Maui Real Estate - Lisa B. Miller R(S)

Of all the properties for sale on Maui, a large percentage are Short Sale properties. These properties are usually priced below market value and appear to be a good deal for buyers. But is it? The answer depends upon the buyer.

A short sale is when the seller needs to sell the home at a price that is less than amount owed on the mortgage, and the seller's lender has agreed to forgive the difference. These properties can be in great shape and located in great neighborhoods, but the buyer must understand the short sale process before submitting an offer. As a buyer, you must:

Be Patient. Usually an escrow period on a non-distressed property can take an average of 45 days, but a short sale property can take up to 90 days. The lender must accept the offer, not just the seller, and this process can take a long time. Frustrations also can arise in the process, so buyers need to be prepared and to have flexible living arrangements available to accomodate a long escrow.

Do Research. In some cases, a seller is listing their home as a short sale because they are facing financial hardship and, therefore, may not be able pay off liens attached to the property. The lender will not pay these off for the seller, so unless the seller can ask these to be forgiven by the vendor, the buyer will be expected to pay off the outstanding liens. Such liens may be unpaid property taxes, HOA fees, or judgement liens.

If there are liens, the amounts can vary to somewhat insignificant to an amount large enough to discourage a buyer from proceeding with the sale. Most of these liens can be found in a preliminary title report, but it's important to check all resources so that there are no surprises at the closing table.

Do Due Diligence. This goes for any property a buyer is interested in purchasing, but I feel it is worth mentioning in a short sale purchase. A buyer can find out a lot about a property through inspection reports, disclosure forms, and preliminary title reports, but buyers need to do their own investigative research to determine that the home is suitable to their needs.

Drive or walk around the neighborhood to get a 'feel' of the surroundings. Do so at different times of the day, such as in the afternoon and again in the evening. You may discover different things at different times of the day.

Talk to neighbors and try to guage their fondness for the neighborhood. You may learn a lot!

Pay close attention to anything that might stand out with your next-door neighbors. Do they take care of their home? Do you hear any excessive animals noises that might keep you up at night?

The list can go on and on - it really depends on the specific property.

Buyers CAN get a great deal from purchasing a short sale property, but they need to be informed and have realistic expectations to avoid a lot of frustration.

Please contact me for more information!

The Maui real estate market continued its downward trend at the end of December 2008.  According the "Realtors Association of Maui", the percentage of single-family homes fell 21% on Maui for the year ending 2008 compared to 2007.  The median price of a home on Maui fell 8% to $577,867, and average sales price decreased 10% to $831,424.  Condo sales fell 34% in 2008 compared to 2007.  However, the average sales price increased 13% to $921,063, while the median sales price is unchanged at $549,500.  

When looking at the last quarter of 2008 (October 1 through December 31) sales dropped 12% on Maui.  In South Maui, only 21 homes sold in Kihei, reflecting a 49% drop from third quarter, while only 1 home sold in Wailea, which was an 88% drop from the previous quarter.  Condo sales dropped 20% in Kihei (40 sold) and condo sales in Wailea dropped 56% (19 sold).  Sales for this last quarter of 2008 were the lowest for both homes and condos, which reflects the global economic concerns that came to a head in September 2008.

If interested in selling, it is important your home is priced extremely well in order to compete with the increasingly large inventory of properties.  It is also important your home is staged well, in great condition, and that you are flexible with terms for a successful sale.

On the other hand, this is a great opportunity for buyers to take advantage of this great market with lower prices and increasing inventory.  Mortgage rates are at the lowest they have been in years, which can really save buyers a lot of money.  Short sales and foreclosures are becoming more and more common and I would advise buyers to proceed with caution since these transactions can take longer than anticipated (up to 90 days) and require more obstacles to overcome.  Buyers waiting for the bottom will likely miss the unique properties or the lowered mortgage rates that we are seeing now.  With prices this low and the number of beautiful home and condos on the market, this is a great time to finally own a piece of paradise on Maui!

For more information on how I can help you buy or sell your Maui property, please contact me at (808) 214-8633 or email me at Lisa@DreamMauiHomes.com

The holiday season is in full swing on Maui, which, like its lifestyle, is very laidback, and one of the reasons why it’s my favorite time to be here.  Maybe it’s because of the warm, sunny weather and aloha spirit, but no one seems to be in that holiday rush, or stressed out about fulfilling someone else's expectations. 

It’s also nice that there isn’t holiday overload with the constant and overdone commercialism that you find on the Mainland (nor is there an obnoxious Christmas sweater to be found).  

But, Maui isn’t bah-humbug on the whole holiday spirit, either, just toned down.  Here you will find lights on palm trees, holiday music on the radio (I always love to hear Mele Kalikimaka), the Mall Santa in an aloha shirt (of course!), and even real Christmas tree lots.  Yes, there is commercialism, but it seems to be just the right amount.  Enough so that is easier to focus on what the holidays are really about.  You can celebrate as much or as little as you want without the guilt of meeting certain expectations.  At least I think so, anyway.

But, the best part of all is that I get to spend a warm Christmas Day with my family RELAXING on the beach.  Where else can you do that?  Well, maybe Florida. 

Wishing everyone lots of aloha this holiday season!  Mele Kalikimaka!