BUYING MAUI REAL ESTATE

Maui, The Valley Isle, 'Paradise' and 'No. 1' - offers many unique environments from the warm, Southwest-like conditions of Lahaina and Kihei on Maui's leeward (away from the wind) West and South shores to the cooler, more humid, rainforest-like conditions of Haiku, Huelo and Hana on Maui's Windward (toward the wind) North and East facing coasts. As dramatic the difference between the wet and dry climates of the North and South Shores, the temperature differences between the coastal, sea-level, regions and Upcountry is equally dramatic. Temperatures in Kula, at about 2,500 feet elevation, are roughly 10 to 12 degrees cooler than Kihei, Lahaina or anywhere else along Maui's tropical coastline. I mention this because Maui, only 729 square miles, has dozens of micro-climates. Wet, dry, hot, cool, even cold. From life on the beach to life on the mountain. From watching the whales at play from an oceanfront lanai, to taking in the panoramic view of hundreds of square miles of glimmering ocean and an island-wide double rainbow from a mountainside lanai - this is Maui.

SEARCHING FOR MAUI REAL ESTATE

Maui's MLS system allows Realtors to print out a number of standard reports for clients, including CMA's (Comparative Market Analysis) which will indicate what homes are available for sale and the prices of comparable homes which have recently sold. You can request your agent to include you on the Auto-Notification feature of the Maui MLS system, for selected properties (i.e., specific areas/regions, certain condo complexes or subdivisions, specific styles of homes or locations, such as ocean of beach front). Auto-Notification sends the client an e-mail with a link to a full page report on each new property that is listed in the Maui MLS the instant it is entered into the system. Your not waiting for your Realtor to notice the new listing and notify you.

FEE SIMPLE AND LEASEHOLD

These are two terms that are alien to most people, especially "Leasehold". They describe the two basic ways a property owner in Hawaii hold title to real property. Fee Simple is basically the way most people hold title (tenancy) to property elsewhere on the Mainland US or a number of countries. Fee Simple describes a situation where one owns both the land and all improvements on the land. Leasehold is the term in Hawaii, given to real estate where only the improvements are owned by the property owner and the land on which the improvements sit is owned by a third party lessor who holds a long term lease and collects monthly rent for the use of the land. The owner of real estate improvements is the lessee. This is a concept that some customers looking to buy Maui real estate are not comfortable with. The law which allowed 'leasehold' property sales went into effect in 1961 and many of the leases were/are 50 years terms. So, starting in the second decade 2011 and on, we will start to see some of those leases come to term. Whenever you purchase leasehold real estate in Hawaii, you want to know and understand the distinct terms of your property's lease, when lease payments are up for renegotiation, when the lease expires and what the options are for lease extensions and at what terms.

In theory, a leasehold property's real estate market value would be equal to the value of a comparable Fee Simple property minus the present value of the future lease payments discounted at a rate equal to an anticipated growth rate for the comparable Maui real estate.

SAVE YOURSELF THOUSANDS, LITERALLY, IN LOWER MAUI PROPERTY TAXES!

If you are planning to buy, or have already bought, a home on Maui, whether a single family residential home or condominium, and are planning on living here full time, you are entitled to a Maui County property tax exemption. Now, this only applies to principal residences; not to 2nd homes, vacation homes, investment/rental properties. Ask your Maui Realtor for the property tax exemption form; better yet, ask them to fill it out, you sign it, and then ask them to file it for you.

As your Buyers representative, I will work with you in all phases to ensure a smooth purchase of your own piece of paradise.