Pamela Swancutt,
Realtor (S)
Ferrari Pacific Realty Corp.
75-6082 Alii Drive, Suite A
Kailua-Kona, Hawaii 96740
(808) 557-4224 Direct
(808) 327-3163 Office
(808) 327-3164 Fax
Toll Free
(888) 828-5662
"I am a resident of Kona and have
been for 4 years.
I felt that the real estate market
was beyond my means but due to the best efforts of Pamela I was able to find a condo that I could afford and that suited all my needs. She also helped me with finding someone to work with for my financing and made the whole transaction of purchasing a home for myself, a first time event
for me, an easy and pleasurable experience."
- Lynn
When I first became a Realtor® I made a decision to never handle more than 5 clients at a time. I did this in order to give you outstanding personal service; to insure that your Hawaii real estate buying experience will be comfortable, relaxed, and free of stress. And as a Buyer, you never pay a fee; the Seller does.
I strive to bring you the most luxurious properties in some of the most desirable locations available. Explore my site to see some of the most beautiful homes and properties in Hawaii , get tips on buying or selling real estate, use our resources, or our tools to help you determine how much home you can afford.
THE PROCESS
1. FIRST MEETING
My first meeting is both an introduction and an interview. If you're buying a home there's a good deal of information about what you have in mind that I need to understand in order to help you accomplish your goal.
I will need to know what you picture when you think about your new home i.e., number of bedrooms, bathrooms, type of floor, surroundings, how much land, how big is the house or condo, 1 story or 2, how long you intend to live here, how old should your new home be, etc. I want to know your long range plans for the property and how skilled you are if you're looking for a "fixer". I want to know how much time you want to spend maintaining your yard or how you feel about hearing your neighbors. Do you mind driving steep hills, how far do you want to commute each day to work or the store or town or the beach. It may sound nosy but the more I know about your needs the better I can locate just the right property for you. What I'm doing is combining your needs with my knowledge to make this as enjoyable as possible.
2. AGENCY
Agency is nothing more than who represents whom. Hawaii state law requires full disclosure of agency in any real estate transaction. Almost all brokerage offices carry listings of properties, which makes them representatives of the seller. Regardless of who in the office has taken a listing, they all belong to the broker and since every agent in the office works under the broker's license, they all represent the seller.
There is a situation titled Limited Dual Agency in which the agent "represents” buyer and seller, a difficult task at best. It's called limited because there is limited representation for both parties. As your agent, part of my responsibility is to find out everything I can about the property you're interested in and report back to you. Anything I can learn you will know which in some cases will help us in putting together an offer.
In a Limited Dual Agency position, the agent cannot reveal anything to you that is not public information nor can they suggest an offer price. All I can do is provide you with the same information the seller has. Limited Dual Agency has been likened to having your attorney represent both you and the other side in court.
As your buyer's agent I have a fiduciary responsibility to you, the buyer, not the seller. When you respond to an advertisement for real estate you are typically responding to the seller's real estate agent (seller's agent) who is working in the seller's best interest. When the transaction is closed, the seller pays both the seller's agent and the buyer's agent. If you are a buyer and you work with the seller's agent, that agent can assist you, but he legally is working for the seller, not you.
By working with me you will have a choice of me working exclusively as your agent or, if we find ourselves in a situation where Hawaii Realty Brokers & Associates is already representing a seller of a property you're interested in, I can recommend another company for you, if you choose.
3. FINANCING
If you are going to use some type of commercial financing there are some things you should know about the loan process. I only touch on the subject because this is an ever-changing market with rates moving each day and new loan packages being offered. What is important is that you know how much you are comfortable spending on your mortgage. In most cases, a person will be qualified for more than they are willing to spend. Knowing all the details of your loan will help you arrive at that figure.
There are costs above and beyond the purchase price that you will have to contend with. For example, recording fees, escrow fees, loan origination fees, points, and sometimes Private Mortgage Insurance (PMI) for those putting down less than 20% of the purchase price. All of these fees are usually wrapped up in the loan package but it means that you will have to come up with more money than just the amount you intend to "put down".
Below I have listed three lenders with offices in Kona. If you intend to work with someone you know on the mainland be certain that they can loan in Hawaii ; not all lenders can do that due to certain legalities and licensing requirements.
The loan is a two-part process; first is qualifying you, the buyer and then the property you're buying. There are loans known as No Verification loans for people with new businesses or seasonal income or other reasons where a tax return may not qualify them for the loan. Usually, a No Verification loan will require considerably more of a down payment, maybe as much as 40%. For a conventional loan, the lender will run a credit check, ask for a couple of years of tax returns, verification of income, etc. This is the longest part of the process. To qualify the property, the lender will order an appraisal. As long as that meets or exceeds the purchase price the property will qualify and the lender then gives Final Loan Approval. Lenders that I have found to be highly knowledgeable are:
Joanne Stubenberg |
Office: 808- 326-3916 |
Mila Orlando |
Toll free: 800-293-2878 |
| Juliette Brossard Senior Loan Officer Capital Mortgage Corporation |
(808) 895-7256 Mobile (808) 329-1008 Fax jbrossard@cmclender.com |
4. SEARCHING
I will do a complete search of the Multiple Listing Service database using your criteria as the search parameters. In addition, I will be contacting other agents to find out if they have "pocket listings" that fit your description. Pocket listings are sellers who may not be ready to list yet but let their agent know they would consider an offer. In some cases, I will contact the owners of similar properties to ask if they have considered selling. Even in a case like this, I do NOT represent the seller; I suggest they get their own agent or choose to represent themselves.
Once I have a list of the properties you’re interested in I will discuss neighborhoods or condo complexes and in most cases physically inspect these areas. I'll discuss any maintenance fees or association fees you may have to consider.
When you’re ready to actually look at property, I'll set showing appointments. In some cases I can get right into a property but usually there is a 24 or sometimes a 48-hour notice to be given by the listing agent. State law does give a tenant up to 48 hours. When the showings are set I'll have a schedule to follow and being on time is important because in many cases people will be expecting us at a certain time. There are some properties where you may want to see more of than time allows; if that's the case then I will either try to move the next showing if I can contact the agent or return to the one of interest later in the day I'll take you back to a property of interest as many times as you feel are necessary to make your decision.
My job during this part is two fold. I’m there to point out those things you may not see, sometimes being the pessimist. I want you to be aware of the negatives as well as the positives. Secondly, I’m there to sometimes remind you of what you originally wanted so as to make sure nothing is missed. In most cases we will find what you’re looking for in a day or two. There are times when we walk into the right property the first day and then there are those times when I’ve worked with clients for several months before all the elements came together and they found their perfect home.
5. MAKING THE OFFER
Once we have found the property you want I have to determine a fair market value and a strategy for your offer. I will find fair market value by looking at similar properties that have sold in the last few months and by looking at current market activity. Once I decide on the value then we can agree on an offer. In some cases, if it is a seller’s market, if you've found what you really want I suggest a full price or very near full price offer. The reason is that a good property will not last long when it's a sellers market; there's a shortage of good property and plenty of buyers looking.
It is of the utmost importance that you remember this; just because you put in an offer doesn't mean you have to buy the house, even if the seller accepts your offer. Putting in an offer and getting it accepted by the seller gets your foot in the door so someone else doesn't get there first. There's nothing worse than finding the right property, thinking about it for a day or two then finding out it went into escrow. I suggest putting down a $4,000 to $6,000 deposit to show your intention to purchase. You may be able to put down less but a sizable deposit makes your offer stronger than a small deposit will. My broker holds that check until I get acceptance by the seller. At that time, it goes to the escrow company.
In your offer to purchase property there is an inspection period titled C-51, which gives a specific amount of time, normally 14 days from acceptance, for you to choose not to proceed with the purchase. You will have your deposit returned and continue looking for another property if you choose.
6. AFTER THE OFFER
A couple of things can happen to the offer is presented to the seller. One, they may accept it as written. Two, they may outright reject the offer. Three, they may counter the offer with one of their own changing the price or one of the other contingencies I may have added, in behalf of your request, at the time we made the offer.
If necessary, I will negotiate with the seller, through their agent, to find a workable agreement. Once that's done and I have an accepted offer, we will open escrow.
7. THE PURCHASE CONTRACT
Hawaii's Purchase Contract is an ever-changing document meant to protect both the buyer and the seller in any real estate transaction. It does this through the use of Contingencies, obligations agreed to by both parties that have to be met in a timely manner in order to complete the purchase.
I'll go over the Purchase Contract in detail when I put together an offer but here I want to highlight a few of the features meant to protect you, the buyer. I mentioned C-51 above; this one is the Inspection clause that allows you to perform a many inspections as you feel necessary on the property.
There are also contingency clauses, C-23 through 25 that protect you should you not be able to acquire your funding as described in the offer. C-35, C-36 & C-37 require that the title be free and clear and transferable to you before you’re committed to buy. On any property with structures I will ask that the seller provide a survey, C-42. We will ask that the setbacks be identified and verified in writing and in compliance with the County of Hawaii. If there are problems with setbacks or encroachments that the seller cannot correct to your satisfaction you may choose not to proceed. C-44 & C-46 require complete disclosure of any knowledge the seller has on the property. You have to accept the disclosure or, again, choose not to proceed.
As mentioned earlier, just because you have an accepted offer doesn't mean you have to buy the property. It's only after all contingencies are satisfied that you are committed to finalize the purchase.
8. HOME INSPECTION
Once I get an accepted offer I formally open escrow (see next section for Escrow), this is done with your deposit check after both you and the Seller are satisfied with the terms of the purchase contract.
One of the first things I will do when buying a house or condo is to order the home inspection. There are three home inspectors that come highly recommended, all are certified as inspectors; Hawaii does not license home inspectors. All three are also licensed builders but none of them will do any of the work that may need to be done since that could possibly be construed as a conflict of interest on their part. The three are:
Michael Woodbury
|
Phone: 808-322-5174 |
Tom Sena
| Phone:(808) 329-5484 |
Chuck Cartwright |
Phone: 808-324-0722 |
Based on the outcome of the inspection, we have three options. First, if you’re not satisfied with the condition of the home you can cancel the offer. If there are problems I can request that the Seller repair all or some of the problems or you can accept it as is. If I request repairs, the Seller can agree to all or some of them; if I don't get a satisfactory response to the request, again, you can cancel the offer. The results of the inspection can reopen negotiations on the offer.
If you’re buying a home rather than a condo, more than likely I'll order a survey of the property. This involves marking all corners on the property and locating all improvements (house, outbuildings, etc.) on the property to insure they are within the setback requirements of the county. If there are problems, I again renegotiate the offer and the same is true if there are problems with the title that can't be rectified.
When buying raw land, instead of a survey I'll normally order a staking, C-41 on the Purchase Contract. This locates the corners of the lot but since there is usually no structures on the land I'm not too worried about encroachments unless it's from a neighbor.
By the time you are committed to proceed with the purchase, you should be satisfied with the condition of the property, the survey and the title so that you know exactly what you’re getting.
9. ESCROW
Escrow is defined as, "...a disinterested third party". Escrow is a neutral party to the transaction. They're the ones that hold the money until all the contingencies of the contract are met by both parties, any liens are cleared, all taxes are paid and any money held for buyers needs is satisfied. When all contingencies have been met they record the transaction with the Bureau of Conveyances, transfer the money due the seller to them and the deed to you.Once escrow is opened, you will receive a set of "Escrow Instructions" in the mail. This will describe more in detail what escrow is doing for you. You'll also receive a description of the types of tenancy available in Hawaii. There are 4 options for holding title here; Joint Tenancy, Tenants in Common, Severalty or Tenants by the Entirety.
Tenants in Severalty is for a single person holding title in their name only. Tenants by the Entirety is for married couples; in this arrangement puts title in the marriage and not directly to either the husband or wife. It's best to talk to your estate planner or attorney to determine which is best in your particular case.
Closing is when the actual change of deed takes place. I will usually try to close on Tuesday through Friday, not on a Monday. The reason is that your loan is "funded" the day before you close. If the loan is funded on Friday to close on Monday, you pay interest on the loan for two days before the property is yours.
10. CLIENTS FOR LIFEMy service doesn't stop just because I closed the sale. I will remain available to answer any questions you may have after the sale or help out in any way I can. In some cases I become friends, in other cases we are just acquaintances but I want to be your Realtor ® forever. Much of my business is built on referrals to friends or relatives looking for property here. I intend to provide exemplary service, the kind you would want for other people you care about so if there is ever anything I can do to improve I want to know about it.
Having you as a client for life means I’m doing my job; if I can do it better we all benefit. Please feel free to contact me for any further information you might need.
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