Oahu Real Estate Tips - Part 2
More of What You Must Know Before Buying An Oahu House/Condo
No Matter Where You Are on Oahu, Know the Flood Situation
Hawaii, especially Oahu/Honolulu, is best known for its sunshine. What isn’t as well publicized is the rain. One well-known exception is the 43 straight days it rained in early 2006. The resulting floods were responsible for the great tragedy on the island of Kauai. But its effects were felt everywhere. On Oahu houses were flooded in some cases not one, not twice, but repeatedly during that streak.
Even this writer, who lives in a high-rise, was directly affected. My car, parked on a street nowhere near an official ‘Flood Zone’ , had its interior penetrated, submerging library books that were on the floor. Luckily the Hawaii Public Library System is very understanding. Compared to what others went through, though, this was nothing. But it’s an important lesson.
Flooding does happen even in less extreme conditions, especially in certain areas. Parents of one of my friends live in Manoa, an area famous for how often it gets rain. Like most long-time Manoa residents, the parents’ home is elevated off the ground. The ground floor, in other words, is actually a foot up from the dirt. Unfortunately, their neighbors’ new home is not.
The rains came one night. A night that the neighbors were spending out with friends. As the rain continued and the water began to flow, a small river formed. As planned, the river flowed right past my friend’s parent’s house…and down the slope of the land straight to the neighbors’ front door. Without bothering to knock, the water flowed into the house and caused thousands of dollars in damage.
Know the lay of the land, research possible flood avenues around your Oahu home, look into the history of where you are on the Island. It will be time, and money, well spent.
Oahu Real Estate Closing Costs – the Silent Budget Killer
Remember, when you settle on the price for your new house/condo, that’s not the end of the show. Neither is it over when you decide on a down payment. It’s not over until you figure out the Closing Costs. This final detail has the power to kill a deal. Why? Because they can be as much as 3%-4% of the sale price on top of the price you’re paying for a house or condo on Oahu. This depends on if you chose to pay points for your loan. Ask these questions at the time you meet your realtor and when talking first time to your loan broker. And ask for good faith estimate from your loan broker, so you have an idea what is the out of pocket cash needed when closing the deal.
Remember you may also negotiate with the seller to pay your closing cost, specially in down turn real estate market (buyer's market) or if the seller is motivated to sell for personal reasons. Remember that as a buyer you still have some expenses to take care of, as an example normally you pay as buyer for the home inspection, or any further specialized inspections.
The good news is that, as of this writing, prices for Hawaii real estate are cooling off just as it is on the mainland. Ask me to watch the market or specific neighborhood for you and keep you updated. In some areas it seems that the sold houses are coming down but they are not. Most folks and media confuses sold houses median price with the down pressure on the listing prices. In some areas the prices are coming down slowly.
Still, every little bit helps. But that little bit isn’t any good if you don’t have those Hawaii Closing Costs in mind the entire time you’re looking at houses and condos. And keep it in mind when negotiating the price, too. Don’t let go of that extra money you’ll have to pay until you’ve signed on the dotted line.
Go on to Part Oahu Real Estate Tips, Part III
Contact me to start looking for your new Oahu house or condo. I'll be glad to hear from you!
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