Congratulations: You’re ready to pull the trigger and make an offer on a property on Maui. We can make it very easy for you but we’d like to give you a few tips that should be considered before taking this important first step in realizing your dream of owning on Maui.
The contract begins with this simple statement:
THIS PURCHASE CONTRACT BECOMES A LEGALLY BINDING CONTRACT FOR THE PURCHASE OF REAL ESTATE UPON EXECUTION BY THE PARTIES. READ IT CAREFULLY.
With that in mind, you need to work with a competent Realtor to make sure you understand exactly what everyone’s responsibilities are in the transaction. Once your agent gets some basic information from you, he or she may prepare a contract for you to present to a seller. You need to sit down and discuss each and every detail of the contract. If there is anything you don’t understand, ask. If there is anything they cannot explain well enough for you, ask to speak to their broker.
You will need to make an earnest money deposit to begin with. After certain contingencies have been met, you may even put in a second deposit. Finally, you will come in with a cash portion of a down payment or all cash at closing. Let your agent know if there are contingencies on your obtaining the funds. Even if you are selling stock or getting a HELOC, let them know so he can protect your interests.
If you are getting a loan, see your lender early and plan on giving them a lot of data. Our suggestion is always to work with a local lender as they understand our properties better than those on the mainland. You have a certain amount of time to qualify for your loan and if you don’t do things in a timely manner, you could lose your dream property.
Hawaii law demand the seller give you a property disclosure. Try to obtain this as soon as possible. You want to know what the seller says about the property. If the seller misrepresents something, you will have recourse. You want this even before you have the home inspection we recommend so that the inspector knows if there are special areas of concern.
Be aware each contingency in the contract must be completed on a time schedule by the buyer and the seller. Failure to meet the dates could result in the contract being canceled. If you cannot meet a date, you need to ask for an extension. If the seller cannot meet a date, you need to determine if it is in your best interests to work with them.
The most important thing is to have an agent you trust working in a highly professional and well respected company. In a company such as Coldwell Banker Island Properties, in addition to your agent, you also have a cadre of experienced brokers guiding you and the agent through the transaction. With us, you’ll be in good hands.
You’ve got a great team behind you who will not only follow your direction but give you counsel when needed. Let’s get started!
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