for sale....
….or if you are searching to buy a Hawaii home.
….Short Sale or not…..Let’s Talk!!