Second BIG First Time Homebuyer Mistake

#2  Not getting your own agent and committing to them. Preferably one that primarily represents buyers  or has been accredited as a Buyer's Agent.

There are two or three subtopics here.  First is the buyer who thinks they'll save money by just walking into the listing they are interested in and talking to the agent there to make an offer.  That agent represents the Seller.  Without getting too much into agency, the listing agreement signed by the Seller is with the Brokerage, so the listing agent and any other agent in that brokerage owes their fiduciary duty and full loyalty to the seller - it's called being a client.

The minute the agent says they will help you write an offer on that house or anything to do with that house, you are now in a dual agency situation - you are now a customer and so is the seller and the agent can only process the offer for you and present it to the listing agent and the listing agent can present it to the seller.  No negotiation - no advice.  She can answer your questions regarding the market, like homes and such, but only if you know the right questions to ask.

You have given away the best reasons for having an agent represent you, the knowledge and skill needed to get the sale from offer to closing, protecting your interests above all others. Especially if you are new to the Islands; how do you know what to offer?  The listing price?  What is the neighborhood like, what's the resale value, what are the trends?  What are the best forms and how to fill them out - what are the contingencies, liabilities, and processes?

This also answers the buyer who wants to buy a home without an agent - even if the seller is selling without one - now you've got double jeopardy and somewhere in here, very expensive (and in Hawaii, usually not part of the residential real estate transaction) lawyers will need to be consulted in areas where they are not experts - writing up a contract is the simplist thing the agent does for you.And what escrow company are you going to use? Home Inspector? Termite Company?  Where do you get Condo Docs? Subdivision Docs?  Building permit packages?

Don't get me started on the rant of data vs. information.  Of course, all the data and charts are on the internet and you can gather all that data yourself. You can get it right off our own website, even comparison data from the house you are viewing.   But do you have the knowledge and experience to turn that data into information on which you can base an informed decision?

And you don't save any money.  The seller pays the agents' commissions based on the listing agreement with the seller's agent's brokerage and the seller decides how much of that commission shall be offered to the buyer's agent for cooperating in the sale by managing the buyer half of the transaction.  If you came in without an agent at all, the Seller may still have to pay the full commission to the Seller's agent - would you trust that agent to protect you?  The only buyer that has to pay any commission is the buyer who picked an agent to represent them who states that they expect the buyer to make up the difference between what the seller is offering and what the Buyer's agent expects to receive.  But you did your research and picked the agent that will best protect you and meet your needs didn't you?

The agent that mostly represents buyers is what you are looking for.  They have all the information and expertise from the buyers perspective. If you are using several agents and going with the one who finds the house , you are doing yourself another disservice. Using an agent that is not a Realtor ( a member of the National and local Board of Realtors) can also be a disadvantage.

All Realtors have the same information on each island in Hawaii.  We are all subject to the same rules and we all have the same market information and access to properties currently listed.  What you should be looking for is the agent that best can represent you, listens to your needs and wants, and then has the experience to advise you on the best solutions.  Even if a friend is recommending an agent to you, this is a business deal not an introduction to your new BFF; get references, interview the agent, see if you have rapport with the agent and if they fit your style.  And then commit to them, so they can work for you.  See the #1 Mistake, and after you get pre-approved with a local lender and sign my Buyer's Representation Form committing to our exceptional services, I'll get busy finding and helping to secure your piece of paradise like these in Aiea, Diamond Head, Ewa Beach, Haleiwa, Hauula, Hawaii Kai,Honolulu, Kaaawa, Kahuku, Kailua, Kaneohe, Kapolei, Laie, Lanikai, Mililani, Pearl City, Wahiawa, Waialae Iki, Waialua, Waianae, Waikiki, Waimanalo, Waipahu.