Nance Overton, RA, CDPE

In this age of technology, it is only natural that the majority of people looking for homes or property will start that search on the Internet. This is wonderful because buyers are much more informed about the properties they are searching for before they contact an agent. On the other hand, a buyer should always enlist the services of an agent when they are preparing to buy a property.

There are several reasons for "hiring" an agent to assist in the search and purchase of a property. The most important are the following:

•1. A buyer's agent represents the buyer's fiduciary interests. Let's be very clear: a seller's agent represents the seller, not the buyer. He looks out for the seller's interests and will work out the best monetary deal on behalf of the seller. A buyer's agent will look out for the buyer and will negotiate the best deal possible for the buyer.

•2. The buyer's agent has access to all information about all the properties available in the area where the buyer is looking. Generally speaking, most agents are members of a multiple listing service (MLS). This provides them information not always given to the general public sites. This can be very important information when considering a purchase.

•3. There are many conditions and timelines involved in the purchase contract. The buyer's agent understands the purchase contract and will keep track of the buyer's and seller's responsibilities when it comes to the due dates of finances, disclosures, inspections, loan status, etc. Of course, if there are any questions regarding legal ramifications, the buyer is urged to discuss them with a real estate attorney for their own protection.

•4. The buyer's agent is also much more knowledgeable about the area where the buyer is looking. General web sites can't provide the knowledge and expertise of a real estate agent. The website doesn't know that the neighboring property is in shambles or there is a new shopping center going in a mile or so away. After all, anything that affects the property currently or its future resale value is important to know before buying any property.

On the flip side, because the buyer's agent represents the buyer, it is important that s/he instruct his buyer to contact him with any questions about a property or to schedule a showing for the property. The agent should also accompany her client on the showing. As agents, we understand that our clients continue to search the internet and drive around looking for "For Sale" signs; however, once they enlist the services of an agent, it is important to utilize that agent's expertise and access to information. Here on Kauai, most listing (seller's) agents will not show a property to a buyer if they are working with another agent; however, in the off chance they do, information can be passed to the buyer that may not be in their best interest. In my humble opinion, an agent who allows his client to contact other agents and go view properties alone is not fully representing the client.

One final note...a buyer's agent should realize that many people don't know that agency sites (e.g., RE/MAX, Century 21, Coldwell Banker, etc.) are geared to show contact information that only applies to their realtors benefit. For example, if you are on the RE/MAX site, all listings available in the area will pop up, but they will provide RE/MAX contact information for that area, not necessarily the actual listing agent. This is wonderful if the person searching is not working with an agent already. However buyer's agents need to inform their buyers of this fact. I mention this because, just this morning I had two calls from people working with other agents who had searched my company's site and found properties they thought were our listings. Neither of the properties was ours. I told both of them to contact their agents and let them handle the scheduling of a showing with the actual listing agent.

Ciao for now and good luck!!!

As the new year winds its way into existence through the problems left behind by the past years, we all find ourselves trying to have hope of a prosperous year to come. We have a new president coming into office with, what the news commentators term as, a major economic stimulus plan. All we can do is speculate...good or bad? I have heard some refer to the failure of Roosevelt's New Deal and remark that they hope President-Elect Obama heeds to the lessons of the past.

So, will the housing market be saved with this new stimulus plan? Will the consumers become more confident as the year moves forward and credit is finally loosened? Again, we can only speculate.

Here on Kauai, things have been flat. The median price of single family homes has only dropped by a mere .06% over the last year. This is incredible, considering sales have dropped off by a whopping 36%. We look to 2009 as a fairly flat year. We certainly don't expect any major increases. While inventory remains high, sellers are not convinced they need to drop their asking prices dramatically. So, for now, we are playing the wait-and-see game like everyone else.

Now that we know who our next President will be, we wait to see what will happen with the economy. Here on Kauai, the market remains soft. Sales have slowed in the past two years, as has tourism. Last summer's increase in fuel costs spawned a significant drop in tourism throughout the islands, Hopefully, with the decline of gas prices. Tourism will begin to increase.

Overall, the decline in the economy over the past two years has resulted in a 27.75% drop in tourism through August,2008. Real estate prices have dropped by about 5%, according to the Kauai County Economic Statistics. This decline is expected to level off over the next fiscal year. **

In essence, we are looking at a fairly stationary economic future, meaning that housing prices will have to come down to attract buyers. There are, unfortunately, more short sales and foreclosures on the horizon. Keep your eyes open, the next buyer's market is at hand.

**Statistics from Kauai County 2008-09 Kauai Economic Outlook.

As Realtors®, we all want consumers to start buying real estate again. With the market as unstable as it seems now and the mortgage industry staggering from the severity of its own demise, many people are hesitant to spend money on any investments and are busy looking for ways to save their portfolios. Buying real estate is the last thing people are thinking about. However, now is really the time to buy real estate. Why, you ask? Well, here are a few reasons...

1. Interest rates are still at an all time low. The market downswing of the 90's in Hawaii saw interest rates in the high 7's and up, depending on the size of the loans. Loans today can still be acquired starting in the mid 5's and up on 30 year fixed loans -- if your credit rating is high. This is a major savings.
   
2. Waiting for the prices to bottom out is a losing quest...bottomed out prices are only apparent AFTER the prices start to go up again.
   
3. Once the prices do hit the bottom, the interest rates may be higher, so it could, essentially, cost you more money to get that loan for that low-priced home.
   
4. No matter what the market, real estate is always a good investment. Real estate values, like gold and silver, are cyclical. It will always go back up. Admittedly, the hardest bite to swallow is when you've bought when prices have topped out (again, hind sight is 20/20).
   
5. Buying real estate -- especially for cash buyers -- helps get the inventory moving again and allows for values to start drifting upward.

As difficult as it may seem to swallow in the current market, real estate is the best investment you can make, especially when there are so many deals to be had right now. Prices are coming down. Unfortunately, short sales and foreclosures are becoming more prevalent as well -- even here in Hawaii. So there are always opportunities to buy at lower prices than a couple of years ago.

The bottom line is: The longer you wait to buy that piece of property you've always wanted, the harder it may be to get a loan, and the interest rates may bite you along the way. So, either spend the money now and get a great deal that will likely appreciate over the coming years while the cost of the money you borrow is still low, or miss the boat...