"How Can We
Help You?"
The Real Estate Client
More Than One Way To Buy A House!(Part 1 of 2)
James Patton, CRS
"Let me tell you a tale about a home buying
couple who wanted to relocate to Oahu from the mainland a few years ago. They had a very
different style than the one that works in Hawaii,
and their story is eternally instructive!"
The Buyer.
Mr. & Mrs. Tom and Julie Lesia lived in Oregon and wished to sell their home and move to Hawaii. Mr. and Mrs. Lesia had about $38,000 for a 10% down payment and closing costs. With less than 20% down, the lender would require mortgage insurance with the policy in favor of the lender.The Seller.
Mr. W. Fishborne lived in a modest windward Oahu 3-bedroom 2-bath single family dwelling on Hula Drive. He decided to sell as a For Sale By Owner and retire in California. He based his asking price on what he could have obtained a few years ago, and added a small discount in consideration of Oahu's current "buyer's market." He felt heavy advertising and open houses would make up for not being accessible to agents in the MLS (Multiple Listing Service of the private trade organization, the National Association Of Realtors), and he put an ad on the Internet. The property was known as overpriced by local agents.The Search.
In early Spring, Mr. Lesia searched the Internet and found what seemed to be a perfect house in Hawaii offered by a Mr. Fishborne at a "discounted price of only $320,000." Mr. & Mrs. Lesia knew Hawaii was expensive, and that housing would take the lion's share of their income. Mr. Fishborne told them he could save them money with no agents. They agreed to not have an agent if, upon personal inspection, it was the right house for them.The Deal.
Mr. Fishborne told the Lesias that a house down the street had just sold for "more" than he was asking, and that his land was larger and his house in better condition. Mr. Fishborne was actually referring to the asking price of that house. He did not know when the house sold and or on what terms. Neither did he know that the house's "sold" price was actually $280,000, more than $40,000 less than he was presenting to the prospective buyer. On his typewriter, Mr. Fishborne wrote up a full price contract for Mr. and Mrs. Lesia to sign. He conceded their wish that he leave the sprinkler system and other fixed items intact. Mr. Fishborne told Mr. and Mrs. Lesia they could avoid the cost of a professional home inspection, since he had "maintained the home so well." He forgot to mention the house was tented two years ago for termites. He did remember to not include a termite report in the contract. As for the house, it showed beautifully. Mr. and Mrs. Lesia were sure they were getting a good deal. However, the Lesias did not have a buyer's agent to alert them to the attractive home across the street. It had gone on the market the day before with Captain Cook & Associates at a "market correct" price and was featured in the MLS.The Result.
Mr. and Mrs. Lesia called home and told their children they would be putting their Oregon home on the market, changing schools, and moving to Hawaii. They returned to the mainland to restructure their affairs, plan the summer move, and sell the house -- a sale on which the move depended. The seller finalized plans to buy a California townhouse pending closing of the sale of his Hula Drive home to the Lesia family. He, too, began restructuring his affairs.The Closing.
There was no closing. Thirty days into the contract, the appraisal came in. At $280,000! (To be continued next month: Part 2)Also Visit: Mrs. Gladfines Relocation Checklist
James Patton, CRSToll Free (800) 997 - 8701
Call Today To Get The Process Started
©2003 Coco Isle Realty
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