Can you believe it’s already here? It seems like 2011 has flown by, and here we are upon a new year, 2012.
The drastic decline in area values has finally slowed down now, making it very affordable. However, the inventory levels are declining, according to the most current Maui Board of Realtors’ statistics. The single-family home inventory is down 19 percent, condominium inventory is down 20 percent and vacant land inventory is down 13 percent for December of 2011 versus December 2010.
Have you been considering purchasing a place for you to call home or for a rental investment property?
There are several bank-owned properties here in West Maui that are very affordable.
What does “bank-owned” mean?
A bank-owned property is one that has gone through the complete foreclosure process and is now property of the bank.
These properties have insured title, are vacant for easy viewing and can usually close in 45 days or less!
Bank-owned properties are, in my opinion, the best deals on the market and the easiest to work with. If you see a property you like, you most likely can buy it provided your offer is the best.
How do I get the current bank-owned property list?
Click on the “REO” button on the home page of MauiRealEstateLLC.com or call me directly at (808) 357-4782.
Almost every property is vacant, so you can feel free to drive by and see if you like any particular property. (No one is going to come out the front door and bother you!)
Call for showings; please allow one to two hours advance notice to verify the lock box codes and make sure the property is not yet under contract.
How much can I save buying a foreclosure?
How much you save depends on the bank valuation, usually done with a Broker Price Opinion (BPO). A local broker is assigned to arrive at a 30-day Quick Sale Value; the price at which the broker believes will get the property sold in 30 days or less.
This is typically 20-40 percent off the retail price of other homes in the area
How about property condition? Can I do an inspection?
Property condition can vary greatly from property to property. You can do a walk-through inspection prior to making any offers. Because these properties are priced to move quickly, I advise my buyers to make your offer with the “Inspection Contingency” usually within 5-10 days after acceptance of the offer.
This way, you can get your offer accepted before paying for a home inspector or contractor to thoroughly inspect the property.
What do I need to make an offer? Do I need all cash?
Offers can be made with a mortgage or all cash. Some properties may have to be cash if the condition is poor; others will easily qualify for a mortgage.
You need the following to make an offer: proof of funds (bank statement, 401k, investment account statement); Mortgage Pre-approval Letter; and deposit – usually 1-2 percent of offer, an amount that is only deposited to escrow after acceptance of your offer.
How much should I offer? Should I make lowball offers?
Your offer should be no more than you are willing to pay! I can suggest offer amounts based on my experience, but ultimately it’s your money.
Lowball offers rarely get accepted, as the bank has already priced the property well below market. But if I represent you, I present all your offers to the seller regardless of the amount.
Ok, sounds great. When can I see some homes?
To see homes, I first need to know what you’re looking for!!! Please call me at (808) 357-4782 to discuss your needs and the price ranges.
Almost all of the properties are vacant, on a coded lock box, so it is quite easy to see five or more in one afternoon. In fact I encourage you to request multiple showings the same day, so you can get a real feel for what is out there and which properties are worth further investigation.