Maui Real Estate

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Preparing Your Home for Staging

staging 123

So you have decided to put your house up for sale.  Just as you feel happy living in your home, putting your house on sale also requires other people to feel the same. This means that you have to dress your home appropriately for the occasion.

One of the turning point home selling is staging. This is where people will come in to your house and personally see whether they like it or not. When you show your house, you want prospects to feel as welcome as possible, and to stay for as long as likely to develop an emotional connection to your house and homily feel.Screenshot_18 If you need to sell your home fast, here are some low cost strategies for staging a Maui home.

Show it off – A huge number of buyers by homes based on emotion. “How a home feels” is more of a controlling factor that just a real estate statement. So what you are going to do first, is to clean your house. Revitalize your landscape, dust your bookshelves, and make some minor repairs in your kitchen, including the counters, bathroom tiles, and closet. When extremely necessary, replace the air-conditioning unit or heater and repaint the walls. Give your house a homily feel for everyone.

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Keep buyers focused – Remove collections such as ceramics, teddy bears, and figurines that might distract your prospect’s attention. Remove family photos and keep them somewhere safe. There is a possibility that your buyer might have some traumatic connections with some of your collection that will stop them from buying your house. But if you have had a background check on your buyers and find that they have kids, you can keep the collection in place, and probably earn $20,000 more than the sale price for such valuable collection.

Demonstrate a purpose. Place your furnishings and accessories in the
right place, so when prospects come in, they’d eventually know which part of the house is for what purpose. Rearrange items in the room and fill in odd spaces. stage 4

Take off any blinders. We become immune to the thing in the house we see every day, which is why it’s hard to determine which is good and bad. At this point, it is wise to invite your realtor to come and take a look at your surroundings and tell what stands out, both positive and negative.

Remember this “your house is a showroom”. Soon, your house will no longer be yours and it is during staging, that you are going to show off why your house is worth buying. In this fantasy world of home staging, you need to take all items that you don’t want prospects to see. Ex. Dog dishes, trash bins, and toothbrushes.

The goal here is to make everything look more spacious, more organized, warm, brighter, and homey. Once you have achieved that, you will be more than ready to welcome prospects in your house.


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How to Secure Mortgage the Smart Way

Mortgage 2Getting a housing loan is kind of heavy. You cannot expect the trip to be smooth, especially if it is your first time. As with most big decisions, you need to start from small steps. So if you have decided to secure a mortgage, here are some smart tips you can take into consideration to get you on the right track.

Budget Wisely. First and foremost, you need to assess the type of home and mortgage you can afford.  Search around Maui for the kind of the house you want and compare the prices to get a ballpark figure. The following are the things that you should take into consideration when planning for your budget.

  • Income
  • Monthly debts
  • Estimated cost of living expenses
  • Amount saved for a down payment

MortgageDecide on the Mortgage Type. When you’ve figured the type of home you want, you will eventually know what kind of assistance you need, including the loan you are eligible for.  You might also want to ask yourself if you qualify for the following.

  • A military veteran? Consider a Department of veterans Affairs (VA) loan.
  • A first time homebuyer with good credit? Consider a first time home buyer loan via the Federal Housing Authority (FHA). FHA loans require only a 3.5% down payment and typically come with good interest rates.
  • Looking for a mansion? For really expensive homes you would want to consider a jumbo loan.

Above all this, when you agree for a sale price of the home, remember that it isn’t really the true cost of owning one. So you need to look at the monthly mortgage amortization schedule to see the total amount of principal and interest you will pay. For example, if you are borrowing $250,000 for 30 years at 4.30%, it will cost you around $445,384. To check, you can use some online mortgage calculator to estimate your payments over the life of the loan.

Mortgage Broker or Lender?There are two ways you can find a loan: seeking help from a mortgage broker or dealing pay-to-paydirectly with a lender. If you go with it alone you will probably get lost in the middle of doing all the legwork. The risk is that, you might end going from one lender to another, comparing rates – this is just a waste of time.

Mortgage brokers typically charge 1% to 2% of the loan amount but they can help explain to you which type of mortgage suits you best, and help you do the leg work as well.

Lenders will help you get a loan (but don’t expect it to be a 100% financing), depending on your situation. Your lender is a not a good judge though in assessing how much you can affords. Banks only focuses on how to maximize their business. Make sure that when you take a loan, you don’t overextend yourself.

WomanPaperworkAssess your credit standing. Now it is time to check your credit report. Lenders in Maui typically requires an annual credit report, which you can obtain from your company there are also some lenders that don’t.However, a bad credit does not automatically make you any less. It is just one factor which may affect how much loan you can take.

Get your paperwork together. Since you have decided to secure a mortgage, it is time you arrange some pertinent documents.  Be extra careful with your finances and have everything you need to back up the numbers. The following are some of the most important documents you may need.

  • Government ID
  • Tax returns
  • Income statements
  • Proof of all assets

Get pre-approved. Pre-approval is not a guarantee that your loan will beAAEAAQAAAAAAAAJNAAAAJDQwMGUwMWNlLWM2ZDUtNGZhMS05MTQ4LTM0NDA2YzM3MDJhNQ considered. It helps you know what you can afford based on your income, credit score, and current lending condition. So consider it as diploma of the mortgage process. To ensure you get the best deal possible, it is highly recommended to go at least three lenders.

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The  Pros and Cons of Short Term Home Rentals

house-for-rentFor many of us, taking off for a holiday provides much-needed balance between life and work. Yet having to deal with high mortgage payment means that many of us cannot afford to leave without having some tenants to make up for the expenses.

Nowadays, renting a room to a tenant for a short a period of time is no longer uncommon in Maui. People come and go even if it is not vacation, and in truth these people aren’t staying for long. So they need a place to stay for a couple of days that is not as expensive as the hotels along the bay. That’s when you offered your house to the short term rentals market.

Before opening your house to strangers, here are some ups and downs that you would want to know about the business.

Advantages of Short Term Rentals

earn-more-money-this-year-800x453Earn Supplementary Income. When you open your doors to short term tenants, you are grabbing the opportunity to earn extra income.  A studio type apartment usually cost around $79 to $150 per night depending on the location. A huge house with one bedroom basically costs around $150 to $229 per night. Bed space or bedroom alone cost below $100. From these rentals, you can use what you have earned to pay your bills and mortgages or cover the cost of your vacation.

House-sitting opportunity. If you are in a vacation, getting some tenants will not leave your home empty. While you are away someone could take care of you house. To steer clear from possible damages and ensure compliance, you can offer a lower rental rate subject to the condition that the tenants should maintain the house.

Meeting New People. That stranger renting in your house could become your family. Especially if you are renting only a section in your, there’s a high possibility that you’re going to get along well together with the whole family as time flies.

Disadvantages of Short Term RentalsNo-Rent-Logo

Loss and destructions. Some risks are associated in renting your house for a short time and you need to be ready with these, when you make your decision. This time you are letting a stranger into your house. In one way or another, your tenant may get access into your own belongings or let a third party enter your house. Your house is also expose to perils such as fire incidents and many more.

No insurance coverage. Before renting out your own home, make sure that you have insurance coverage and third person liability coverage. This protects you from contingent events that may occur while you are away.

pay-to-payProhibition against short term rentals. Just because it’s your own doesn’t mean, you are free to do anything with it. You still need to check with your local homeowners association whether they allow short term rentals. If the policy does not allow it, you may not be able to rent your property.

Nevertheless, short term rentals is not bad all.  A possible solution to the potential risks is for homeowners to leave specific instructions for their renters. As much as possible, talk to your tenant sincerely and give ground rules on the type of behavior expected by the neighborhood. Homeowners can also ask for advance cleaning deposit   to reduce the bad impacts of potential damages.