[ BUYING AND SELLING A HOME ]
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Buyers often
need to sell
A family wanting a bigger home must
get their old house in shape for inspection
Realtor Ira Gordon had been working with a six-member Kapolei family for two years to find them a larger home. The catch, though, was that they first needed to get their house suitable to sell.
Easier said than done, it turned out, because the primary wage earner, Francis Marlang, worked three jobs and had little time for home improvement.
"I went through the house with him and said, 'These are the things you should do,'" said Gordon, principal broker of Honolulu-based Aloha Homes. "The main one was painting, and the flooring needed to be jazzed up a bit. But then he didn't have time to do the kitchen and bathroom cabinets and counters, and that was a negative."
Gordon said the cosmetic face lift on the three-bedroom, three-bath, 1,200-square-foot home went on for about a year and a half. In the meantime, he said the state's booming real estate market boosted the house's market value from $250,000 when Gordon initially inspected it to about $379,000 when it was listed.
"We were the lowest price in Kapolei," Gordon said. "I sold it three times. The first two interested buyers dropped out after inspections. They thought it was too much work. But then the third one was comfortable with doing the upgrading. We sold it for $349,000 in June and (Marlang) simultaneously closed on the purchase of a larger home in Waipahu for $398,000."
The new house has five bedrooms, two baths, 1,600 square feet and a 6,500-square-foot lot that is about 50 percent larger than the family's previous one.
When it comes to buying a house, Gordon said price and location are obviously the main concern. But aside from that, he said, the number of bedrooms, baths, size and condition are also critical.
"Most people say location is the No. 1 thing, but location affects the prices and, in this market, people have to compromise and they need to balance their needs with what they can afford."
Gordon said obtaining a good Realtor is important for a prospective buyer because he said that homes advertised in the newspaper represent just a fraction of what is available.
He said the most desirable homes advertised in weekly and monthly publications usually are sold by the time they appear in print. And homes on Realtor.com don't indicate whether a property is in escrow or not, Gordon added.
"There's a lot of things involved in buying a property and it doesn't cost a buyer anything to work with a Realtor because the Realtor gets paid from the seller's commission," Gordon said.
He offered an example of two mainland buyers, Douglas Stewart and Alan Carrell, who wanted to purchase a house with a view on Wilhelmina Rise in upper Kaimuki. They signed a contract to buy the three-story house, then heavy rains came and flooded each of the levels. Insurance money took care of the repairs, but other problems developed.
"Most people would have backed out of it and the owner, Douglas Stewart, was seriously thinking about it," Gordon said. "But I told him we could fix these things up and still be ahead of the game. So he went ahead with it and he's very happy.
* The Honolulu Metropolitan Statisical Area consists of the City and County of Honolulu** Revised dataset
*** Rate for all U.S. inside metropolitan areas. Data for 1993 and 1994 are based on 1980 metropolitan/nonmetropolitan definitions, while 1995 and later data are based on 1990 metropolitan/ nonmetropolitan definitions.
Tips for the home front
Buying tips
>> Get a good Realtor. A Realtor won't cost a buyer anything and likely will be more knowledgeable about houses for sale in the market. Once a house is purchased, the Realtor can check and correct any problems to make sure escrow is proceeding smoothly.>> Don't be put off by cosmetics. If there's no structural damage, don't worry about painting, carpeting or other smaller changes that need to be done to the house.
>> Keep your purchase offer simple. If you want to beat another offer, the more complicated the contract, the less likely it will be accepted. For example, don't put in the contract that a dripping faucet needs to be fixed.
>> Get pre-qualified. Work with a lender to find out what house price you qualify for and what type of financing is available. Properties are being snapped up so fast that a seller won't want to waste time with someone who isn't pre-qualified. Also, have your credit checked so it doesn't hold up or impede a purchase. Be ready to act quickly on a property that you like.
Selling tips
>> Expose the property as much as possible. The more people who see the house, the more competition you'll get for an offer. Use a Realtor, multiple listing service and make the house easily showable. Allow short notice for showings and have a lock box.>> Curb appeal. The landscape appearance from the street makes a big difference and can help get a buyer into the house. A mowed lawn, trimmed trees and fresh paint can go a long way.
>> Avoid clutter. Don't leave items, such as bicycles, children's toys and gardening equipment, lying around outside the house. Also, put away items inside the house to make the interior look spacious and inviting. Eliminate odor so the house smells nice.
>> Make necessary repairs. Buyers may be turned off by a home that has too many things wrong with it. Fix leaks or other plumbing problems, as well as electrical deficiencies. Paint and flooring are the best repairs.
>> Get a good Realtor. A Realtor knows what type of repairs or changes need to be done to make a house appealing to a buyer. A Realtor also is most familiar with the marketplace and can price the house to generate the best offer and handle the negotiations to protect your interest.
