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Do: Get Pre-Approved
Don't: Get Pre-Qualified
If you want to pay the least amount of money for your home, get pre-approved. The point is to position yourself in the strongest negotiating position possible. The seller wants top dollar, yes, but he also wants a buyer that can perform. A pre-qualification is a letter a lender provides to you after a short conversation-it is not a verification that you can perform and therefore worthless to the seller! A pre-approval letter lets the seller know that someone has checked and verified that you are financially able to buy this property.
Do: Use a local Hawaii lender
Don't: Just pick anyone
Use a local lender from Hawaii, if possible. The escrow process can be made into a real headache if you've got a non-responsive lender. Also, the forms on which offers are made are standard throughout Hawaii and are unlike other states. Your lender must perform on three specific dates or it can cost the sale. Not to mention Hawaii's closing process is slightly different from other states as well and loan documents need to be prepared and sent on the right day in order to close on time.
Do: Sell your Property First, Then Buy
Don't: Put in an offer contingent upon the sale of your home
This is a classic problem for those in transition. Many people fear selling their own home before they find their new home. You'll end up paying more money for the house than you should have because of the contingency AND you have to sell your house in a hurry! See "Why You Should Sell Before You Buy" report for additional information.
Do: Identify your needs and wants before you shop
Don't: Buy a house on emotion
Never buy a home on emotion! Oahu has a wide variety of homes and price ranges, so sit with your Realtor? to discuss what fits you best. Purchasing property should never be an impulse buy. To avoid this problem give your Realtor® specific criteria on what your needs are. He/she should only show you what you can and want to afford as well as homes that fit your list of needs.
Do: Get a Buyer's agent
Don't: Use the Seller agent to broker the transaction.
It's simple; you never want to be represented by the same person who represents the seller. The seller agent is negotiating to get the best price and terms for his seller. A buyer's agent will negotiate the best price and terms for his buyer. Have your own agent research the property, the comparable properties, and negotiate for you!
Do: See beyond the staging
Don't: Don't buy a poor house that's nicely decorated
It's another sales tactic. Often times the seller will bring in staging materials-plants, blinds, table settings-anything to make the house look picture perfect. Take away the furnishings and all you see are the bare walls, flooring, doors, and fixtures. Are these items in good condition? Or do you see cracked windows, water damage, or signs of aging? This could be hidden costs to you later.
Do: Work Closely with the Right Lender
Don't: Delay on your financing
If you need financing, you need to work closely with a reputable lender. If you don't have one, your REALTOR® should be able to suggest a few for you to try. Ideally you want someone that understands Hawaii escrow protocol and can offer you competitive rates and terms that fit your budget.
Do: Know your rights
Don't: Assume things are cut and dry
It is very important that you understand your real estate contract and the repercussions of it. Who pays for the inspections? What does Hawaii law state that the Seller must disclose about the property? What are closing costs and who handles what? If I miss a date, what happens? In real estate, a written, mutually accepted document in this business is a legally binding contract. Often times contracts can be confusing, so know what you are responsible for and when before signing. Your REALTOR® should provide you an escrow timeline to make this process more manageable for you.
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