Crafting our first offer on a home in Hawaii!

[Clifton Monte]

We are about to submit our very first offer on a home here in Hawaii (seller's market on steroids). Since we're using the VA Loan we want to part with as little cash out of pocket as possible, notwithstanding earnest money and closing costs. Today our realtor introduced some parameters of crafting a "competitive" offer to increase our likelihood of getting accepted which could expose us to more out of pocket cash than we'd like.

I trust my realtor, but I still need to ask - can anyone think of any offer stipulations that would be red flags that the realtor cares more about closing the deal more so than getting a good deal for us as buyers?

[Bryan Vukelich]

Hi Clifton,I am realtor as well as an investor on O'ahu.  Are you under contract?  If so, I realize my post is late to the game and wish you the best, but wanted to share a few things and maybe reassure you or give you more clarity of situation in Hawaii and submitting an offer in this market.  

First, yes, market is crazy here as you are aware.  Here is an excerpt from my last newsletter I send last week addressing this crazy market. 

"How do you define insanity? Some say it is doing the same thing over and over and expecting different results. Many would-be buyers are certainly feeling a bit insane as they continue to vie for property in today’s market. In fact, there is a term called “inventory insanity” that is being tossed out quite a bit these days.

Simply put, it is an extreme, unprecedented shortage in the market that is causing otherwise logical buyers and their agents to go a little bit crazy. In some cases, a lot crazy. As a buyer, you want to be competitive. By all means, sharpen your pencil to craft a strong, competitive offer. But, waiving all your rights to secure a property is quite another. In some cases, that is what we are seeing. Buyers are waiving home inspections, termite inspections, surveys, and giving up reasonable asks like cleaning and pet treatment to be competitive. To secure a property. Each situation is unique. Every buyer must decide what to do. And, on the advice of their agent. The point is that the shortage of housing is creating insanity in the market."

With that I'm guessing your realtor might have suggested you waive certain contingencies, or you offer to pay for them yourself.  It really comes down to what you are comfortable with, but if your agent is quality, he/she would have explained each item in detail and answered all your questions so you could determine how to proceed.  

And I'm glad you ignored @Lane Kawaoka post and did what is best for yourself.  And there are real estate agents who put their clients interests ahead of their own and are financially independent.