Buying a home in Hawaii is the closest you can get to living in paradise. The warm weather and gorgeous people make it more appealing to board a plane and fly across the Great Pacific. As enchanting as the Aloha State is, purchasing a home there is not as simple as it appears.
We have emphasized factors that every buyer should consider while purchasing a home in Hawaii. If you want to own property in Hawaii, you’ve come to the right place.
Guide for Buying A Home in Hawaii
Hawaii’s home market is expensive. Owning a home in Hawaii is a significant investment under normal conditions. The pandemic has pushed Hawaii’s real estate market into overdrive. It is not uncommon to have ten or more buyers contending for the same property this year. Bidding has become the name of the game, with cash buyers gaining an advantage over their rivals.
The DOM of a home is 87 days as of December 2021, with houses in Pearl City selling for only 34 DOM. In contrast, properties in Li hue, Kauai, can stay on the market for up to 214 days. However, it could be related to the island’s average home price reaching the million mark.
Things To Know Before Buying a Home in Hawaii
Buying a home in Hawaii is exciting, but it is not easy. Compared to property purchases on the mainland of the U.S, the process is harder. For one thing, most people find it tough to examine properties due to their location. Traveling is expensive and impractical, even if it’s not in the midst of a global health crisis.
Houses on the market are pretty expensive, worsened by the pandemic. Experts estimate a 6.6 percent increase in home sales by 2022. Whether you have enough cash for the purchase, convenience will be one of the most complicated hurdles.
Before you go out and buy a house in Hawaii, here are a few things you should know about it.
i- Seller Disclosure While Buying A Home in Hawaii
The law states no residential property sale is possible unless accompanied by a signed disclosure. The seller must sign the paperwork six months before the sale and within ten days of the buyer’s acceptance. It must be delivered to the buyer within ten calendar days.
The buyer gets 15 days after receiving the statement to go over before deciding whether to withdraw or proceed. If the buyer wishes to cancel the transaction, they must do so in writing within 15 days.
ii- Real Estate Lawyers
Because of the nature of Hawaii’s market, the state has special rules in place for transactions. Its island setting has an impact on the real estate market. It’s advised that anyone engaged in the deal develop plans for sudden events. Having a lawyer on board may assist numerous worries and inquiries. Moreover, the lawyer will handle various legal issues that may emerge throughout any transaction.
iii- Presence at Closing
The epidemic has resulted in various travel limitations and restrictions. Purchasers in Hawaii inquire whether they need to be present for the closing.
The real estate sector has become accustomed to operating in a virtual environment. It is the industry that had undergone the digital shift before the pandemic. Therefore, they were using digital platforms in transactions.
Second, one of the best things about buying in Hawaii is being an escrow state. The escrow department of the title business you are working with handles essential documents and funds. Both the buyer and the seller are not required to be present at the time of signing. This makes it easier for people to purchase a home in Hawaii.
iv- The Best Cities For Buying A Home In Hawaii
It’s no secret that investing in real estate in Hawaii is costly. It may discourage some purchasers from entering the market. The cities listed below have a high potential for cash returns.
- Average Property Price: $894,400
- Average Price per Square Foot: $500.44
- Days on Market: 37
- Traditional Rental Income: $3,442.01
- Traditional Cash-on-Cash Return: 2.96%
Ewa Beach, Honolulu
- Median Property Price: $842,321
- Average Price per Square Foot: $586.77
- Days on Market: 37
- Traditional Rental Income: $2,684.79
- Traditional Cash-on-Cash Return: 2.56%
- Median Property Price: $654,403
- Average Price per Square Foot: $557.05
- Days on Market: 48
- Traditional Rental Income: $2,119,87
- Traditional Cash-on-Cash Return: 2.71%
- Median Property Price: $1,549,107
- Average Price per Square Foot: $1,073.10
- Days on Market: 56
- Traditional Rental Income: $3,356.55
- Traditional Cash-on-Cash Return: 1.7%
Purchasing a home in Hawaii is more difficult than acquiring a property on the mainland With smart investment strategies, buyers and investors can reap significant financial advantages. The trick is approaching with forethought and connection with the proper people. Investors require all the assistance they can receive to make the best selections.
Regentology real estate expert partners can help you save thousands of dollars on your dream house. You need a real estate agent that knows the area and is a skilled negotiator. Our agents make the buying process as simple as possible so that you may begin the process feeling confident. Our objective is to understand your needs and budget while remaining available to help you along the journey. Begin your search for your dream house now with a FREE consultation from the finest real estate agents in your area.