Great New Listing
My plans for my next blog were to tell the world about my beautiful new listing at Pacific Shores in South Kihei. There was so much to talk about. The incredible mountain views, plantation shutters, 2 Bedroom/2 Bathroom, new split air conditioning, popular vacation rental… But I never had a chance! Pacific Shores B414 was listed on a beautiful Sunday morning, and by Tuesday I had 14 showings scheduled. After receiving 4 great offers, we opened escrow on Friday.
A Sign of the Times
Multiple offers, often over the asking price, contingencies waved are what is happening in this very strong Seller’s market. Many Buyers are writing offers for multiple properties and coming up empty handed. The biggest driver for this market is extremely low inventory. The minute a property comes on the market, Buyers start swarming. The result is driving up the prices to the highest level in 15 years. In the case of condos, 54% sold at or above list price and 44% of all condo sales were cash deals.
What’s a Buyer to Do?
Be ready. Every Buyer needs to make sure they are ready with a pre-approval from a Hawaii lender. If you are a cash Buyer, have your proof of funds ready. Seller will want to know that a Buyer is financially able to purchase their property. Cash is always king but a financed sale can still win a deal.
As I stated above, most properties are going for at or above the asking price. This is not the time to low ball someone. Often in multiple offer situations, Sellers want everyone to offer their “highest and best.” This means you should offer the highest you are willing to spend and make sure to put in the best contingencies you can. There is not a lot of back and forth going on right now. Sellers also look at how much earnest money a Buyer is willing to put down. How much are they willing to part with to show how invested they are in this property?
A quick and fast close is always going to be appealing to a Seller. Cash will be able to close quicker, usually 30 days in Hawaii (but can even be quicker). Financed deals typically take 45-60 days to close. Plan on 60 days if you are purchasing a vacation rental. Although a quicker close is ideal, you can also only do what you can do. It’s much better to close early than close late. It’s important to work with a good local lender that will meet their timelines.
Working with a Realtor that knows how to navigate this crazy time matters. Your Realtor should know how to write a purchase contract that will get the attention of a Seller. Making sure you have a good open conversation about what your budget and goals are is very important. No one should push you into a situation you don’t want to be in. Your Realtor will also need to be comfortable to tell you when it’s time to go big or go home!
Most importantly, be patient. When one of my clients misses out on their “dream home,” I have always felt that this meant that wasn’t the one. And it never was the one, and people have been happier with what they have eventually gotten. So hang in there, Maui is worth it.