Big Island Hawaii Real Estate Buyers Agent

Kevin E. Lewis, Realtor® - Prudential Orchid Isle Properties

Real Estate Buyer's Agent for Hilo Hamakua Puna and the Big Island of Hawaii

"The Best Time to Buy is When It's a Buyer's Market!"™

Interest Rates Are Low - Inventory is Good - Prices are Down - First Time Home Buyers Credit

Kona - Kohala - Hamakua - Hilo - Puna - Kau

Shopping for Real Estate on the Big Island of Hawaii

Every Buyer Tells Me They Are Looking for a "Steal of A Deal" ... But That Isn't Always Enough Information!

1. Shopping for Property: Lowest Price vs. Better Value vs. Getting What You Really Want and Can Afford. 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 more money. It is often best to focus on what you "Really Want and Can Afford". I have had clients who spent 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 above the price range where they have been looking. I have also had clients spend hours searching to find the "Perfect Property" that could turn out to be more money than they can afford, is in the wrong location, or didn't come up in the search because it didn't match any of the criteria that the client said was important. (Ie, Client wants house on acreage with ocean views and the "Perfect House" was on a small lot without a view.) It is a better use of our time if we can fine tune your goals at the beginning of your search! Great Price but Unfortunate Location

2. What Are You Looking For? A piece of land to build or for investment? An entry level or fixer home, a medium priced average 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 for your water?

Location: We can search for property by Hawaii County 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 island for the perfect property. 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? Location plays a major role in price. Big Island Hawaii home prices can vary widely depending on district. Starter-Fixer homes will be a little less but often require extra cash for repairs, while newer average 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 acreage with deep soil and sweeping ocean views. More about Home Prices

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. I have some recommended lenders listed on my Referrals page. You can go through an off-island lender, but they may not be familiar with the peculiarities of the Big Island real estate market and the types of loans that work here. 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: I can filter searches 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 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? Seller financing is sometimes available for land parcels. You can expect to pay about 10% more for a property with Seller financing, interest rates range from 8% to 12%, and terms are often from 2 to 5 years. If a seller is offering to carry a note on a house, it is generally because the home cannot qualify for a conventional bank mortgage.

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

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

"What is Available for the Money?" You can get a quick idea by checking out my East Hawaii Real Estate listings or our 2009 Prudential Buyer's Guide. I can also send you over a list of properties from our Hawaii Island MLS Multiple Listing Service that may match your criteria.

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 listings is of interest, please let me know so I can research additional information!

Listings are best used as a guide to what is available in the price range. Too often I have seen clients focus on one particular property that sold just before they arrived in Hawaii 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 listings 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, 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 - Three Easy Steps: 1) Find out how much you can afford by getting pre-approved for a loan. 2) Look for the right area based on your price range and what is important to you. 3) Search for the best value opportunity in the right area - not necessarily the cheapest priced property. Our island is big and wonderful - we have something here for just about everyone!

Other Things to Consider

The Hawaii Real Estate "Buying Season" is much busier in 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? Sale prices on the Big Island of Hawaii average about 95% of asking prices, if the listing is priced in the right price range. NOTE: "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 from what they owe. It can take 60 days or longer to get approval, and it doesn't always happen. The Lenders bank can ask for more money, and if the Seller doesn't have the money, they might you to raise your offer. Then their lender can demand that you be able to close escrow in 15 to 30 days. 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 your end and wait for us" situation. 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 the Buyer, sometimes it is shared - it's all negotiable in our offer 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 email 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 time and energy wisely. I look forward to working with you as your agent, and have you as a neighbor and friend. 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. East Hawaii Photos

Aloha from the Island of Hawaii. - Kevin

Real Estate Resource Websites

Kevin E. Lewis, Realtor® - Prudential Orchid Isle Properties

Real Estate Resource Websites

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