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Maui Real Estate - Sellers Guide to Maui Real Estate
A SHORT LIST FOR SELLERS
If you are considering selling your Maui home, resort vacation property, or investment property, the process should start with
selecting the right REALTOR®. To help you in that process, I have assembled a list of questions to ask any real estate agent
you consider to list your Maui property.
THE VALUE OF A PROFESSIONAL REALTOR® AS YOUR AGENT
Not all real estate agents are created equal. Number of years in real estate, designations, years lived in the community they
work in are only pieces of a bigger picture. Total background tells a bigger story. Education, success in their overall
professional career, whether they invest in real estate themselves and more, all tell a more complete story of an individual’s
capability as a REALTOR®. But, the most important factor is the individual’s willingness to commit time to your transaction,
to do whatever it takes to see that it is completed successfully and their ability to solve problems.
I’ve worked with a number of real estate agents since becoming a REALTOR®. What I have found is that I have a significant
advantage over most because of my depth of professional background and a work ethic that dictates I do everything ethically
possible to bring about a successful result to any task, or in the case of real estate, to any transaction. Too many times I
see agents willing to simply throw a problem back into their clients’ lap, telling the client to let them, the agent, know
when they, the client, have the problem solved. This is where the rubber really meets the road, as the old saying goes.
I can promise you that if you employ me as your agent, you will know that I earned the commission I am paid.
SELECTING A REALTOR®
Surveys indicate that most people, whether buying or selling real estate, pick the first real estate agent they meet. It is understandable,
since most people are not sure what the standards are for performance. For most people, the purchase or sale of real estate is among the
largest financial transactions in their lives. If you are considering selling real estate in South Maui, I encourage you to shop around for
the agent you pick to list your Maui Home, Condo or Lot. This link contains a list of suggested questions to ask any real estate agent you
are considering engaging. I look forward to the opportunity to answer these questions, should you decide to include me among those
REALTOR® and other real estate agents you may consider.
JIM'S MAUI REAL ESTATE SELLERS’ GUIDE – THE BOOKLET
I have assembled a booklet containing a compendium of useful information for people interested in selling real estate on Maui. It is bound
and includes a detailed table of contents. The booklet’s contents can be customized to meet clients’ specific needs. I encourage you to
contact me to pick up a customized copy of this valuable booklet before you start your search for a Maui REALTOR® to help you sell your
Maui real estate. I promise you there is nothing like it on Maui. Like this website and anything else I do for clients, much thought has
gone into it and much effort has been expended to make it a useful tool with quality content for discerning sellers. |
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While some content is identical to that contained in Jim's Maui Real Estate Buyers’ Guide, the majority of it is unique to
those seeking to sell their Maui real estate, whether an oceanfront luxury home, resort condo or investment property on Maui.
PRICING YOUR MAUI PROPERTY – THE SEARCH FOR ‘COMPS’
Pricing your Maui Home, Condo or Lot begins with a comparative market analysis (CMA) based on a carefully chosen group of
homes similar to yours in size, construction, age, location, views, proximity to the ocean, features, etc. which have sold typically in
the past six months. In addition to the CMA, you will be provided with a historical analysis of yours and like neighborhoods showing
average selling price and average cost per square foot. Once reviewed, based on our conversation, I will rerun the analysis incorporating
any changes you have requested, such as different properties to use in the CMA, or different features, neighborhoods, etc.
We will look at other factors such as whether it has rental income or the potential for rental income. We will evaluate
the extent to which it is a candidate for a 1031 Exchange. External factors will also be evaluated, such as the current Maui real estate
market—whether inventory is tight or plentiful; which direction prices are trending and other factors indicating overall market strength.
Together, this information will help you make an informed decision about where to price your Maui home or property. My job
is to give you the information you need to feel comfortable determining the price to ask for your home or property.
OCEANFRONT, BEACHFRONT AND OCEAN VIEW PREMIUMS
Whether your property is an Oceanfront or Beachfront property, or has a great Ocean view, makes a significant difference
in it’s market value. Starting with the raw land value, along the leeward coastline on Maui, a quarter acre beachfront or oceanfront lot
can range in market value from $4 million to $6 million and, possibly, more. This compares to a quarter acre lot with a good ocean view,
but, sitting just a few hundred yards away from the shore which might carry a value just one fifth of that amount. Overall, including a
home of, say, 4,000 to 5,000 square feet, that Oceanfront or Beachfront property might be worth approximately 3 times the same home on the
ocean view lot.
Though on a lower scale, the same comparison can be made of Ocean View Maui real estate compared to Garden View of
Mountain View Maui properties. Here, my rough rule of thumb is 30% to 40% for the market value premium attached to a nice Maui Ocean View
home or condo compared to the same property which has a garden view or even mountain view. So, whether you are buying or selling Maui real
estate, take this into account when evaluating market values.
THE HAWAII ASSOCIATION OF REALTORS® STANDARD FORMS FOR THE EXCLUSIVE RIGHT-TO-SELL LISTING AGREEMENT AND
SELLERS’ REAL PROPERTY DISCLOSURE STATEMENT USED WHEN SELLING MAUI REAL ESTATE
Like most of the forms you will encounter when buying or selling Hawaii real estate, the Exclusive Right-To-Sell Listing
Agreement is a standard form used throughout Hawaii by virtually all REALTORS® and most other real estate agents. One more factor which
differentiates me from other real estate agents is that I will not hold you to some timeframe within which the Listing Agreement can not
be canceled. I am confident in my level of service to you, but, if you are not happy with me, then you have the right to terminate our
agreement immediately. With that in mind, all of my Listing Agreements have a “1” indicated where it calls for the number of days of
“advance written notice” required for the Sellers (you) to cancel the Listing and no minimum “listing period” either. How is THAT for
Confidence?! Click the following link if you would like to see the current version of the Hawaii Association of REALTORS® Standard Form
for the Exclusive Right-to-Sell Listing Agreement.
One of the items you, the Sellers, agree to in the Listing Agreement is to fully disclose any problem with the Maui
property that you are selling which would measurably effect that value of the property. The Sellers’ Real Property Disclosure Statement
(there are 3 different forms, one for Single Family Homes, one for Condos and one for Vacant Land) is the HAR standard form used for this
purpose.
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THE MARKETING PLAN
It is here that services you receive from a real estate agent differ widely. Obviously, there are discount service levels
offered by some broker/agents. But, there is a wide difference in services and performance offered by real estate agents charging ‘full
service’ commission rates. My Written Commitment to Sellers describes much of the marketing techniques I use to market your property, so I
won’t go into detail here. What is important to emphasize is that I do not scrimp on the cost of your marketing campaign and no cost is
passed on to you. Remember, over 75% of all real estate transactions now start via a search
or inquiry on the internet. This is especially true of Hawaii real estate and in particular Maui real estate.
To assure my marketing plans produce top quality results, I invest in the latest in start of the art equipment, including
computers, network servers, a broad assortment of software, digital cameras and accessories, printers, office equipment and other real
estate resources. Today, the most important tool in marketing real estate is The Internet. To take advantage of that, I have committed
much time and expense toward the development of my website, which is dedicated to the marketing of Maui Real
Estate. Is is different from so many real estate websites which are canned sites produce by mainland or foreign companies who use common
templates they apply to any real estate agent’s website, whether they are in Hoboken, New Jersey or Maui Hawaii. There is nothing canned
about my site. My objective was and is nothing less
than providing the Best Real Estate Website on Maui. ‘Best’ meaning from the perspective of anyone searching to Buy or Sell Maui Real
Estate. A greater percentage of transactions to buy Maui Real Estate occur each year where the buyers do everything over the interest and
never physically see the property they purchased until weeks or months after they purchased it. Some of those who are simply investing in
real estate may never see what they have purchased.
I want your inputs too. I am always looking for marketing alternatives that produce results. Many of my clients are
corporate executives who, themselves, have substantial experience, direct or indirect, around the selling of products and services.
COMMUNICATION, FEEDBACK AND FOLLOW-UP
I believe in providing the level of communications which gives my clients the greatest level of comfort. Whether that is
in written form (letter or e-mail), or verbal (phone or face to face if here on Maui); whether it is monthly, weekly or daily, or some
combination – my objective is your complete satisfaction with my services and the results you are experiencing. I’ll probe my clients to
get feedback from them and go to great lengths to make it easy for clients to give me feedback. Your trust in me and belief in honesty is
paramount to me. Nothing else matters more.
PRESENTING YOUR HOME
One of the most important factors in obtaining the best price possible in selling your home is how it appears to
prospective buyers. Before it goes on the market, you will want it to look it’s very best. For a good check list, download Preparing Your
Home for Sale. While not inclusive of everything, following this list will make a big difference in how your home may be perceived in a
showing. It seems like, as I get older, things like getting the house painted, fixing those broken items around the house, perhaps
replacing carpet that is badly worn or blinds that are looking disheveled are more daunting tasks than they use to be. That’s when it’s
time to surrender and call in a contractor. Spending the $$$’s now to correct what could be a long list in a home inspector’s report, and
create a much more favorable first impression, could mean significantly more $$$’s for you at closing. But, don’t misunderstand me, paint
and carpet are relatively cheap compared to what they can return; this is not encouraging you to launch into a major remodel—such efforts
rarely give you anywhere near the return necessary to cover their cost.
OPEN HOUSES
It is pretty well known in the real estate community that open houses do more for marketing the REALTOR® than they do for
marketing the home. You, the seller, make the call as to whether you want your REALTOR® to do open houses. If I’m a full time REALTOR®, and
I am, I’ll be more than willing to do open houses. You, the seller, are the one who is put out before hand, preparing the home, and while
the open house is going on, finding someplace to hang out for three to five hours. Still, while open houses are not at the top of the list
of marketing techniques that sell, they do occasionally produce results. It is your choice and if your REALTOR® doesn’t encourage open
houses, they are probably hurting their chances to find a new prospect, or two, more than they are hurting your chances of finding a
buyer.
THE OFFER
You need to know what to expect when an offer comes in. The form of offers in Hawaii is written on a form called the
Purchase Contract. It is a twelve page legal document with a two page Counter Offer form should that be necessary. Your listing proposal package should have a copy of these two documents in
them. They are standard forms, approved by the Hawaii Association of REALTORS® and recognized by the DCCA (Dept. of Commerce and Consumer
Affairs) which regulates the real estate industry in Hawaii.
When received, you will typically have 24 to 48 hours to respond. You, basically, have three choices—accept it, reject it,
or give a counter offer. This is usually an emotional point, so keep cool and remain focused on the ultimate objective—selling your home
for your target price. Even if you respond with the asking price to a weak offer, you are saying more than if you simply don’t respond.
Pay attention to major contingencies such as the purchase being contingent on the sale of the buyers’ home or the ability to sell their
[surrendered] property in a 1031 exchange. The ability to obtain mortgage financing is another significant contingency. A cash offer (no
financing contingencies) and no contingencies on the occurrence of another event, such as the sale of another property, may be a better
offer, even if it is a few thousand less than another offer with several contingencies. Discuss with your REALTOR® how you would reply in
such an event.
If you start to feel overwhelmed or uncertain, that is where I come in. My role is to help you evaluate the alternatives
and, if we have done that well, make the best choice for your situation.
THE CLOSING
Assuming you have accepted an offer or counter offer, your agent will arrange for the Escrow company designated in the
contract to get the contract and deposit check. The closing process is another area where your agent gets to demonstrate their skills. There are a number of tasks going on
simultaneously - a home inspection, getting copies of all required homeowner association or condominium association documents for the
buyer, tracking the buyers’ progress in obtaining any required financing, arranging for any survey or stacking, termite inspection, or
other inspection related requirement and obtaining the preliminary title report and reviewing it and the survey for possible encroachment
issues or other matters that could ‘cloud’ the title. All of these and possibly other matters must be taken care of in a timely manner if
the sale is to close on time. Where I believe I stand out from many agents is in my willingness to do whatever it takes to get the job
done. In the past, I have gone to the extent of petitioning the County for a variance to approve a clients driveway, which involved a 14
page presentation of photos, drawings, a written justification and exhibits. Many agents would have let that burden fall in the lap of
their client. So, while I rarely discount my commission, there is not anything I have encountered yet that I did not embrace and take care
of for my client.
If I have done my job correctly, the closing process will have proceeded smoothly and your transaction will have closed on time.
ATTORNEY
The Hawaii Association of Realtors Purchase Agreement and supporting forms are designed to cover most issues that come up
during a closing on the sale of real estate property. However, as a real estate agent, I am neither allowed to or am able to render legal
advice/opinion on any matter. Therefore, depending on your unique circumstances, it may be advisable to consult with an attorney
concerning the transaction. I, or any agent, will be more than happy to provide you with a list of attorney’s on Maui who specialize in
real estate law.
SURVEY vs STAKING
While neither is generally required for a condominium sale, one or the other is generally always required when a single
family home is being sold. Many agents recommend their sellers order a survey, as opposed to a stacking. Rather than suffer the possible
problem down the road of an improper pin placement or undiscovered encroachment, it pays to pay a little more and know the problem know.
My recommendation, order a survey. If you don’t want to pay the difference, I will (I’m serious). |
