Big Island Hawaii Real Estate

Kevin E. Lewis REALTOR® CFP® ABR®

Prudential Orchid Isle Properties, Hilo Hawaii

TEL (808) 969-7863 x130 HiloAgent @ Yahoo.com

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Kevin E Lewis, Buyer's Agent on the Big Island of Hawaii "Helping Clients Buy Homes and Land in Hilo Hamakua Puna and the Big Island since 2000."

Big Island Hawaii Real Estate Buyers Resources

In a couple of years from now, some people may be saying... "I could have, I would have, I should have... bought when it was a Buyer's Market!"

Hilo - Hamakua - Puna - Kona - Kohala - Kau

Real Estate on the Big Island of Hawaii: Every Buyer Says They Want A "Steal of A Deal"... But That Isn't Always Enough Information.

1. Shopping for Property: Do we look for the Lowest Price Property or Getting What You Really Want. How flexible are you? Some clients focus on finding the "Cheapest Property", while in doing so may miss the "Better Value" or better location property, that might be just a little bit more money. It is often best to focus on what you really want and can afford. I have seen clients spend hours of time shopping in a certain price range and then tell me, "I'm not seeing what I want". Often what they want exists at just a little above the price range where we have been looking. I have also seen clients spend hours searching to find the "Perfect House" that also turned out to be more just a little money than they could afford, was in the wrong location, or it didn't come up in our MLS search because it didn't match any of the criteria that they said was important. (I.e., Client wanted a house on acreage with ocean views and the "Perfect House" turned out to be on a small lot without a view in a different part of the Island.) It is a better use of our time if we can fine tune your goals at the beginning of our search! Great Price but Unfortunate Location

2. What Are You Really Looking For? A piece of land to build or for investment? A shack cabin or shell of a home, an entry level or fixer home, a medium priced average home, older or newer home, or a higher end home? How much land is important - enough for a garden or acreage for a farm or personal retreat? How about distance to town, shopping center, hospital or airport? What about views? How do you feel about unpaved roads and rainwater catchment systems?

Location: We can search for property by Hawaii district (Hilo, Hamakua, Puna, Kona, Kohala, Kau), or by specific tax key area, zip code or even by subdivision. Sometimes a client prefers to search everywhere on the Big Island. If we find the perfect property in the wrong area, will it still work for you? I have had clients ask me, "Can't you just move this house 50 miles away to the other area?" It's often better to focus on an area first, (price and distance to a town will narrow our search), then look for the best deals in the best fit areas. Tax Map Key Information

Price and Affordability: What are you thinking in terms of price range? Big Island Hawaii home prices can vary widely depending on district. Starter-Fixer homes will be less money but most often require extra cash for repairs, while newer homes do not. Big Island land prices can range from under $10,000 for an inexpensive buildable land lot in Puna or Kau, to $300k and higher for Hamakua or Kohala acreage with soil and ocean views.

What can you afford? To help determine this, I ask my clients to go to an on-island lender to get pre-approved for a loan so that we know your financial ability. You can go through an off-island lender, but they may not be familiar with the peculiarities of the Hawaii real estate market and the types of loans that work on the Big Island. For budgeting purposes, plan on about $550/month for every $100,000 you borrow using a 30 year loan ($750/mo on a 15 year loan), plus insurance and property taxes. Real Estate Referrals

Size of Property: We can search by the minimum or maximum square foot of house or land, number of bedrooms, number of bathrooms, etc. Houses tend to be smaller in Hawaii as we have good weather year round, which is why people like to have outdoor areas and decks. For land, do you want a smaller lot so you don't have much to take care of, enough to have a garden and some privacy from neighbors, or acreage for a farm or forested sanctuary?

Terms: Do you or does the property qualify for a bank loan? It is important to keep in mind that Sellers are generally selling because they need the cash. If someone is offering Seller financing, it is for one of 2 reasons - so they can get a higher than market price for the home, or because the home itself cannot qualify for bank loan. Seller financing is more often available for land parcels because it is difficult to get a bank loan on a lower priced parcel of land. You can expect to pay about 10%-20% more for a property with Seller financing, and interest rates tend to range from 8% to 10%, with loan due in 2 to 5 years. An alternative for Seller financed land is a personal loan from a Credit Union, a line of credit on your home, or some of these credit card check offers look like fairly good deals!

Utilities / Roads: Is there piped water or rain water catchment? Electric lines or off grid power? Paved roads or rustic graded roads? Frequently Asked Questions

Keywords: I can sort for certain words in the listing remarks such as "farm" "fruit trees" "privacy" "stream" "ocean view", "bank foreclosure", etc. However, this type of search is limited to the comments the listing agent has entered into the listing.

Sorting through the Opportunities: I can enter your desired criteria into the search feature of our MLS and send you email updates showing those properties as they come online. If there are too many listings, we will need to narrow our search. If not enough interesting properties show up, we can increase the possibilities by adding additional price ranges or areas. When one of the properties is of interest, please let me know so I can research additional information! If you just want to see "What is Available for the Money", you can get a quick idea by checking out my listings. East Hawaii Real Estate

Our MLS listings are best used as a guide to what is available in the price range. I have seen clients focus on one particular property that sold just before they arrived on island to see it. About 80% of my e-clients end up tossing out what they have seen online once they are here, do their drive bys, and get an idea of what is what and where the properties are. It does help however to keep a list of the most interesting opportunities so I can check to see which ones are still available when you arrive. It generally works out best when we sit down at the computer together to sort thru the MLS and narrow down from the hundreds of listings to a manageable number of choices and areas, most clients ask for maps to drive by the areas on their own, then we get back together to start booking appointments on the best possibilities.

3. Summary: 1) Figure out the amount of funds you have available and/or find out how much you can afford by getting pre-approved for a loan. 2) Look for the best area on the Big Island based on your price range and what is important to you. 3) Search for the best opportunities in the right area - not necessarily the cheapest priced property. Our Big Island is wonderful and fully of opportunity - we have something here for just about everyone!

Other Things to Consider

The Hawaii Real Estate "Buying Season" is the first half of the year. If you are coming here between January and May, please let me know as early as you can so I may schedule time with you. It's true that a handful of the agents are doing the majority of the real estate sales... so it is a good sign that your Hilo Agent has projects he is working on and needs to schedule for you!

How negotiable are the asking prices? In a recent survey of closed transactions, I found that sale prices on the Big Island of Hawaii average about 90-95% of asking prices. "Contingent Upon Sale", "Low-Ball Offers" or "Trade for my Mainland Property" are generally not being accepted in our local Hawaii real estate market. Big Island Real Estate Market Report

Short Sales and Foreclosures. They sound like a good deal. Sometimes they are. Sometimes not, considering the amount of repair work some of the properties need. You have to have a lot of patience and be ready with your cash or loan before we start. On a Short Sale, the Seller is trying to get a lower loan payoff amount from what they owe. It can take 60 days or longer to get approval, and it doesn't always happen. If a loan pay off amount is agreed upon, the Seller's Lender can still ask that the Seller to cover certain expenses out of pocket, or for you to increase your offer. You often will have 30 days to close after short sale approval by the lien holder. On a Foreclosure, the Bank already owns the property. They want to know that you have your funds or loan prior to offering on the property, and request that you close within 30 days or they ask that you pay a penalty for any delay on your end. However, the Bank may not be able to close in 30 days and are very slow to reply with documents and information. So it is a "hurry up on the Buyer's side and wait for the Bank" situation. It drives Buyers crazy. What is a Short Sale? What is a Foreclosure?

What about For Sale By Owner FSBO properties? I can work with you though a Buyers Representation Agreement, which means you have hired me to be your real estate agent. Often the Seller pays my fee as part of the offer price, sometimes it is the Buyer, sometimes it is shared - it's all negotiable and something we consider when we write up our offer. I get paid for spending the time with you to learn about the area, researching and comparing to see if the MLS listed or FSBO property is a better value, and assist as your representative though the offer and escrow process. Why Use a Realtor?

How is the Realtor paid? Realtors are commission sales agents. The MLS is where member agencies post their listings, which means the licensed real estate agents here basically have the same inventory. I realize that potential Buyers are not only looking at houses, but also shopping for the agent which they would like to work with. I certainly hope to be the one! But that is my point. I'm glad to answer quick questions. However, at some point I need to know that you are working with me as your agent. I get a LOT of inquiries about Hawaii real estate, so I need to be somewhat protective of my time so that I can be available to my clients for showings, running out to preview a property, negotiating offers and handling issues with the inspections and escrows. I only get paid for my time and expenses when we close on a property transaction, so I have to use my energy wisely. I look forward to working with you as your agent. Thank you for understanding! More About Me

I've been a full time real estate agent on the Big Island of Hawaii since 2000. I hope this information is helpful to you in your search to buy a home or land here on the Big Island of Hawaii. As your agent, we can work as a team to help you narrow down to what you really hope to find, and get your piece of paradise.

Aloha from the Big Island of Hawaii. - Kevin