Sotheby’s Reigns in Maui Luxury Real Estate

The U.S. real estate marketplace has been truly affected by the recession and continuing worries about the global economy due to concerns of Europe’s future, yet Maui continues to maintain its reputation as one of the strongest long-term equity markets in North America by showing significant signs of improvement. Of particular note is the high end sector of Maui real estate. Affluent buyers are back in Maui again and it has reflected on some very impressive numbers. (more…)

Maui Real Estate: Disclosure

Recently a client asked what needs to be disclosed by the seller in the course of a real estate transaction. In the Aloha State, Hawaii Revised Statue Chapter 508D requires a seller of real property to disclose material facts known to the seller that can be observed from visible accessible areas. Great. But what does that mean?

First, let’s define ‘material fact’. The applicable Statue defines it as “any fact, defect, or condition, past or present, that would be expected to measurably affect the value to a reasonable person of the residential real property being offered for sale.” Simple enough. Armed with that definition, filling out the Seller’s Real Property Disclosure Statement should be a cinch! Except, it isn’t. For example, if somebody died in a home, should that be disclosed under additional facts? To some people, this is critical information which will automatically disqualify that property as a potential purchase, yet to some others it is not a big deal. Or in a question such as ‘Is the property subject to excessive air pollution’, with what metric is ‘excessive‘ measured? Some people may be extremely sensitive to air conditions, vog being specific to Hawaii, hence they would consider ANY level pollution to be restrictive of their enjoyment and, as such, excessive. Furthermore, whether there is a ‘pest problem’ can be open to an individual perceptions. Although a seller may find mice from time to time in a Kula property (which is quite common) and not find it to be a ‘pest problem’, a buyer unaware of overall conditions in that district may find it to be an a HUGE problem. Clearly, interpretation can be very subjective and it could easily be argued one way or the other. Just ask any attorney worth their sheepskin.

As a seller, by disclosing all known material facts in good faith and with due care, it’d present a much stronger position if said disclosure came into question in front a judge and jury. So whether to avoid potential liability or, well, to do the right thing: if in doubt, then disclose it!

Disclosure: The opinions on this post are NOT legal advice. The author is NOT an attorney nor has ever portrayed one on TV. Potential buyers are encouraged to consult experts in the appropriate field (i.e. law, taxes, financial planning, construction, engineering) in order to best protect their interests.

One of the biggest pieces of legislature concerning the foreclosure process is Hawaii’s Act 48, which was implemented in May. Take a moment to read more about Act 48 and how it changed the foreclosure process in Hawaii. There have been a myriad of consequences, some expected by those who crafted the legislation and some unforeseen.

First, Fannie Mae et al quickly adapted by changing their policies, whereby they would be pursuing foreclosures through the judicial route rather than non-judicial. Some critics say that foreclosing lienholders are skirting around what the legislation intended to do (protect homeowner’s rights), but clearly the judicial route was always an option. When there is a traffic jam in your favorite shortcut home, you take the longer way that still gets you there. This should have been expected and is well within the lienholder’s rights to do so. In addition, as owner-occupants are allowed to request mediation on non-judicial foreclosures, this is allowing homeowners more time in their home. Although the intent of this legislation is to allow homeowners (who must be occupants of the property) an opportunity to meet with their lender and try to work out mutually agreeable resolution, it is also clear that many may use this method to stall the process and prolong their stay in their property – presumably without paying mortgage payment during the foreclosure process. Furthermore, with some of the largest lienholders foreclosing judicially now, it has created a logjam in the courts, which were already underfunded and understaffed. This is merely prolonging the inevitable: these distressed properties must be absorbed by the market. Whether it happens now or in 2 years, it is a reality that we have to face.

Act 48 had a noble intent: protect rights of homeowners at a time when lienholders may be hastily foreclosing on properties. However, the implementation of this legislation fell short of its mighty objectives. If you have been impacted by Act 48 or have feedback, leave us a comment.

Wailea Foreclosure Offers Value

As has been mentioned in previous posts, the Wailea real estate market has been resilient to short sales and REO’s, partly due to its affluent residents and the high demand for properties in this area. With only two REO’s (foreclosures) having successfully taken place in Wailea, it is extremely noteworthy when a REO home in this area becomes available. Such is the case with MLS# 349122, a newly listed foreclosure in Wailea Kialoa. This 4 bedroom / 2.5 bathroom property features over 2,200 square feet of living interior on a large lot of over 9,000 square feet. And with a well-designed outdoor-indoor living concept, it allows to enjoy the best that Maui has to offer.

With Hawaii’s Act 48‘s effects being felt on the Maui real estate market, the REO inventory is trickling down and properties that are well-priced are being aggressively targeted by savvy buyers and investors. For those wishing further information regarding this property or other opportunities, feel free to contact Alex at Alex@MauiRealEstateSearch.com or 808.385.5034 any time.

In an effort to better serve our clients/customers, we would like audience feedback:  If you were looking to purchase a property on Maui, what terms would you search for on Google? For example, ‘Maui Homes’, ‘Wailea Condos For Sale’, etc. Please leave a comment below with terms you would possibly use when performing a search, this could be whether you are looking for a Wailea luxury condo, a Kihei home, a Makena beachfront estate, Maui properties in general, anything.

From those who leave comments prior to 07/15/2011, one person will be picked at random and will win a $50 Gift Card  for Amazon.com, courtesy of the Maui Real Estate Search team. So what are you waiting for? Leave a comment, help us improve our services/site, and possibly win a $50 Gift Card!

**UPDATE** The winner of our random drawing is Sheralyn G. Congrats!!!