Haiku is a small town that rests on the North Shore of Maui some 14 miles east of Kahului. Between its local surfing scene and lush tropical greenery, it’s a great community for people who want some distance from the bustle of urban life as well as Maui’s busy tourist hotspots.
Plantation-style houses, grand villas, and modern tropical homes make up the majority of real estate options in Haiku, Maui. Each of these property types promises a different living experience primarily because of where they are often found.
Small to medium-sized single family homes are mostly concentrated along the town’s main thoroughfares–Haiku Road, Kauhikoa Road, and Kokomo Road. Meanwhile, most of the bigger lots and estates rest on the town’s side streets or on larger parcels of tropical forest and grassland, which are somewhat removed from Haiku’s centers of activity.
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HOW TO FIND THE RIGHT PROPERTY
If you’re exploring real estate in Haiku, Maui, it’s important to choose a home that complements your lifestyle, fits your budget, and provides a comfortable living environment.
Buying property is a major life event that will largely dictate your day-to-day living and financial situation for years. It’s one of the most significant investments you’ll ever make, so finding the right one is crucial to ensuring that your investment pays off both financially and emotionally.
Take the time to carefully assess your options and follow a structured process to increase the chances of finding a property that you’ll love for years to come. This article outlines the essential steps to get this right, with an emphasis on assessing the property features.
1. Check your financial situation
Before you begin searching for properties, first assess your financial situation. This will help determine how much home you can afford and guide you in setting a realistic budget. Consulting with a financial advisor or mortgage broker can provide clarity and help you create a financial plan.
Review your savings, income, and outstanding debts. This is a solid starting point that will help you set a budget and inform how much you can comfortably spend on a mortgage each month. Keep in mind that the amount of down payment you make impacts your monthly mortgage amortizations and other mortgage terms.
Check your credit score. Lenders will use your credit score to determine the interest rates and mortgage terms to offer you. A higher credit score generally leads to more favorable loan terms, potentially saving you thousands of dollars over the years.
2. Set a budget
Once you’ve assessed your financial situation, set a budget for the property purchase. It should be based on what you can afford and not just what you qualify for in a mortgage. There are both upfront costs and regular homeownership expenses to account for.
Upfront costs may constitute the following:
- Down payment: negotiable, but the standard is 20% of the home’s listing price
- Closing costs: Approximately 2% to 5% of the home price
- Potential renovations or repairs on the home
- Home inspection fee: typically $400 for a small-single family home in Hawaii
- Appraisal fee: $350-1800 to determine the home’s market value
- Title insurance: between 0.5% and 1% of the purchase price
- Moving costs
Homeownership expenses are regular costs you incur to maintain the home in addition to your monthly mortgage. These may include:
- Property taxes
- Homeowners association (HOA) fees (if applicable)
- Maintenance
- Utilities and services
- Furniture and appliances
3. Hire a real estate agent
Hiring the services of a real estate agent is one of the most valuable steps you can take when searching for real estate in Haiku, Maui. An agent with extensive experience in the local market has a deeper understanding of the community and its market trends. They can also advise about neighborhoods that will likely meet your needs and give you access to off-market listings that don’t show up in an independent search.
4. Determine your must-haves and nice-to-haves
Before you start your search, it’s important to determine what you’re looking for in a home and distinguish between what you need and what you want. Create a list of must-haves or your non-negotiables. These could be the number of bedrooms, proximity to a school, or a specific amenity like a spacious kitchen or smart home security system. This way, you can systematically eliminate options that don’t meet these criteria.
In addition to your must-haves, it’s also helpful to list down your nice-to-haves. These are desirable features whose absence isn’t necessarily a deal-breaker. For example, you might want, but not need, a swimming pool or a mid-century modern house. Clearly differentiating between your must-haves and nice-to-haves will help you avoid buying a property that’s priced beyond your budget or doesn’t meet your basic needs.
In creating these lists, take your lifestyle and long term goals into account. If you’re a couple planning to have a child, you might want to prioritize larger square footage and being close to a school. If you’re searching for a retirement home, consider looking for single-story residences or properties with accessibility features.
5. Attend open houses and go to home viewings
Once you know your budget and the home features to look for, it’s time to start visiting properties that fit your requirements. Open houses and home viewings are an excellent way to see if a property meets your expectations or if it just appears good on pictures. When it comes to truly understanding how it would feel to live in a space, nothing can replace the experience of physically exploring the property yourself.
When attending an open house, take the time to examine the home as closely as you can. Pay attention to the layout, the condition it’s in, and any potential issues that might need addressing. If you can, it’s a good idea to visit the property at different times of the day to observe how the light changes.
It also helps to bring a checklist of items to note during your visit, ticking things off as you go along:
- Appliances: Are they updated? What condition are they in?
- Cabinets: Is there ample space in the kitchen and bathroom cabinets? Inspect drawers and/or cupboards directly under sinks for any water stains or mold. These could be a sign of plumbing issues.
- Ceilings: Look out for sagging or peeling paint, light brown water stains, a damp smell, or other indicators of water damage.
- Electrical outlets: How many are installed and are they in convenient locations?
- Light switches: Do they all work?
- Outbuildings: If the property has outbuildings like a shed, garage, greenhouse, and others, don’t hesitate to inspect these structures as well.
- Landscaping: Check if the yard is in good shape. How much work has to be done to restore it to prime condition? Landscaping can cost a hefty price.
- Room size: Do all rooms have enough space to fit the furniture you expect to put there?
- Storage space: Do the closets hold enough space to store your possessions? Are these closets accessible and conveniently located?
- Windows: In what direction do the windows face and what environment do they open up to? Will you enjoy the views they offer? Do they allow in good amounts of sunlight? Check the windows’ structural integrity by pulling back the curtains and inspecting the frames. Slide or unlock a few windows to ensure that they open and close without a hitch. If they jam in the frames, this indicates either poor installation or larger foundation problems. Both may require an expensive fix.
- Flooring: Issues manifest a little differently in hardwood, laminate, carpet, and tile flooring.
- Hardwood
- Gaps: Small gaps are a normal occurrence but bigger ones may be a cause for concern. Larger gaps can result in heat exchange between the home and the outside, leading to reduced energy efficiency. They also compromise the floor’s structural integrity by causing the floorboards to shift.
- Cupping and crowning: Cupping occurs when the board’s edges are higher than the center, and crowning is when the center is elevated over the edges. The most common cause of cupping and crowning is moisture trapped under the floorboards.
- Buckling: This takes place when the floor is completely lifted in a section or a few parts of the board. It’s a more pronounced reaction to excess moisture underneath the flooring.
- Finish problems: Finishes with peeling or debris indicate a hastily done job where rubble wasn’t thoroughly cleaned before application.
- Laminate
- Gaps: Similar to hardwood, gaps in laminate flooring are likely due to improper installation conditions. Aside from the previously mentioned consequences, large gaps trap dirt and debris which make cleaning more difficult and can damage the finish.
- Buckling: Laminate flooring is more prone to buckling than solid hardwood.
- Peaking: This takes place when individual planks push each other and force the joints to be lifted.
- Carpet
- Bubbles or humps: These are signs of improper installation. Professionals use specialized equipment like power stretchers to spread the carpet across the floor. When properly done, the carpet surface is flat and even.
- Seams and transitions: Carpets should be well fitted with tightly adjoined seams. Transitions between carpet and hardwood or carpet and tile should appear neatly tucked.
- Gaps around edges: These aren’t necessarily a bad thing as a carpet naturally shrinks with age. However, if the listing says the carpet is brand new and you see gaps around the edges, that’s an inconsistency you should note.
- Tile
- Looseness: Tiles can come loose due to heat and humidity, which can degrade adhesive, or because the floor itself has moved.
- Cracks: There may be cracks that may not be apparent from a higher angle. Consider hiring a home inspector to take a closer look at the flooring.
- Degraded grout: Be on the lookout for holes, gaps, and cracks in the grout. Damaged grout can cause tiles to withstand the full impact of foundation shifting and indoor traffic, resulting in them cracking. It’s much less expensive to replace grout than it is to install new tiles.
- Hardwood
- External features: Observe the following in a home visit:
- How busy the street is at different times of the day
- Which way the property faces
- How inclined the block is
- The home’s neighboring properties, and a few other environmental features to be discussed later
Make a checklist and take down notes: Remember your list of must-haves and nice-to-haves and tick them off as you walk through the property. Take note of the different items listed in the previous section and jot down what you liked and didn’t like immediately after inspecting. You might be viewing multiple homes, so a system of notes and checklists can help jog your memory later on.
Take pictures: An online listing or brochure has a limited number of photos, and these are likely meticulously curated to showcase the property in its best light. Snap photos of every room, exterior feature, and any issues you might find with the property.
Ask questions: While you’re there, don’t hesitate to ask the agent any questions about the property. Some key inquiries include:
- When was the home last renovated?
- Why did the owner decide to sell the property?
- How long did the seller live in it?
- Has it received any offers already?
- Are there any known issues with the house?
6. Conduct a home inspection
It’s always wise to have a professional home inspection conducted before closing a sale. A home inspection is a crucial contingency to include in a purchase contract, ensuring that the completion of the sale depends on the inspection’s results. If significant issues are uncovered, you and the seller can negotiate who will cover the costs of repairs or improvements. You might request a reduction in the purchase price, a credit towards closing costs, or have the seller take on part or all of the repair expenses. If an agreement can’t be reached, walking away from the sale might be the best course of action.
Your real estate agent can connect you with a trusted home inspector and even manage the inspection process. Be sure to thoroughly review the findings and discuss the next steps with both the inspector and your Realtor.
7. Check the neighborhood
The neighborhood is just as crucial as the property itself, both for your lifestyle and for the long-term profitability of your investment. Take time to explore the community by walking or driving around, and engage with the locals to get a true sense of the area’s character. Ask important questions about factors that could affect the neighborhood’s appeal and future value.
Here are a few key considerations:
- Future developments: What new projects or developments are planned in and around the neighborhood?
- Undeveloped land: How much undeveloped land is there, and what potential projects could be built on it?
- Infrastructure changes: Are there any plans for major infrastructure projects, like a bridge or highway, that could impact the community?
- Zoning laws: What types of properties are permitted under the area’s zoning regulations?
- Home value trends: How have home values in the neighborhood changed over the past year? What factors might be influencing these trends?
- Essential services: Are grocery stores and other essential services conveniently located?
8. Make an offer
Once you’ve found a home to your liking, work closely with your real estate agent to determine the appropriate offer price based on market conditions, the property’s value, and your budget. Your agent can provide insights into recent real estate transactions in Haiku, Maui and help you craft a competitive offer that’s within your financial comfort zone.
Be ready to negotiate since the seller will likely make a counter offer. Stay flexible and be open to compromise on certain terms, but also set clearly defined boundaries to avoid overextending yourself.
9. Close the deal
Once your offer has been accepted, it’s time to close the deal. This process usually takes more than a month and involves finalizing the mortgage and signing the necessary paperwork. During this period, you’ll be working closely with your lender, real estate agent, and ideally a real estate lawyer to ensure that all legal and financial requirements are met.
Before closing on a home, you’ll also have the opportunity to do a final walkthrough of the property. This is your chance to ensure that the home is in the agreed-upon condition and that any repairs or changes have been made as per the contract.
Once everything is in order, you’ll sign the closing documents, pay any remaining fees, and receive the keys to your new home in this piece of paradise.
FIND THE PERFECT HOME IN HAIKU, MAUI WITH DAVID FUTCH
Finding the right property in Haiku, Maui, is a journey that requires careful planning and the right support from local experts. David Futch knows the ins and outs of Haiku’s housing market, facilitating the transaction of land, luxury, vacation homes, and waterfront property on the Valley Isle for more than 30 years now. Call 808.280.9600 or email him here to talk about your real estate plans in Haiku.