In the current Waimea area market, it is a great time to sell, but tough on buyers. There is low inventory to choose from and buyers must prepare before seeking property. Because of the low inventory, sellers are getting what they ask for, as long as it’s within reason. Buyers are having a very tough time finding anything, and they are paying top dollar if they are lucky enough to secure a property.
Just How Ruthless is the Hawaii Buyer’s Market?
Some buyers are having a hard time understanding just how tough the current Hawaii real estate market is. This is not a time to put in a low offer, “just to see”. Study the market for just a little while and you will learn that properties are selling very quickly, for list or above.
I have not yet received an offer where a large earnest money deposit would be forfeited to the seller if the deal fell through, but I’m not going to be surprised to see that term.
At this point, if you must sell a home in order to buy a new home (a home sale contingency), you should be prepared to put up a large deposit and be willing to forfeit it should your existing home not sell.
I have sellers who just rejected an offer from a buyer who indicated he was willing to pay far more than the list price but included a home sale contingency. The sellers were able to reject it because another very strong offer had been submitted even before the property was listed on the MLS.
In a Market Tough on Buyers, Prepare!
Buyers who can’t afford to buy a property while still owning another property should be looking into bridge loans. They should also know their budget and share the information with their agent. If financing is needed, arrange it before looking at properties since there won’t be time to obtain it after choosing a property. The sellers will likely go with someone who is paying cash or submits a pre-qualification letter with their offer, so it is best to remove every possible contingency from an offers. They should be prepared to pay list or above.
Truthfully, bargain hunters need to sit this market out. The market is likely to soften a bit as interest rates rise, and cash may once again justify a slightly lower contract price.
For questions and inquiries, give me a call or email me at Judy@livinginwaimea.com. To learn more about me and my background, read more or watch my introduction video here.
Judy Howard, Esq.
REALTOR® | RB-23241 808.885.5588
Judy@livinginwaimea.com www.livinginwaimea.com