How to get a good deal on a house

Let's say the house you're interested in is a house somewhere in Oahu, which is listed for $800k. It's been on the market for 2 months, which is semi long in the current Hawaii real estate market. So you look at the comps and you think you want to buy it for $750k (good luck!). How will you get your offer accepted?

There are several different things you can do to get a good price.

First of all, the price of an offer is only 1 of may parts of a purchase contract. What I try to do is make as many parts of the contract favorable for the seller as we can without taking too much risk.

For example:

• First and foremost, close escrow when the seller wants to. The seller may not want a fast closing, so check first. Maybe they want to close concurrent with a purchase and they need extra time.
• Have a short inspection period, say 7 days. Hawaii contracts average about 10-14. I've seen any many as 21 days.
• Also have a short title report review period, seller's disclosure review period, and condo doc review period.
• Give the loan pre-approval early, maybe even with the contract. Put it in the contract that the final loan approval will be done early.
• Offer to pay for the termite inspection. Usually the seller pays in Hawaii.

Then, once you've written the offer, make friends with the sellers. Find something in common with them. If you see them at the property, make small talk. If they like you, they're more likely to accept a low offer from you.

Next, when you present your very well written offer, send over your loan prequalification and the first page of your credit report (with SSN blacked out) so they can see your credit scores. Then tell the sellers that if they counter offer the price, you'll have to counter offer the other parts of the contract in favor of the buyers.

If the seller is concerned about closing on time or about the loan, or about any of the other parts of escrow, they might give in to the price.

Now - let's turn things around.

What if there are multiple offers and I want to make sure I get the property? Sometimes you're not as concerned with getting a good price as you are about just getting the property. Sometimes you want to make sure you're the highest bidder.

When there are multiple offers on a property, I want to be the last offer in. I'll ask the seller how many offers they're getting, and when they will present the offers to the seller. A lot of times the sellers of Hawaii real estaste are off island which makes it difficult for the agent to meet with the seller. So it's important ask very clearly, "What is the latest I can get you the offer?"

Then before I send my offer in, I'll bluntly explain to the what our offer is, and ask "Is this offer going to be the best offer?"

If they say no, I may have to revise the offer in some way, depending on what information the listing agent gives me, and what the buyer is willing to do.

In each circumstance, you have to be aware of what the seller's mindset is, and make sure that you know all the facts. Getting information from the seller will help you to get the best deal you can get.