Buying a home on a tropical island paradise can be a bit more expensive than many of us can afford. For this reason we look for homes that have been foreclosed on in order to get a good deal that might be a once in a lifetime opportunity. Keep in mind that almost anywhere in the Hawaiian Islands is prime real estate which means that the asking price is going to be higher than it would in many mainland locations, so finding a foreclosure house in Kaneohe might just be a dream come true.
The Problem with Auctions
Before looking at foreclosure properties listed to be auctioned, it is wise to understand that it is not always as easy as it seems. There are a number of things you will need to know before you should participate in an auction and one of those things is how to line up financing. Unless you have sufficient money to pay cash for the property you intend to bid on, you will need to have an accurate value of the home. Pre-auction financing is a bit trickier than financing on a home which has been inspected by an appraiser approved by the lender.
Foreclosure Homes Listed with Realtors
One aspect of buying a foreclosure property in Kaneohe or Kaneohe Bay that is listed with a realtor which is confusing to many people is that it isn’t always necessary to deal directly with the Seller’s Broker. If you have a real estate agent you are comfortable working with then that realtor can represent you as the Buyer’s Broker. Usually the commission is paid by the seller and if there are two brokerages involved in a transaction they split the commission based on a broker agreement between the two brokerages. This means that using your own agent will not cost you any more money but you have the security of knowing you are working with a broker who has a fiduciary duty to represent you in the transaction. This means, in laymen’s terms, your agent is working on your behalf and for your interests only.
The Advantages of Buying Bank Owned Foreclosures
As mentioned above, buying properties which are being auctioned can be a real ordeal if you have never purchased a property at auction before. When buying a bank owned foreclosure you can easily have your Broker submit a letter of intent or a purchase agreement for the bank to approve or counter with another offer. Sometimes prices are negotiable as the bank is mainly looking to reclaim their investment with perhaps a small profit margin. Your agent will know what the comparables are in the neighborhood of Kaneohe and would be able to help you decide on the price you would like to offer. There are benefits to having a Broker represent you as the Buyer’s agent.
One of the real perks to finding a foreclosure property in Kaneohe is that these homes are already much more reasonable than those on the Leeward side of Oahu. Buying them under foreclosure can even serve to lower an already reasonable price even more simply because the lender is primarily interested in reclaiming their investment. Where properties (even foreclosures!) in Waikiki and Kahala may be more than you can afford, foreclosures in Kaneohe can make your island paradise dreams come true.