Buyer's Guide

Once you have found the perfect property, it is important to be the first in line or at minimum, one of the first to be notified. To accomplish this, setup a MLS notifications with your preferences – and do this with the local MLS service. A local Realtor® can be of great assistance here. The local MLS service is the first site where the information will be distributed and you have a tremendous number of ‘filters’ that can be configured with the local MLS service – to ensure you’re not receiving properties that really don’t fit what you’re looking for. Nationally syndicated websites are not as powerful or as up-to-date.

Set up the notifications so you (and your Realtor®) are notified right away by email when these properties hit the market. Also consider that many properties in Hawaii can take weeks to be listed once the owner decides to sell due to a variety of factors – typically agents and their brokerages are aware of these upcoming listings well before they hit the market. Also note that some properties will have a preview period (1-3 days typically) before they are active in the MLS. Your local Realtor® can assist with identifying these before they hit the market.

In multiple bidding situations, cash offers are usually first in line assuming competing offers are equivalent. Buyers with financing are always still in the game however and the ‘offer price’ is usually the most important factor sellers consider – especially if the buyer with financing has their documents ready and in order. Be ‘pre-approved’ not just ‘pre-qualified’ – with a lender letter showing you are approved and ready to finance, and ensure you and your lender understands important factors in Hawaii such as ‘Lava Zones’.

 

In fast moving markets, contingencies like appraisals required for financing are also very important. More than a few properties have fallen out of escrow in 2021 due to appraisals coming in too low due the fast moving market. A local Realtor® can keep you advised of listings becoming available due to this and other factors.

- Lava Zones: relevant on the Big Island, many banks will not lend in certain lava zones and it is important to know what these mean and the insurance to have.

 

- Fee Simple vs Leasehold: with much of the island still owned by the State and large trusts, leasehold property is common and securing financing can be complex based on aspects of the lease. Leaseholds can also be more affordable for those wishing to have a farm/gentleman's farm.

 

- Elevation and Climate: The Big Island is comprised of 5 mountains and elevation ranges from sea level to 13,800 feet - and the Big Island has 8 of 13 climate zones found worldwide. Pick the elevation to your preferred temperature zone.

 

- Trade Winds: Like the various climate zones, the winds around the Big Island vary tremendously. Kohala and the eastern side of the island tend to have more wind. Waikoloa is frequently called "Waiko-Blowa" by the locals due to the frequent strong winds.

 

- Solar vs Electric: Electrical costs in Hawaii are the highest in the nation, as much as 3-4x higher than mainland markets. If the home or condo has solar installed, It is important to understand the metering agreement as this can save hundreds of dollars per month in utility expenses.