Education

Selling a Haiku Maui Home - Trends, Tips, and Advice

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.

Tim Stice

8082688511

timastice@gmail.com

What is a Residential Condo in Hawaii? Part 2

What is a residential condo on Maui and how does it work? This blog is specific to Maui, but the general rules apply to all islands, but each island has zoning and rules that are different.

What is a Residential Condo in Hawaii? Part 2

What is a residential condo on Maui and how does it work? This blog is specific to Maui, but the general rules apply to all islands, but each island has zoning and rules that are different. This blog is a continuation of a blog I published in 2011, "What is a Residential Condo in Hawaii?" and adds some more details.

Working as a real estate professional, you need to be able to understand and explain what a residential condo is and how it differs from a similar property that is not a residential condo.

Simply put, a residential condo is a splitting of property ownership, using Hawaii Revised Statutes section 514 B, to allow separate ownership and mortgaging of property of a parcel (single tax key ), under Maui county zoning. It is possible to create separate “ apartments “ from legally permitted structures, or vacant land parcel "apartments" under HRS 514B.

A residential condo is not a subdivision. Maui county still regards the original lot to have the controlling, underlying zoning. No extra lot density or other improvements are allowed on the original lot. New tax keys are assigned once the process is complete, but they only add "apartment" keys to the original tax key. All residential condos have six numbers in their tax keys, while non-condo parcels have five. This is the fastest way to find out if a parcel is a condo or not.

Hoomalolo condo

Maui county requires that any parcel, to be considered eligible to considered, has to have all structures totally permitted. Everything has to match county permit records.

A checklist would look something like this for starters to evaluate a property:

  1. What is the underlying zoning (i.e. R-2, R-3. rural, ag.). Get a county zoning verification signed by Maui planning department.
  2. Does the zoning allow multiple living structures?
  3. Do the covenants on the title report restrict residential condos? (many do)
  4. What is the water meter size?
  5. What is the current water meter sizing fixture count for the current homes? (You need to do the county water department worksheet.)
  6. Do the setbacks for all of the structures conform to zoning? (Hard to tell without a survey locating all structures.)
  7. Can all permits be verified for every improvement on the property? This includes "add-ons" such as covering a permitted lanai, enclosing carports, and other items that owners do without permits.
  8. Were notices of completion filed for owner builder construction and has it been more than one year since the filing of these notices?
  9. If improvements were built by a contractor, have all lien notices been filed and final inspection signed off by county on all permits?

This is just a starting point in the process. If you are able to verify all of the information above, you have just saved about $5,000 in the process, as researching all of these issues, especially permits , is very difficult because Maui County has very poor records for anything built prior to 1990 and the county does not retain building plans for more than a year.

Now, you need to put together a team.

You are going to need the following:

  1. A local Maui attorney who does this process often, or even full-time, who will produce the declaration, public report and other necessary documents under HRS 514B
  2. A local Maui survey/engineering firm to produce the survey and condo map, as well as to certify all of the building improvements.
  3. A Hawaii licensed real estate broker to sign on the condo documents
  4. somebody who knows their way around the county to research permits, title reports, covenants ( maybe a Realtor or professional planner)
  5. A Hawaii title and escrow company to do the title search and produce all of the covenants and restrictions on title for the property.
  6. A home inspector to provide an inspection report

Most of these processes can be done by the engineer/survey team for a fee. Most attorneys will not process the CPR without a team to take care of all verification and inspections that are required.

If you have completed the first part of the process and can hand it over to your attorney and engineer, you can hope to have the process completed within a year or a little more. Little things can cause big delays. Missing one permit can send the whole process back through the loop again and that will take a lot of time.

Over the past 6 years, I have had many inquires on my 2011 blog, and I wrote this to clarify some issues and provide some links to help. Please contact me for additional resources and recommendations for professionals who can help you along with this process.

Tracy S. Stice  Realtor-Broker   Tracy@hawaiilife.com   808-281-5411

What Is My Home Worth? Values in New Traditions, Maui Lani

It can be difficult to know when the right time to sell comes around. Frankly, no one has a crystal ball, so the next best thing is cold, hard stats. I have isolated New Traditions in Maui Lani to show a few different variables: square footage, beds, and baths.