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MAUI HAWAII BUYERS GUIDE
Defining What You Want
Start by creating a prioritized list of features you want in your next home and the reasons why. Use it as your search guide, but remember that depending on your funding, you will probably need to make some compromises. In addition, talk to your real estate professional about where you want to live. Location is a huge part of any move. Brad Hill of Coldwell Banker Pacific Properties is trained to help his clients narrow down their choices by sharing market trends and local information.
Figuring Out What Your Can Afford
Now that you know what you want, it's time to see what you can afford. You can start by crunching the numbers yourself using our selection of calculators.
When you're ready to move to the next step, you can get pre-approved for a mortgage. This process can often be performed in under an hour and it accomplishes two important goals. First, it will tell you how much house you can afford and what your monthly payments would be. Second, it tells the seller that you can afford to buy their home.
By definition, a pre-approved buyer has an approved mortgage subject to an appraisal of the property. Many times a buyer can use this pre-approved status as leverage during the negotiation process.
Shopping for Homes
Once you know what community you'd like to live in and have an idea of how much house you can afford, its time to start checking out actual properties. Beginning this search online can help save you time since it can help you target homes that meet your search criteria. Both the Maui & Oahu MLS systems can email you when properties come on the market that meet your search criteria. Just email Brad.
Next, begin visiting homes in person. Ask Brad to arrange visits and attend open houses that are in your target area and price range. When comparing homes, make sure to look at all aspects of the property. Is the property tax approximately the same? Are both the houses renovated? Do they both have the same amount of bedrooms and bathrooms? Are both houses located on the same or similar streets? Does either house have any encumbrances?
Remember to keep an open mind when you are looking at homes. Use a virtual home planner to help you imagine what the house could become with you as the owner.
Making an Offer
Once you find the home you want, you need to make an offer for the house. Typically this is a very difficult and trying time since both parties have totally different goals. In most cases it is better to have a third party, such as a real estate professional, negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.
This might also be a good time to consider purchasing a home protection plan. These insurance policies can be purchased by the buyer or seller and help protect against unexpected costs or home repairs during the listing period or in the initial years after a home has been purchased.
Inspections and Insurance
After your offer is accepted you will need to set up, coordinate and interpret various inspections, including insect, building quality, title, etc. You will also need to arrange for homeowners insurance and finalize the mortgage.
This is a major step in the buying process and there are many potential problems that can be discovered during this period. These include a leaky roof, radon gas, termite damage, a foundation problem, and wall cracks, to name a few. These problems happen all the time. The difference between closing on your dream home and starting the process all over again is what occurs during the negotiations between you and the seller.
Brad Hill can help make these discussions go more smoothly. In most states you will also have the option of a "walk through" before the closing. This is your last chance to make sure that all of the items that you have agreed upon were completed to your satisfaction.
The Final Closing
Before you arrive at the closing, make sure all the necessary paper work and deposits have been completed. If the mortgage, title work, homeowners insurance and other items necessary under local and state laws are not completed and brought to the closing table, the closing may not happen on time. And, depending on what the contract says, this could result in further action including financial penalties and even the loss of your rights to the home.
Once you close, it's official - you own the house! But there might be a few things you want to do before you lay out the welcome mat. These include arranging for an alarm system, turning on the electricity, subscribing to the local paper, cleaning or replacing the carpet, arranging for lawn services, etc. This could also be a good time to make some needed renovations.
What is the first step to buying a home?
Answer: Make sure you are ready - psychologically and financially. Ask yourself the following questions: Do I have steady income? Is my debt lower than my total income? Do I have enough money to pay for the down payment and closing costs? Am I working hard enough to improve bad credit? A house needs constant care and attention. Also ask yourself if your budget will allow for unexpected repairs and upkeep. Once you can honestly answer "yes" to these questions, you are several steps ahead of the game and that much closer to becoming a homeowner.
What are some negotiating tips?
Answer: Know the seller's motivation to sell. This will enhance your negotiating position. Sellers who must move quickly due to a job transfer, divorce, or contract on another home, are more inclined to accept a lower price to speed the process along.
Remember, too, that the listing, or asking, price is what the seller would like to receive for the home. It is not necessarily what the seller will settle for. So know value. Before you make an offer, check recent sales and listing prices of comparable neighborhood homes and compare them to the seller's asking price. Other tips:
Be flexible. Never say, take it or leave it. That can sour negotiations and ruin the deal. Never show your hand or reveal your next step. Each time you increase your offering price; ask for something in return, such as repairs, appliances, even lawn furniture. If you plan to pay cash or have a tentative commitment for a loan, use your strong financial position as a negotiating tool. Don't let emotions such as pride, fear, love, and anger get in the way of negotiating the best deal. Leave irrational feelings at home.
What contingencies should be put in an offer?
Answer: When you look to purchase a home, anticipate potential problems. But protect against them so that if something does go wrong, you can cancel the contract without penalty. This is what contingencies allow you to do. They should be included in any offer you present to buy a home.
Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on your ability to obtain a loan commitment from a lender, and an inspection contingency, which allows you to have a professional inspect the property. Without contingencies, a buyer could forfeit his deposit under certain circumstances if he backs out of a deal. The purchase contract also should include the seller's responsibilities, such as passing clear title, maintaining the property in its present condition until closing, and making any agreed-upon repairs.
Is it possible to buy a home below market price?
Answer: Certainly, but do not hold your breath. It takes a lot of determination and time to find a real bargain. But if you are adamant, here are some likely targets to pursue:
• foreclosed property
• a fixer-upper
• hard-to-sell new homes in a housing development
• tenant-in-common partnerships.
With the latter, you may be able to buy a partial interest in this form of title to property owned by two or more individuals because the partners often sell at a discount. However, bargains are easier to come by in a soft real estate market, when the economy is in a recession, and when homeowners, and builders and sponsors of condominium conversions, are desperate to move unsold units. | 
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Brad Hill
Coldwell Banker Island Properties
Wailea Town Center
161 Wailea Ike Place, Suite A-104
Wailea, Maui, Hawaii 96753
808.250.9264: Cell
877.947.6284: Office
866.706.6807: Fax
Email: brad@WaileaBeachRealty.com
Brad Hill has been an active licensed Realtor in the state of Hawaii since 2002, both on the islands of Maui and Oahu. He is a full time Realtor with the Coldwell Banker Island Properties office located at the Wailea Town Center in South Maui, Hawaii. He holds the real estate designations of Certified Residential Specialist, Graduate Realtors Institute, Accredited Buyers Representative and e-PRO. He is an active member of the National Association of Realtors, Hawaii Association of Realtors, Realtors Association of Maui and the Hawaii Aloha Chapter of CRS. The Brad Hill Team specializes in South Maui Real Estate in the Maui communities of Wailea, Makena, Kihei and Maui Meadows, Hawaii.
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