1. First step is to contact a Lender: In this market the banks have really tightened up their parameters for getting a loan. The days of low or no documentation loans are long gone. You don’t want any surprised at the closing table, so it would be prudent to check with several lenders, banks, mortgage brokers. Sometimes your own credit union will have the best programs. Look at all the costs, not just the interest rates. Some lenders will offer a lower rate, but the other costs are higher. Do your homework. A pre-approved buyer always has the advantage in an offer situation. Almost anyone can be pre-qualified, which means you got a lender to write a letter stating that they would give you a mortgage loan based on information that you gave them, contingent upon them verifying that information. Becoming pre-approved is very easy: you complete your loan application with a credit check prior to beginning your home search process. Pre-approval means that you have actually been approved for the purchase by a lender, which gives you the edge in home purchase negotiating.

2. Beat The Competition to The Best New Listings: The search process can be both fun and trying. You will notice that some homes sell very fast and others hang around for long periods of time. The best homes at the best prices sell fast. Keeping on top of this is essential. Connect with a professional Real Estate agent that knows the market and keeps you updated.

3. Do The Research: Make yourself a "home value expert." Investigate the areas and price ranges for the kind of home you are looking for. Get a good idea of the price ranges these homes sell for and how long the market time is for them. Your agent is a great asset here.

4. Prove That You Are a Serious Buyer: The best way to accomplish this is with strong earnest money. This might mean that you put 20% or more down to get the sellers attention.

5. Don't Go Crazy: Even in a hot market, be cool and calculated with your decisions. Do not get emotional, think of this as a business transaction. A knowledgeable agent can really help you here. Your home purchase may be your single largest investment. It is important to make sure that you get the best deal possible. Overpaying now will make it harder to get your value back when you sell.

6. Keep Your Offer Simple and Clean: Make sure that your contract to purchase is simple, clean and not bogged down with unnecessary contingencies, especially repairs. Keep the time frames of repairs and responses to a minimum. The cleaner your offer, the more interested the seller will become. This may help you purchase the property at the best price.

7. Be prepared to wait, and wait, and wait: So many of the available properties here in Hawaii today are short sales. This means that the seller is asking the lender to take less money than what is owed on the mortgage. As time passes, the lenders are getting better at handling the tremendous number of short sales, but it is still a struggle. You may wait for a response to your offer anywhere from weeks to months. If you are considering making an offer on a short sale, make sure your agent has the National Association of Realtors Short Sales & Foreclosure Resource Certification (SFR) and knows how to get the deal done. An inexperienced agent can be a hindrance to getting the property you want at a fair price.

8. Foreclosures or REO’s:  REO means real estate owned. This is a property that was foreclosed on and is owned by the bank. The banks do not want to own real estate. They generally price it to move quickly with little room for negotiations. These can be a great value, but carry no warranties of any sort. What you see and also what you don’t see is what you get. These sale usually move fairly quickly with the response time to an offer anywhere from a few hours to a few days, depending on the bank.

9. Don't Wing It Alone: What you need most in today's complex marketplace is an experienced full-time professional real estate agent who represents your interests only. We know the surf is up, but you should be the top priority with your agent. No matter how heated the competition or the negotiations, a professional agent will represent your best interests, keep you from paying too much and help you maximize your investment.

10. Buyer’s Representation Agreement: At Hawaii Paradise Properties, Inc. we routinely use the  the Buyer’s Representation Agreement. This is a commitment between the agent and the client to work as a team to find your perfect home in paradise. As part of this agreement it is important to notify the agent and the broker if you do not feel the agent is giving you exceptional service.

Are you looking for an agent to represent you and your best interests? Generally, the home buyer pays nothing for a professional agent. Their fees are paid for by the seller. Click here to contact us today and find out how we can help you find the most house for the best price.