Developer’s agent or your agent August 8, 2008
Posted by brobinson in : For buyers, Mauna Kea Resort, Mauna Lani Resort, RE Market, Waikoloa Beach Resort , trackbackPerhaps you are reading this blog because you are sitting on the Mainland doing your homework in advance of a trip to the Big Island. Most of our prospective buyers do begin their search on-line, around the same time as they book their flights! After all, you want to spend most of your time enjoying your vacation and be efficient in your property search. However, if your preference in a resort home or condo is for new construction, finding out what’s available can take some digging.
First, some developers choose not to list their available inventory in the MLS (in this case, here on AlohaLiving.com). For example, you saw a beautiful ad for Ke Kailani or Halii Kai in an in-flight magazine but you can’t seem to come up with any developer listings. That’s because those developers, although they always welcome us when we walk through the door with a qualified client, would prefer to sell through their on-site sales staff. This arrangement is advantageous to them for several reasons. They save on commissions, and more importantly, it puts all the power of information and negotiation in the seller’s hands. You won’t necessarily know if there is something on the resale market that is competitive with what they are showing you. Their agent will try to give you their best deal, but can only offer what the developer has authorized them to–and sometimes their bosses are actually willing to accept a much more aggressive offer if it happens to be presented. Cash buyer, quick close? In this market you can pretty much write your own ticket, but you might not get that impression talking with the developer’s agent.
Other developers take a different approach. They believe in casting a wider net by listing in the MLS, even though they have an on-site sales office. Sometimes the agents work exclusively for that developer, and other times the developer will work with one or more real estate agencies to list their inventory. In any case, you as a buyer are allowed to work with an outside agent.
At both types of properties, if you choose to be represented by another agent, the developer may require that agent to “register” you in advance of your visit, or to accompany you to the property on your first visit, or both. If you happen to be in the neighborhood and just drop in, you should make it clear to the sales staff that you are already working with another agent if that happens to be the case. Again, with sales fewer and farther between, the developer is likely to want to accommodate you AND your agent, who might also be the source of their next deal.
With all of that as background, here’s my scoop for the week.
It is not uncommon to see listings be withdrawn or expire, and shortly thereafter reappear with a new listing agent. It happens all the time, for many reasons, and not necessarily because the previous agent didn’t do their job (especially true in this market). In today’s market, often a new agent with a fresh perspective is actually able to convince a seller to be more realistic in pricing, and although sometimes the listing comes back on the market at the previous price, in most cases the new price is lower.
I was surprised to see listings be withdrawn from the market recently at two developments: at the Mauna Kea Resort project called Wai’ula’ula and at the Mauna Lani project Ka Milo. The Ka Milo listings have not yet reappeared, but I spoke with the developer’s sales staff who told me that the developer has decided to broaden their advertising reach (and perhaps their cachet?) by co-listing with an outside real estate agency known for its high-end business.
At Wai’ula’ula first a trickle and then a downpour of listings moved to a new agency. During the trickle phase I called a buddy of mine whose name appeared in the new listing. Yup, a shake-up to light a fire under the sales effort there. Good news for you as a buyer, right? Developer must be hungry!
Not so fast. I just picked out a random listing and looked up the history (something you can’t do with the public version of the MLS). Yup–it’s back on the market at a price $200,000 ABOVE the price at which it was withdrawn. Now maybe the developer figures that with the hotel about to reopen, the real estate market at the Mauna Kea Resort is about to heat up. I sure hope so, because our office already represented buyers on two purchases there so far this year and we’d love to have more. But the moral of the story is, even in a buyer’s market, it pays to work with a knowledgeable, ethical buyer’s representative.
A hui hou!
beth@hawaiipalmproperties.com
Cell: 808-443-4588
Hawaii Palm Properties, Inc
Office in downtown Hawi near Bamboo restaurant
www.hawaiipalmproperties.com
Comments»
I found your blog on MSN Search. Nice writing. I will check back to read more.
Eric Hundin