This spring and summer season bring change to the Hawaii Real Estate Market. As Real Estate continues to show dramatic improvement in price recovery and the velocity of sales, there is another factor at play – there is a surplus of Buyers and a shortage of homes – a shift from a Buyer’s market of years past, to a Seller’s market.
Take charge when buying Hawaii Real Estate by using a home buying checklist
With low supply and high demand, be prepared to find yourself in multiple offer situations. It’s not the ideal situation when buying a home, as it can be emotionally charged. However, it is a reality in the heating up Hawaii market.
How to Differentiate Yourself from Other Buyers – Get YOUR Offer Accepted!
Buyers should be proactive and take charge. Put yourself in a position of strength, and set your self apart from other buyers. Be ahead of the curve; be READY to be in first position to get an accepted offer on your Hawaiian dream home!
7 Hawaii Home Buying Tips
Here are some tips to help you become an appealing buyer and succeed in buying a home in the HOT Hawaiian Real Estate Market:
#1. Plan Ahead
When planning to purchase a home or condo it is important to plan four to six months before starting the search. During this time you want to:
Check Your Credit – “You’ll want to check your credit score before applying for a mortgage, but you can keep your credit file up to date by checking your credit report regularly.” (Smart Money).
Avoid Large Purchases
Minimize Any Debt – Recent credit and debt history are crucial when applying for pre-approval on a bank loan, ensure that you are aware of your situation and give yourself time to maintain or increase your appeal with strong credit.
#2. Set a Budget
Planning your budget is crucial in buying a home. It is important to calculate the cost of the home and all the fees included including a down payment, title insurance, homeowners insurance, and closing costs.
When planning to buy a home, take into consideration:
Cost of the home
Down payment
Closing costs
Monthly mortgage payments
Your nest egg
When it comes time to look at homes, look at homes within a 10% variance of your budget, it will make the process much smoother.
#3. Cash is King
It’s simple – CASH IS KING! When purchasing a home, with cash, you gain leverage against the competition in the following ways:
1. An ALL CASH offer to purchase can result in a ‘discount’ – as much as 10%. Sellers are very likely to accept an all cash offer for less money, over a financed offer for more money. A financed offer is more risky to a a Seller, as it can fall through near the end of escrow due to the Buyer’s inability to gain mortgage financing; further the Seller has incurred the opportunity cost of taking their home off the market fo
