How Do You Find a Good Real Estate Deal in Hawaii? With A Comparative Market Analysis…
It seems that everyone, or almost everyone, would like to invest in real estate at some point in their lives. Although the current trend tends to be more “cautious” due to recent reductions in values, the silver lining is that property can be acquired at very good prices and bottomed out interest rates.
Deciding when to buy is just the beginning of the real estate investment journey. After that liberating decision, the real work begins—“How do I find the best deal?”
The best ways to determine whether a Hawaii property is a good deal or not is to have your Realtor do a CMA (Comparative Market Analysis). A CMA compares a home you are interested in against similar homes that have sold nearby. In an urban location, with a dense population, a 0.5 to 1 mile radius is more than sufficient. If it is a rural are, that scope may be 1-10 miles. In agricultural neighborhoods where farms are 5+ acres each, your circumference will increase further.
You will need at least 3-5 sold comparables to use in the valuation, so have your Realtor find at least this many. When looking at the comparison, pay special attention to:
- Sold price
- Price/sf living area
- Price/sf land, age
- Year built and especially condition
- Number of bedrooms and bathrooms
By examining this criteria of recently sold property in an area you can get an idea of how properties for sale in that neighborhood are inferior or superior to the comparables. Knowing this, you can come to an educated decision on the value of a particular property, and quickly tell whether or not the home you are looking at is a good deal or not.
If you would like a CMA of a property, I am happy to help.
Kelly A. Lee, (R) e-PRO, CHMS