Why Should I Use a Buyers Agent?

Today’s Kauai Real Estate Market offers challenges to buyers like never seen before. In addition to our national economic crisis, recent legal changes such as Federal guidelines for septic systems, a recent State law regarding Short Sales and local ordinances governing Vacation Rentals can seriously impact your investment. It’s critical to have a professional Realtor dedicated to assist you in not only finding the right property, but in the due diligence and negotiation necessary to make it a truly successful purchase.

  • For many buyers, including seasoned investors, the selection of a Buyers Agent has been very casual and often coincidental. Most sellers interview 3-5 agents - check references from previous clients, ask to see results and previous sales, and a marketing plan of what the agent will do to get their home sold. Have you ever done that when buying a home?  What services does your agent provide?
  • Not using a Buyers Agent usually costs money in loss of negotiating power, and potential losses due to lack of information or due diligence. Usually, the commission paid to a Buyers Agent is provided by the seller through cooperation from the listing agent. You may reach an agreement to pay your Buyers Agent to help you find a property that is not listed, or perhaps at auction - but the majority of purchases fall under the cooperating brokerage business model at no expense to you.  In other words, it costs you nothing, saves you money and reduces your risk!
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Kauai’s Real Estate Market offers many twists and turns that can have legal and financial implications for you and your investment. A Buyers Agent owes you a dedicated fiduciary responsibility to look out for your best interests.  Following are some areas of our local real estate market that can be complex and may be overlooked without representation:

  • CPR’s - properties that have been divided using Condominium Property Regime (CPR) Law. This may be a residential property, or Agricultural. Listings on MLS will show a “C” - ‘RC’ for Residential CPR, or ‘LC’ for Land CPR. There are many legal issues associated with CPR’s that you’ll need to be advised about.   For instance, if it's a smaller Agriculturally zoned parcel, the ADU permits may be facing expiration.
  • Vacant Land ... "ADU's, CPR's and Permits, Oh My!"
    After clicking your slippah's together three times and ending up in paradise shopping for vacant land...you might find yourself thinking, "we're not in Kansas anymore!"

  • Multi-Unit Properties - Looking for a residential property that has an “inlaw” or “studio” apartment seems straightforward. However, Kauai multi-unit residential properties involve many areas that require dedicated and thorough due diligence.

  • Short Sales (preForeclosure sales) - In the best of markets, Short Sales add many twists and turns for buyers with complications regarding the Seller and Lender.  Hawaii passed a law in 2008, called Act 137 or the "Mortgage Rescue Prevention Act" which was intended to protect homeowners at risk of foreclosure from predatory services.  Although well intended, the effect of this act was to limit services to anyone in "distress" on their property to only Attorneys.  That means, as a licensed Realtor, I cannot advise any client about options available to them to sell their home and avoid foreclosure if they are 60 days or more behind on ANY liens associated with their property.  Our market has many offerings, and it's up to each brokerage to determine their level of risk associated with performing services for clients at risk.  Hawaii Life is dedicated to our clients and we make every effort to adhere strictly to the Act 137 guidelines as they are legally defined.  That means when we look at Short Sale buying opportunities we have to be ready to do thorough due diligence, and walk away if necessary - at least until the law is modified.
  • Foreclosure or REO Offerings - Kauai is seeing an increase in bank owned, or REO properties on the market.  Historically, Hawaii has had one of the lowest foreclosure rates - but like the rest of the country, during the past year we've also seen an increase.  When buying an REO property, you will have NO sellers disclosure, and the sale is definitively "As Is".  Whether at an auction, or on the MLS resale market, it's tempting to become emotionally swayed with the illusion that just because it's a foreclosure - it's a great deal!  Not always so.  Working with a dedicated Buyers Agent, you'll have access to inside information - such as why it didn't sell before it was foreclosed, as well as "coconut wireless" history on the property.  Sometimes the best value is a good property with a motivated seller.  It takes a savvy Buyers Agent to help you sort through where the values for you truly are.
  • Fractionals - In the Kauai luxury resort second home market, a fairly new offering has hit our shores of known as Fractional, Shared or Interval ownership. Attractive in purchase price and flexibility of usage, it’s important for your Buyers’ Agent to assist you in your investigation of the legal and management structure, whether it’s a viable vacation rental location, and what might impact future resale values.

For more information check out these articles of interest regarding using a Buyers’ Agent:

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