Among the cases I reviewed, there was a client who misunderstood the term escrow, which is written in the contract, and was confused about when and how to send funds. To put it simply, it is a process where the sale price and documents are safely held by a third party, but because the term is unfamiliar, they found it difficult to determine what they should do at that moment.

Looking at the market in Hawaii Island, where Hilo is located, the recent trends are somewhat different from other areas. The recent median sale price is around $570,000, which is a 5.8% decrease from a year ago, and the price per square foot has also dropped to $445, a 7.5% decline. The index indicating competition intensity is low, scoring 17 out of 100, and it takes an average of 115 days for a house to sell. However, this median price includes high-priced listings from the Kona area mixed with relatively lower-priced listings from Hilo, so when looking solely at Hilo, the actual perceived price is often lower than this. Since the selling period exceeds 100 days, buyers can take their time to compare multiple listings rather than making hasty decisions.

In such a market, the roles of an agent can be summarized as follows: searching for listings, estimating appropriate prices through comparative market analysis, determining offer prices and conditions for negotiation, reviewing the sales contract clause by clause, coordinating home inspection and appraisal schedules, and managing the entire process up to closing. In a slower market, it is important to take advantage of the time available to thoroughly review the contract.

After the 2024 NAR lawsuit settlement, an additional step has been introduced. Buyers must first sign a written buyer agency agreement with their agent before viewing properties. Simply put, this means that the agent's responsibilities and how they will be compensated are documented and agreed upon before starting the process.

Having an agent who can explain terms like escrow, closing, and contingency in Korean can reduce misunderstandings. Through years of working with multiple generations of Korean clients, I have confirmed several times that properly understanding each term contributes to the overall stability of the contract. Insurance conditions unique to Hawaii Island, such as volcanic activity or flood risk areas, may initially feel unfamiliar, but addressing these aspects in advance is a benefit that comes from extensive experience.

In areas like Hilo, where the Korean population is not large, there are limited sources for obtaining school district information. Families considering the school districts for their children or grandchildren should refer to indicators like GreatSchools or Niche, but since school district boundaries change frequently, I recommend checking the assigned school for the specific address before making a purchase. I can also answer questions related to overall living conditions, such as access to Korean markets or religious communities.

For families moving from the mainland, I usually point out that property taxes and insurance conditions in Hawaii may differ from those on the mainland. If someone is newly arriving from Korea and preparing to settle down, they may encounter unfamiliar processes like international remittance, ITIN issuance, and FIRPTA (Foreign Investment in Real Property Tax Act). Having experience dealing with these situations can significantly reduce the anxiety of facing them for the first time. When needed, I can connect clients with trustworthy lawyers, mortgage brokers, or inspectors within the Korean community. In island areas, the number of inspectors or appraisers is generally lower than on the mainland, making it more challenging to schedule appointments, but if the agent has built a trusting relationship, coordinating these schedules becomes much easier.

I believe that having a relationship where you can comfortably ask about unfamiliar terms ultimately leads to a stable home purchase. This article is not investment or legal advice, and I recommend consulting with a professional before entering into any actual contracts.