As a guide, follow the checklist when purchasing real estate in Maui, Hawaii. Whether you’re a first-time homebuyer or a seasoned purchaser, the negotiations in a transaction can be intimidating and stressful. However, with the assistance of a licensed well-versed real estate Broker, the transition will be seamless. Watching your funds closely, as you should, do not overlook the following: Closing Costs, Furnishings, Inspections, Home Warranty, and Repairs
Closing Costs
Your closing costs are determined by a variety of factors, but you can expect it to be between 2% to 5% of the purchase price. Depending on the prorations and adjustments with Property Taxes & HOAS, you can request the seller cover some of the closing costs. However, these are incurred by the Purchaser & will increase with Financing or when performing a 1031 Exchange.
Furnishings
Love how the seller has furnished and designed the home? Buyers often negotiate keeping couches, landscaping items, patio furniture, appliances, and more. Furnishings are personal property, making it a separate bill of sale.
Inspection and Closing Timeline
Buyers are excited to get into their new property. Inspections and close timeline are often more attractive to sellers. Just ensure you allow yourself ample time to get your financing in place and complete proper & thorough inspections including home, termite, & septic.
Home Warranty
Sellers do not traditionally pay the premium on the home warranties at closing in Hawaii. Special Terms can be added to the contract, if need be.
Repairs
Your inspection may uncover small or large repairs needed to bring the home up to standards. You can negotiate to have these items fixed before closing or ask for a price reduction to cover the costs. Just keep in mind, there is nothing in the Hawaii Purchase Agreements, that mandate the Seller fix or repair anything. Technically, you are buying the home “As Is”.
So, what should you negotiate when buying a home? In Hawaii, it is important to focus on price. It is best practice if you factor in the Closing Costs, Furnishings, Inspections, Home Warranty, & Repairs prior to submitting an Offer and follow the Checklist for Purchasing real estate in Maui.
For more details or further explanation, Licensed & trusted professional agent, Kimberly Drechsel with Living Maui Real Estate, LLC. Schedule an appointment to speak directly.