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

Every Buyer Says They Want A Great Deal... But That Isn't Enough Information!

1. Shopping for Property. If I know what you really want and can afford, as your Big Island real estate agent I can send you the listings that might match your goals. I've seen some e-clients focus on finding the "Cheapest Price", while in doing so may miss the "Better Value" property. Often they spend hours shopping in a certain price range and then say, "I'm not seeing what I want". What they want may be just a little above the price range where we have been looking. Hoping that a Seller will "just give it to me for less" almost never happens in real life. I have also seen clients spend hours searching to find the "Perfect House" but it turned out to be in a different 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. We can accomplish your goal much more easily if we start off looking in the right price range and the right location that fits your needs. Great Price but Unfortunate Location

2. What Are You Really Looking For? A piece of land to build or for an investment? A lower priced fixer or starter home, medium priced average or newer home, or a higher end home on acreage or with an ocean view? Do you need enough land for a garden, or acreage for a farm or personal retreat? How far to town, shopping, school, hospital or the airport? How do you feel about unpaved roads and rainwater catchment systems? If I have a good idea of what you want, as your real estate agent, I can help simplify the process by sending over some possible choices from our multiple listing service for you to review. Big Island FAQ

Location: We can search for property by Hawaii County district (Hilo, Hamakua, Puna, Kona, Kohala, Kau), by tax map key area, zip code, or by specific subdivision. 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. TMK Information

Affordability and Terms of Sale: What are you thinking in terms of price range? Are you pre-approved for loan for that amount? It is helpful to understand that in real estate "You get what you pay for." ie., Fixer or Foreclosure homes are often less money but require extra cash for needed maintenance or repairs, while newer homes usually do not. Big Island home and land prices can also vary widely depending on location.

To determine what you can afford, 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 or the types of loans that work on the Big Island. For budgeting purposes, plan on about $500-$550/month for every $100,000 you borrow using a 30 year loan ($650-$700/month on a 15 year loan), plus insurance and property taxes. Real Estate Referrals

Does the property itself qualify for a bank loan? Sellers are generally selling because they need cash or relief from debt. If a Seller is offering to give financing on a Hawaii home, it is usually 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 (most often due to permit issues.) If a property was constructed without permits, most lenders won't loan on it. If the home is partially permitted, then only the permitted portion will be included in the appraisal, so you will need extra cash or Seller finance for the difference between the appraised value and the selling price. Seller financing is more often available for land parcels as it is difficult to get a bank loan on a low priced parcel of land. You can expect to pay more for a property with Seller financing, and interest rates tend to range from 8% to 12%, with the loan due in full within 2 to 5 years. An alternative for Seller financing on Hawaii vacant land is a personal line of credit from a Credit Union, an equity loan on your existing home, or even some of those credit card check offers in the mail are good deals!

Size of Property: We can search by the minimum or maximum square foot of house or land, number of bedrooms and bathrooms, etc. Houses tend to be smaller in Hawaii as we have good weather year round, which is also 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?

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

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 boxes of our MLS, and send you updates that match 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 increasing the price or adding alternative areas. When a specific property is of interest, 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. See My Real Estate Listings

Our MLS listings are best used as a guide to what is available in the price range. Almost all of my e-clients end up tossing out 90% of what they have seen online once they are here, do their area drive bys, and get a real 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 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 full of opportunity - we have something here for just about everyone!

4. 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 reserve time for 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 HiloAgent 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 94% 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. 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 that the property needs. On a Short Sale, the Seller is trying to get a lower loan payoff amount than what they owe. It can take 90 days or longer for them to get approval, and it doesn't always happen. If a loan pay off amount is agreed upon, the Seller's Lien Holder can still ask that the Seller to cover certain expenses out of pocket, or for the Buyer to increase their offer. You often will have 30 days to close after short sale approval. On a Foreclosure, the Bank already owns the property. They want to know that you have your proof of funds or loan prior to offering on the property. They also often 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 time and can be slow to reply with documents and information. So it is a "hurry up on the Buyer's side and wait" situation. It can drive a Buyers crazy! What is a Short Sale? What is a Foreclosure?

How is the Realtor paid? Realtors are self-employed sales agents. The MLS is where member agencies post their listings, which means the real estate agents here basically all have the same inventory to sell. I realize that potential Buyers are not only looking at houses, but also shopping for the agent whom they want 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 early in our work, I need to know that I am going to be your agent when we buy a property. I get NUMEROUS inquiries about Hawaii real estate, so I need to be somewhat protective of my time so that I can be available to my dedicated clients for showings, negotiating offers, and handling the many issues that come up with the inspection, loan and escrows. I only get paid for my time and expense when we close a property transaction. Thank you for understanding! More About Me See My Video

What about Hawaii FSBO For Sale By Owner 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, 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 Big Island, 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?

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

Real Estate Resources

1031 Exchange Common Problems in Hawaii Homes Hawaii Fair Housing Hawaii Home Sales Statistics Hawaii Housing Programs HUD: Homeownership Hawaii

Hawaii Title Tenancy Chart Lead Based Paint Mold Information Mortgage Fraud Move Advocate Relocation Assistance Property Tax Calculator FHA Rehab Loan

Hawaii Island Maps


Hawaii Distance Chart	Hawaii District Map	Hawaii Lava Zones	Hawaii Rain Map	Puna Map

Hawaii and Real Estate Resources

Hawaii Guides and Maps

Legal - Real Estate - Tax

Ready Map Book of Hawaii

Need A REALTOR® on the Big Island of Hawaii?

If you need a friendly agent with experience in our local Hawaii real estate market to help you buy your home on the

Big Island, please write to me. I'd be glad to help! Kevin E. Lewis, Realtor® in Hilo Hawaii HiloAgent @ Yahoo.com

Kevin E. Lewis, Realtor serving Hilo Hamakua Puna and the Big Island of Hawaii

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Kevin E. Lewis, REALTOR® HiloAgent.com - Prudential Orchid Isle Properties, Hilo HI - NOBODY Knows the Big Island Like We Do!™

The term REALTOR® is a federally registered collective membership mark which identifies a real estate professional

who is member of the National Association of REALTORS ® and subscribes to its strict code of ethics. Why Use A Realtor?