From a buyer’s perspective, what did we learn from the 2017 market about buying a home on Kauai?
First, prices have come back from the bottom of the market in 2011 and 2012. Depending on the transaction, they are almost back to where they were at the top of the market. Most areas still have another 15%, 20%, or 25% to go.
One of the things that started happening toward the end of the last year (that’s very prevalent now) is we don’t have a lot of inventory. You might look at the national statistics and think that real estate sales are down. However, the sales volume is down because inventory is down.
What does that mean for you as a buyer?
You need an agent who is going to pay attention so that you can react quickly when the right home at the right price comes on the market. You also need an agent who networks with other agents because other agents may have access to pocket listings. A pocket listing means that there is a seller out there who tells their agent, “I don’t want to put my home on the MLS but if you find a buyer, here’s the price that I want.”
Finally, make sure that you get an agent who is aggressive and will help you figure out the right price to get the property. A good agent will encourage you to write a personalized letter to create an emotional bond with the seller so that you get the house you want.
On the bright side, interest rates are still good. There are rumors that the Fed will raise rates a few more times this year, but that may or may not affect mortgage rates.
Ultimately, if you want to buy a home, the 2017 market has taught us that you need to be prepared.Have your pre-qualification letter ready. If you are paying cash, make sure you have proof of funds. Get that personalized letter written and put together a great offer.
When you work with our team, we’ll send the offer and follow up with the seller’s agent to put you in the best position in a market that’s increasingly competitive.
If you have any questions for us, just give me a call or send me an email. I would be happy to help you!