Kauai Paradise Homes -- Blog

In this age of technology, it is only natural that the majority of people looking for homes or property will start that search on the Internet. This is wonderful because buyers are much more informed about the properties they are searching for before they contact an agent. On the other hand, a buyer should always enlist the services of an agent when they are preparing to buy a property.

There are several reasons for "hiring" an agent to assist in the search and purchase of a property. The most important are the following:

•1.       A buyer's agent represents the buyer's fiduciary interests. Let's be very clear: a seller's agent represents the seller, not the buyer. He looks out for the seller's interests and will work out the best monetary deal on behalf of the seller. A buyer's agent will look out for the buyer and will negotiate the best deal possible for the buyer.

•2.       The buyer's agent has access to all information about all the properties available in the area where the buyer is looking. Generally speaking, most agents are members of a multiple listing service (MLS). This provides them information not always given to the general public sites.  This can be very important information when considering a purchase.

•3.       There are many conditions and timelines involved in the purchase contract. The buyer's agent understands the purchase contract and will keep track of the buyer's and seller's responsibilities when it comes to the due dates of finances, disclosures, inspections, loan status, etc. Of course, if there are any questions regarding legal ramifications, the buyer is urged to discuss them with a real estate attorney for their own protection.

•4.       The buyer's agent is also much more knowledgeable about the area where the buyer is looking.  General web sites can't provide the knowledge and expertise of a real estate agent. The website doesn't know that the neighboring property is in shambles or there is a new shopping center going in a mile or so away. After all, anything that affects the property currently or its future resale value is important to know before buying any property.

On the flip side, because the buyer's agent represents the buyer, it is important that s/he instruct his buyer to contact him with any questions about a property or to schedule a showing for the property. The agent should also accompany her client on the showing. As agents, we understand that our clients continue to search the internet and drive around looking for "For Sale" signs; however, once they enlist the services of an agent, it is important to utilize that agent's expertise and access to information. Here on Kauai, most listing (seller's) agents will not show a property to a buyer if they are working with another agent; however, in the off chance they do, information can be passed to the buyer that may not be in their best interest. In my humble opinion, an agent who allows his client to contact other agents and go view properties alone is not fully representing the client.

One final note...a buyer's agent should realize that many people don't know that agency sites (e.g., RE/MAX, Century 21, Coldwell Banker, etc.) are geared to show contact information that only applies to their realtors benefit. For example, if you are on the RE/MAX site, all listings available in the area will pop up, but they will provide RE/MAX contact information for that area, not necessarily the actual listing agent.  This is wonderful if the person searching is not working with an agent already. However buyer's agents need to inform their buyers of this fact. I mention this because, just this morning I had two calls from people working with other agents who had searched my company's site and found properties they thought were our listings. Neither of the properties was ours. I told both of them to contact their agents and let them handle the scheduling of a showing with the actual listing agent.

Ciao for now and good luck!!!  

As the new year winds its way into existence through the problems left behind by the past years, we all find ourselves trying to have hope of a prosperous year to come. We have a new president coming into office with, what the news commentators term as, a major economic stimulus plan. All we can do is speculate...good or bad? I have heard some refer to the failure of Roosevelt's New Deal and remark that they hope President-Elect Obama heeds to the lessons of the past.

So, will the housing market be saved with this new stimulus plan? Will the consumers become more confident as the year moves forward and credit is finally loosened? Again, we can only speculate.

Here on Kauai, things have been flat. The median price of single family homes has only dropped by a mere .06% over the last year. This is incredible, considering sales have dropped off by a whopping 36%. We look to 2009 as a fairly flat year. We certainly don't expect any major increases. While inventory remains high, sellers are not convinced they need to drop their asking prices dramatically. So, for now, we are playing the wait-and-see game like everyone else.