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Yes, we live in one of the nicest, most desirable places in the world. Gorgeous views, perfect weather, kind and loving people. Was there ever any mention of our real estate market?

As the mid-2000’s came and home ownership became as easy as buying beer when you are only 18-years old, Hawaii residents followed suit. Snapping up homes that were well over their normal affordability potential. We even saw people refinancing the equity out of their homes for disposable purchases.

Now, the nation, let alone Hawaii, is feeling the pain from it’s actions. Those that are trying to sell their properties are finding that they owe more on their mortgage than the property is currently worth in this market. If the property does sell, it is taking a minimum of 6 months on the market before cautious buyers finally pull the trigger. Not to mention, even if there were plenty of buyers lining up to buy a property, with the state of the financial crisis at hand, only about 15% of Hawaii residents can actually get approved for traditional financing. It appears the parade has ended and the fat lady is singing.

The real question is, what is the best way to sell our Hawaii house in the current market, with a Realtor right? The answer is usually NO. 99% of Hawaii Realtors lack the creativity to get the job done right. Most are one dimensional thinkers and are not interested in the home owners best interest. Most just list a property and continue to tell the home owner to keep dropping the price hoping it sells.

Sometimes home owners actually owe more on their property than it is currently worth. In order to sell the property, the home owner will have to pay the difference at the close. Who wants to do that?

In many situations, a short sale may be the best option. This is where a new buyer offers less on the property that what is currently owed and the lender actually agrees to this discounted price.

There are many other potential solutions that exist, including deed in lieu of foreclosure. However, doing this will cause your personal credit score to drop. You will definitely want to avoid Realtors at all costs while looking at these solutions as their typically do not act in your best interest.

Hands down the best strategy in this market for most of Hawaii residents is to offer owner financing for new buyers. Here is how this works, say, for numbers sake that John is asking $100,000 for his house. He owes $90,000 to his current lender, and unfortunately an offer comes in for his property at $80,000 since that is what the property is actually worth in this market. The new buyer may not be able to get a new loan or if they can, it will be for a maximum of 80% of the value of the property.

For example, a mortgage take over program might be an option. This is where a new buyer can come in and actually begin making the monthly mortgage payments. This would immediately alleviate the pressure from the home owner and slide a new buyer into the property at the same time, thus creating a win-win situation. Again, please consult a professional company like IBuyHousesHawaii.com before making any decisions.

Hawaii has been hit hard with price drops in our valuable real estate market. Sometimes home owners can afford to wait the 6 months or more to sell their property, and sometimes it is best to seek alternative methods other than local Realtors insisting that they simply continue to drop the asking price of their home. Be smart, before you get locked in with a Hawaii Realtor, explore other options like a IBuyHousesHawaii.com that knows exactly what it takes to get your property sold, sometimes in less than just seven days. Do what I did, and look into it while there are options.

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