Trends in Maui Real Estate
Maui's real estate market typically runs in 7 – 10 year cycles. The peak of the last cycle was in the late 80’s- early 90’s. We pretty much bottomed out around 1998, when their we experienced many distress sales, foreclosures & bankruptcies. Since then, real estate has been on the rise and prices steadily increasing. We foresee this continued rise for several years to come.

Normally in a strong market, prices can increase with almost every sale. As properties sell and the inventory decreases, the demand increases and prices are driven up. Many property owners are aware of these trends and choose to hold off on selling while awaiting a better sale price. That’s why now’s as good a time to buy as any. Prices will most likely not drop again for some time.

Though I can personally help you with purchases island-wide, as you might guess, I specialize in Maalaea real estate. If you're thinking about moving to Maui, visiting on a regular basis, or simply looking for an excellent real estate investment, I'd be more than happy to help. Just email me!

Real Estate Glossary:

Agreement of Sale

A written agreement between Buyer & Seller of a promise to purchase the property. The buyer takes possession & is given ‘equitable title’, while the seller retains ‘legal title’. The purchase price is paid in installments over a period of time per the terms of the Agreement of Sale. When the buyer has completed the required payments, the seller then turns over ‘legal title’ to buyer.

 

Ammendment of Lease

A document reflecting a formal change to the original terms of the lease, such as new lease payments or expiration date.

 

Appraisal

An opinion or estimate of the value of a property, usually made by a qualified real estate appraiser.

 

Common Areas

Areas of a condominium designated for use by all residents. Common areas frequently include hallways & stairways, elevators, BBQ areas & swimming pools.

 

Condominium

A form of real property ownership consisting of (1)ownership of an individual apartment unit and (2)an undivided interest in the common elements. The common elements include the land (either leasehold or fee simple), and those parts of the building intended for common use such as foundations, roofs, halls, elevators & the like. Each condominium apartment may be sold separately from all other units.

 

Conversion

The process of transforming a leasehold interest in land to an unencumbered fee simple interest. This is done through a sale by the owner of the land (lessor) to the owner of the leasehold interest (lessee).

 

DROA

Deposit, Receipt, Offer & Acceptance. A sales contract form most frequently used in Hawaii for real property transactions.

 

Expiration Date

The date the lease term will expire as specified in the lease agreement. The lessee’s right to possess the property will end on the expiration date unless the lease is extended, the lessee purchases the fee interest or other arrangements are made.

 

Fee Simple

The highest degree of ownership in real estate recognized by law. When a fee simple property is purchased, the ownership includes, not only the improvements but the land as well.

 

Ground Lease

A lease of land only, and not the buildings or improvements constructed on the land. Ground leases are usually for a long term of 55 years or more. Fixed lease payments, renegotiations of fixed payments & expirations of leases vary with properties. Typically, ground leases provide that the land reverts to the lessor at the end of the lease, including any buildings or other improvements on the land.

 

Improvements

Buildings or other permanent structures or additions attached to the land.

 

Lease Rent

Periodic rental payments for the right to use & occupy the property. The lease rent is specified in the lease agreement.

 

Lease Term

The length of time, as specified in the lease, during which the lessee may rightfully use & occupy the leased property. A lease term typically has a term of 55 years or more.

 

Leasehold Interest

The rights & obligations of the lessee in the property as controlled by the lease agreement.

 

Leasehold Property

A property held under the terms os a lease agreement. The holder of a leasehold interest (lessee) usually pays the owner of the leased fee interest (lessor) a stated amount of lease rent over a specified lease term in consideration for the right to use & occupy the property.

 

Lessee

The person to whom property is rented or leased. The lessee possesses the right to use or occupy the property in return for the payment of rent over the term of the lease agreement.

 

Lessor

The person who rents or leases property to another under a lease agreement. The lessor retains an interest in the property called the leased fee interest.

 

Market Value

The most probable cash price a property would sell for on the open market given a willing buyer & seller, neither under abnormal pressure, both being fully informed & given reasonable time.

 

Renegotiation of Lease Rent

The review of lease rent, per the terms of the lease agreement, after a specified period of time to negotiate the new lease rent payments.

 

Right of First Refusal

The right to have the first opportunity to purchase or lease real property. A right of first refusal might give a lessee the right to purchase the lease fee interest, if it is offered for sale. More common is in the case of a buyer making an offer on a property, in which they have placed contingencies that they are waiting to remove.

 

Surrender Clause

A provision in the lease which describes what will happen to the property, including improvements, when the lease term ends. Since all leases may have different provisions, it’s important to obtain, review & understand the lease before purchasing a leasehold property.

 

Unemcumbered

A title to the property that is free & clear of encumbrances such as leases, restrictions, mortgages & other liens.