Laurelee Blanchard, Realtor

Maui Island

Real Estate News

Volume 2

In this Issue:

Real Estate Market Report

Three Secrets to Buying the Best House for Your Money

The Power and Limitations of the Internet

Coldwell Banker Island Properties

24 Baldwin Avenue

Paia, Maui, HI 96779

Phone:

(808) 298-8544

E-mail:

Laurelee@MauiResidences.com

We’re on the Web!

www.mauiresidences.com

Real Estate Market Report

As of May 31, 2007, there were 517 home sales on Maui, compared with 412 a year ago. The average sales price was $977,011, compared with $988,327 a year ago – a 1% decrease. The median price was $635,000, compared with $705,000 a year ago, representing a 10% decrease. Total dollar volume increased 24% during this twelve month period.

Three Secrets to Buying the Best House for Your Money

1. Get "Pre-Approved"

The way to make the strongest offer is to get "pre-approved" by a mortgage consultant. This process takes anywhere from a few days to a few weeks depending on your situation.

Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.

2. Sell Your Property First, and then Buy the House

If you have a house to sell, sell it before selecting a house to buy! A contingency offer is not nearly as strong as one that comes in with a ready, willing and able buyer.

3. Know Your Priorities

Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the highest score wins! This helps avoid confusion and keeps things in perspective when you're comparing homes.

Pay attention to the things that cannot be changed, such as the location, view, size of lot, noise in the area, school district, and floor plan. Things that are easily changed include surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes.

The Power and Limitations of the Internet

The Internet is a great tool for home buyers, making it possible for them to research homes in other towns, and compare prices, sizes, features, etc., without ever speaking to a real estate professional.

So, why should anyone ever use a Realtor to buy property? One reason is because the Internet can provide data but it can’t interpret it. Realtors study market trends. The real estate profession demands constant market education. Which areas of town are appreciating fastest? Where are properties turning over quickly and where is inventory piling up? Knowing what government or environmental regulations are new or pending can make a difference in a home’s future value.

Realtors also work with appraisers, home inspectors, lenders, and other professionals, whom are additional sources of information.

Home buyers can use the Internet to save time and get ideas. They can eliminate homes that do not meet their needs and explore areas that look interesting. A good realtor will not talk a customer into or out of buying a home, but will make sure it is an informed decision that results in satisfaction for years to come.

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