Right now is a perfect time to buy your first house in Hawaii. With low interests, the first time buyer tax credit, affordable prices and inventory to choose from, there is no reason not to buy your first house in Hawaii.



Keep in mind that it is also a very unique market with its own little quirks of the way properties are priced combined with local Hawaiian customs. Here are some buying tips to help you with your purchase:

Tip 1

Get qualified with a lender. You will want to speak with a mortgage broker or lender to find out what price range you qualify for and to make sure that you get the best loan rate. Try and clean up any debt or negative issues on your credit report first so that it will not impact your mortgage rate.

Tip 2

Decide what neighborhood you want to focus your search on and your price range. Also decide what type of property you want single family home or condo. You can check the Internet to get an idea what Hawaii houses and condos are selling for in the area and look at the pictures of the houses and the various rooms to determine if you are interested in making an appointment to view the house.

Tip 3

Interview a Realtor and find someone you can work with easily. You will want to work with a buyer’s agent who will represent you. The listing agent really works for the seller so you may want to have your own agent negotiating on your behalf. If you live in the area, you can always stop buy a Sunday open house and talk to the different Realtors in the area to see if there is one that you connect with. Or you can always look at different agent websites to see who sells the most homes in the area and is the most knowledgeable about the neighborhood you are interested in.

Tip 4

Drive the areas you are most interested in if you live nearby and concentrate on those areas first. If you live out of state or out of the country, then you will have to rely on the Internet and pictures of the house to begin with until you are able to make a trip to the Islands.

Tip 5

Check the local newspapers ads for properties for sale in the area including for sale by owners. Although sometimes for sale by owners tend to overprice their homes so educate yourself about the home sales in the area so you know what price to offer.

Tip 6

Negotiating in Hawaii is less aggressive than in a big city such as Los

Angeles or New York.  The strong Asian influence promotes more politeness in negotiating here so try not to be too aggressive and offend the seller. Using a local Realtor to help you buy your house in Hawaii is smart because they are familiar with the negotiation process here.

Tip 7

Check with a local accountant or CPA regarding Hawaiian property taxes and homeowner exemptions, especially if you will be occupying the home as a primary residence.

Tip 8

A lot of Hawaiian land is owned by trusts that lease the land to a buyer through a leasehold interest for a specified number of years. This custom dates back to when the majority of the land was owned by a monarchy. The buyer pays property taxes and a lease payment. Most of the leaseholds in Hawaii run for 55 years with fixed rate rents for 30 years. You may be able to get financing, depending on how many years are left in the lease.

Fee simple land is more expensive in Hawaii. The owner owns the land and can pass the ownership on to their heirs. Before you buy your first house in Hawaii, make sure you understand the difference between a fee simple interest and a leasehold interest.

Tip 9

Bring cash with you or open a local Hawaiian bank account because you will need to pay deposits on electricity, water and other utilities. There are Internet and cable services available.

Tip 10

If you are new to the Island and are planning on shipping your car from the mainland to Hawaii, it can be expensive. You have 10 days to register the car and get a Hawaiian drivers license.

Source: How To Buy Your First House in Hawaii

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