The housing market in Maui can feel a little like a rollercoaster nowadays. Due to the unprecedented shock of the COVID-19 pandemic, an increasing number of people are pursuing a more relaxed way of life by working remotely from the beautiful Hawaiian Islands. Combined with the fact that mortgage rates remain relatively low, Maui has turned into a very competitive market.
Don’t believe us? According to recent stats, median condo prices on Maui are 15.3% higher today than in April 2020, demonstrating just how hot the market is. So, if you want to successfully bid on a property in this idyllic part of the world, you’ll need some clever strategies up your sleeve. Fortunately, we’ve put together a few helpful tips to boost your chances of securing a dreamy new home.
1. Know what you want before you start looking
Properties are snapped up very quickly in seller’s markets, so you shouldn’t spend days weighing up your options before making an offer. To ensure your search is as fruitful as possible, spend time making a list of the top requirements and desirables you want out of a new home. If you discover a property that contains a high majority of your top-ranked features, don’t hesitate to put in a bid.
2. Demonstrate your financial stability
You must obtain a pre-approval letter from your lender if you plan to finance your purchase with a loan. In so doing, you can prove to sellers that you have excellent financial credentials and are very unlikely to fall back on payments. It is important to note that pre-approval letters are considered more reliable than pre-qualification letters, so make sure you ask for the correct documentation.
3. Don’t waste time with a small offer
Sellers across Maui are receiving multiple offers well above their asking prices right now. In this way, there’s little point in making an offer that undercuts the asking price unless the property has been on the market for a long time. Only make offers on homes you know can afford and be prepared to make further bids if necessary.
4. Pay with cash
With interest rates currently at rock bottom, it may seem more sensible to use financial products than purchase a property with cash. However, lenders often charge expensive fees and sellers tend to prefer cash over financed options. You can always refinance after buying your home to replenish your investment accounts and protect your savings.
5. Try to keep your contingency period as short as possible
Lowering your contingency period will ensure that the deal is closed as quickly as possible and may seem an attractive tactic to sellers. Having said this, it is still vital that you book a home inspection to ensure you won’t be left with any unexpected maintenance costs you can’t afford.
6. Personalize your offer
Have you fallen in love with a property? Don’t be afraid to inject a little passion into your offer by sending the seller a personalized letter. Tell them a little about yourself, your reasons for moving to the area, and how the property in question could improve your life. While most sellers will, of course, want to get as high an offer as possible on their property, a convincing letter could convince them to choose a bidder with a slightly lower offer than others.
7. Put a large chunk of money in escrow
Depositing a considerable sum of money into escrow tells sellers that you’re committed to completing the purchase contract. In the unfortunate event that the deal falls through, your money will be protected by several contingencies to ensure you remain financially healthy.
8. Remember that real estate markets are volatile
Are your strategies falling flat? Perhaps you’re frustrated by high housing costs? All is not lost. Remember that real estate markets often experience peaks and troughs. If you wait a few more months or years, the market will likely swing back to become a buyer’s market.
9. Find a top real estate agent
Working with a real estate agent genuinely committed to helping you find a home will boost your chances of success. Don’t assume that every real estate agent will go out of their way to represent you and help you navigate the market. Try to find an agent who seems professional, friendly, and responsive.
Fortunately, you don’t have to look very far with Maui Showcase Properties. We are a friendly bunch who always put our clients first. Get in touch today if you’d like to discuss your requirements with an expert.