While technology has no doubt made an impact on the business of Real Estate sales in recent years, certain basics still apply. Even though we are experiencing a slam-dunk seller’s market–with upward of 50% of sales nationwide resulting in multiple offers and overbids—care should be taken to present your property in its best light nonetheless.
So, yes the book has already been written on this, but a good refresher course may be in order. Here are some highlights from a recent article from Redfin that may be worth reviewing:
- Curb Appeal—simply put, there is no substitute for a first impression—and you only get one!
- Home Office—one of the positive takeaways of the pandemic is that home offices will play a much bigger role moving forward for the work force and businesses.
- Outdoor Space for Entertaining—our home is our palace more than ever before!
- Updated Kitchen—short of a total remodel, perhaps some updated stainless steel appliances would make sense.
Other things you may want to consider is professional photography; a move-in ready house that’s also ready to move out of; and a listing agent who can write a great description of your home to help pull in those multiple offers!
So as not to leave buyers out of the discussion, here are some tips that may serve buyers well. Please note that this is a market assessment on a national scale and does not reflect conditions on Maui. You’ll have a chance to take a look at that a little further along. I realize, though that those of you reading this Newsletter may be considering purchases in other parts of the country besides Maui. Tips on how not to overspend for your home are pretty generic, though.
Current mortgage rates may be helpful as well.
Some highlights of the article include:
39% of buyers since the beginning of the pandemic have exceeded their budget to purchase a home in this very competitive market. Don’t get caught up emotionally; be a little more patient for something affordable to come along.
Your pre-approval amount is not your budget; make sure you include property taxes, insurance, maintenance and homeowner association fees as well.
Having an emergency fund in place, anticipating hidden costs, fluctuating interest rates should all be considered.
They said it would never happen here on Maui—at least not in less than a year. But does it really come as a shock that the median home price on Maui has now exceeded $1 million!!
According to May statistics just released:
Median Home price is now $1,039,500 compared to last May’s $800,000—an increase of 29.9%
Median Condo price has actually dropped from $680,000 last May to $615,000 this May,
but average Condo price has gone from $759,440 last May to $1, 003,263—an increase of 32.1%
Inventory continues to decline. As it stands, if no more listings were to come to market, it would take 54 days to totally exhaust the inventory of homes, and 42 days for condos! Holy Smokes, Batman! Unheard of!
Here’s a more day-to-day look at what it’s like out there as a buyer. Since the weekend (3 days), and just in south Maui, 13 properties have SOLD (closed escrow). Five have sold over asking price, three have sold at full asking price, and five have sold for an aggregate of 4% under asking price—which is inflated by a ringer in there that actually sold for 10% under asking price. In addition, 13 properties have gone PENDING. Some good news is that 16 new listings have come on line as well, indicating there may be a few more owners out there who have decided to cash out “while the iron is hot”, so to speak.
If you are ready to buy and willing to get into the fray, my best advice is to choose a top-notch, experienced Realtor who has worked through markets like this in the past and can guide you through the ups and downs. My 32 year experience, knowledge of the marketplace, and reputation for success is your guarantee that you will be well represented.
Once again, things continue to move so fast that my Featured Properties were getting sold before I could even get this Newsletter to your inbox! So please, take advantage of my alternative offer to do a special search just for you! All I need is where on the island you want to be, home or condo, vacation rental or not, your budget and any other particulars such as view, bedrooms, baths, etc. Your wish is my command!
Ok, here’s the latest. Our Covid numbers are holding at a very manageable level, and outdoor masks are no longer required. Governmental facilities, hospitals, public transportation and all indoor businesses are still requiring masks—and fines will be levied. No more social distancing outdoors and gatherings can include up to 25 people. Negative Covid tests within 72 hours of your arrival are still required, but post arrival tests have been discontinued as of June 4th (yay!). Inter-island travel will no longer require Covid tests as of June 15th.
Restaurants are operating at 50% occupancy, and booking up quickly. Reservations far in advance are recommended. Once our state-wide vaccination level reaches 60%–and we’re not far from that—occupancy will be increased to 75%. When 70% are vaccinated, all restrictions will be removed.
Renting a car on Maui is still a big problem that will not be resolved anytime soon. Even bicycle rentals are pretty much sold out. Again, advance planning may help, but no guarantees. Public transportation—buses, taxis—is available, as well as limited Uber and Lyft. A new driver-for-hire company is getting started exclusively here in Hawaii but not much information about it as yet.
And in closing, as we begin our summer months it’s definitely getting warmer but there still is no place on the planet that can offer the amenities and lifestyle of this beautiful island. Whether you’re new to my Newsletter or have been following me for years, it would be my greatest pleasure to help you find your very own little piece of Paradise.
Malama pono! (do what’s right)
Maui Realty Associates
(808) 283-9093 cell
(808) 879-5510 fax