Kauai REO Buying Tip; Why do I need a buyers agent?

Getting the best price is the number one goal of foreclosure buyers.  First, let’s address one of the biggest myths of real estate -

“If I work with the listing agent, I’ll be able to get a lower price.”

Although not unique to buying REO’s, the risks involved in this approach magnify exponentially with buying a bank-owned foreclosure.  The listing agent in all transactions represents the seller.  Even if you agree to a dual agency representation, the agent is legally obligated to protect the seller’s best interest.  Think about ‘War of the Roses’ – if you were going through a divorce, would you want the same attorney?

Okay, now that we’ve had our movie minute – let’s get back to the Kauai foreclosure market. When a bank-owned foreclosure is listed, there is no sellers disclosure.  It’s an “As-Is” purchase.  In addition, lenders use their own contract drafted by teams of lawyers to protect them from liabilities.  Who’s representing you?

As a buyer, how are you going to find out what you need to know about the property?  Your buyers agent needs to be part realtor, part detective on your behalf.

For instance, this new luxury foreclosure listing was released this week – located in Kalihiwai Ridge area of Kauai’s north shore;

From viewing the listing would you know that the property was vacant while unfinished for over a year?  Is that a concern, maybe – maybe not.  But it’s definitely information that you as a buyer should know.

Here’s a video walk-through of the property prior to the completion of the finishing details mentioned in the listing – while it was marketed as a short sale.

Working with our foreclosure buyers, we not only investigate the property through the normal channels, such as County Planning Department, previous listing details, Public Health records for the septic system, etc – but through our personal network with local builders, contractors and agents we often find the property’s untold story for you.

Now that’s some power for negotiating….as well as important protection for you.

For more information or to request a showing, please feel free to contact us at any time.

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About Susanna "Susie" Kunkel, RA

With a belief that life is too short to not follow your dreams, Susie and her daughter became new Kauai residents in less than 4 months after visiting for the first time in 2000. She brings a wealth of information from her background in administrative, contract and paralegal work in a variety of industries including technology, investment banking, biotech and estate planning. As a Realtor, Susies's tenacious and technical approach have earned her a large group of extremely loyal clients. Susanna is a steadfast believer in "The Golden Rule", and applies it to her approach as a Realtor. "Each client and each property are unique, so it's important to me to listen intently to what my clients' goals are, and to make sure I go above and beyond to help meet them."
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3 Responses to Kauai REO Buying Tip; Why do I need a buyers agent?

  1. Pingback: Kalihiwai Ridge Mountain View REO on 2 Acres « Blog Archive « Kauai Luxury Foreclosure Gallery

  2. You make some great points, thanks for sharing. There are some great opportunities out there for buyers in today’s market. However, not all REO properties are automatically great deals or “steals”. Buying a home is generally one of the largest financial decisions a person will ever make. Put a “buyer’s agent” to work and have the benefit of an experienced professional on your side. In Charleston SC, I regularly receive calls from buyers interested in putting an offer in on a “bank owned” or REO property. Even the seasoned investor should find a “buyer’s agent” that will look out for their best interests and guide them through the process. A “buyer’s agent serves as a buyer’s advocate, advisor, negotiator and confidante throughout the buying process.

    • Susie Kunkel says:

      Thanks Dan. Couldn’t agree more. The first thing I do working with a buyer focused on foreclosures, is try to step back a few feet and understand their goals and objectives. The best fit for them…and the best value…may just be a motivated seller. How is the market in SC?

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