There are many reasons you may be selling your home. It could be a change of job, children having grandchildren, or the need to free up cash for the short term
Why are you considering selling your Haiku Home?
There are many reasons you may be selling your home. It could be a change of job, children having grandchildren, or the need to free up cash for the short term. Whatever it may be, you need to know the facts and helpful steps to getting your home sold in the time frame that suits your specific situation.
Haiku Maui Buyers
It can be hard to remember what it was like when you purchased a home. I can assure you that being on the buying end has just as many emotions and anxieties attached to a sale as the selling side. I always tell the seller to be ready for questions, have your home in tip-top shape, and give the buyer little to no reason for second-guessing the condition of your home. Haiku has beautiful landscapes and vegetation, with that comes varying weather, make sure that weathering doesn't show on your home. In the best case scenario, you can have an inspection, inspection report, and repairs done prior to listing. If for any reason there is something that will not be repaired (not seeing the return on investment or not enough cash funds to make the repair) then we have the information up front, and working with it from step one seems less intimidating. In a nutshell, identify the target market for your home and present it so it attracts that buyer.
Understanding Your Haiku Maui Home
I'm not talking the location of light switches when its dark and you're fumbling to the bathroom, I mean know what's really there. On countless occasions, we have to be the bad guy and let sellers know that half of their house is not permitted. Even in that instance, it's not the end of the world, but knowing what we have to deal with upfront can save heartache at the end of a transaction.
What I start with:
- Zoning and Flood Confirmation Form. Haiku has a multitude of zoning possibilities (agricultural, substandard agricultural, residential, etc.)
- A physical visit to the home to see what is on site.
- A look through multiple county sites to cross-reference permits and plans.
- Do you have a cesspool or septic?
Another portion of knowing your home is knowing the highest and best use of each scenario (zoning, number of lots being sold, dwellings on the lot, etc). It's important to stay up to date on state and county law to really maximize your possibilities.
Haiku Maui Sales Statistics
1. How many months of inventory are on the market?
Months of inventory shows you exactly how saturated the market is. It essentially tells you that if no new homes were to come onto the market it would take x many months to sell every house within that data group. The higher the number the more homes are sitting on the market, this is a great indicator of how aggressive you need to be.
2. Percentage of list vs sold price.
This statistic is important when receiving offers and negotiating. It's also good to know that this stat can be skewed. The data is gathered from the most recent list price, not the original list price. A seller, over the life of having their home on the market can lower the list price as much as they wish. When reading this statistic know that the sold vs list percentage is actually much lower. At any rate, this statistic still has value showing any owner looking to sell that although there are scenarios where you do get full price, it's not guaranteed. So consider this when you initially list your home.
3. Days on market.
Lower listing prices bring a larger pool of buyers, which translates to fewer Days On Market. This is due to more competition within the larger buyer pool (lower price point), you have first time home buyers, investors, people downsizing, etc. The added competition creates a feeding frenzy and if priced/marketed correctly means competing offers. If you're feeling antsy as a seller just remember to look at this statistic and take a deep breath, going beyond the average days on market is very common. Weather, current events and the economy change overnight, so does the real estate market. If you want to sell within the normal time frame go within the average adjusted price when determining value. If you want to sell faster, then go on the low end. If time is not of the essence, and you're are wanting to test the market, then go above the adjusted average value for your home. If you would like to know more about how we determine home values, give us a call.
Our Team Sells Many Haiku Maui Properties
I say, team because I am a true believer in knowing your imperfections. You want people to work alongside you that can cover your weaknesses and shine in areas they enjoy and excel in. Our team, "The Stice Team" has over 45 years of Maui real estate experience and a multitude of skill sets. Whoever you choose to represent your home, must know the market, know the buyer, be able to reach that buyer, and facilitate a sale with the least amount of stress and setbacks. See what our clients have to say about us.
Is Running a Bed And Breakfast on Maui Your Dream?
One of the most common questions we field as a Maui Realtor is, "how can I buy a bed and breakfast?", the only correct answer is, "you can't." You can, however, look for a property that is the most prepared to pass county regulations on a Bed and Breakfast. Being that 160 Nahele was a licensed B&B for 9 years (link to the rental site with 59 reviews), it's as good of a start as you can get, I'll explain why.
What is a B&B?
According to Maui County: "The new legislation adopted by the County Council on December 19, 2008 and signed into law by Mayor Tavares defines a “bed and breakfast home” as a use in which overnight accommodations are provided to guests for compensation for periods of less than 180 days, in no more than two detached single-family dwelling units, one of which is occupied by the owner-proprietor."
Typically, B&B's on Maui's North Shore would be a house and cottage. The best case scenario would be a lot of more than 2 acres, but less than 5. With 2 acres your cottage can be as large as 1,000 sqft, and under 5 acres you can avoid having to show revenue from ag. The larger cottage is key being that the owner of the residence will need to reside on the property and be a full-time Maui resident (recently changed from 180 days to 270 days). 160 Nahele has a beautiful house and cottage that are extremely private from one another, they feel like two separate lots.
Pool Area At The Main House
A Few Key Steps/Facts To Obtaining Your B&B License
1. Find the right house
2. If the subject property is zoned agricultural you will need to have an implemented farm plan (link to Farm Plan Application). If the subject parcel is more than 5 acres then you will need to show an annual gross farm income of $35,000 for the previous two years. 160 Nahele is a great example of being under the 5-acre mark at 4.22 acres and having a fully implemented farm plan.
3. There is a cap on how many B&B's can be in each district. Here is the break down:
Hana: 48 Kihei-Makena: 100 Makawao-Pukulani-Kula: 40 Paia-Haiku: 88 Wailuku-Kahului: 36 West Maui: 88
Currently, the Maui Planning Commission is in the process of changing the code so that the Paia-Haiku Community Plan and the Short Term Rental Home Ordinance in Chapter 19 are not in conflict any longer. If you would like to discuss this further shoot me an email (contact info at the bottom of the article).
4. You'll need to post a 16 sqft notice to neighbor sign within 5 feet of your property entrance. The sign must be placed 5 days prior to applying and must remain there through the entire application process.
5. Only six bedrooms or less can be designated for rent in the B&B. 160 Nahele has four bedrooms, 3 baths in the main home or you could designate the two bedrooms, two bathrooms in the cottage.
Main Home and Pool
6. At least one onsite visit from the county will be necessary, this is probably the biggest hurdle. The county will be looking for discrepancies between what is permitted and what is actually on the property, very rarely are homes in complete compliance. This is another huge benefit of 160 Nahele having gone through the process of being in full compliance.
7. You will need to notify all neighbors of record within 500 feet that you are applying for a B&B. They will have the opportunity to have written protest, and if 30% or more of them do protest, then additional steps with the planning commission will have to take place.
There are many more steps to obtaining your license. To see the full process take a look at the application here.
Want more on 160 Nahele?
If you cannot tell already, I am a big fan of this listing. You can read more about it here or reach out directly to me.
Finding the right home takes local market knowledge and experience, let The Stice Team's 45 years of Maui real estate expertise go to work for you. Give me a call or shoot me an email, we can talk about your Maui dream home.
Tim Stice Realtor/Broker
This is a followup to a previous blog I did that talked about the differences between cesspools and septic systems and their use within Maui County. What follows are real stories about real people and real cesspools on Maui. Names and other information has been changed. The Case of the No Place to Go Cesspool […]
Hawaii Life Vacation Rentals along with Jeremy and Megan Stice are currently offering six different vacation rental properties at the very popular and beautiful Ka’anapali beachfront resort of The Honua Kai Resort and Spa. We are here to help fulfill the vacation experience you may have dreamed about since childhood, an escape from brutal winter […]