Milowai Condos Maui For Sale: Few Things To Consider Before Buying
Looking for the ultimate Milowai condo sale? Discover a selection of huge vacation rentals in Milowai that are perfect for your trip. Whether you’re traveling with friends, family, or even pets, Milowai Condos Maui For Sale has the best amenities for hanging out with the people that matter most, including swimming pools and private pools. In Hawaii, every condominium development is required to have an AOAO (Association of Apartment Owners). The association is comprised of the condo owners who are responsible for running and maintaining the condominium complex. So, when you become an owner, you get a vote in how the complex is managed and you have some responsibility for maintaining the property. Once you get into escrow, the condo owner, the seller, is required by contract to provide you with whatever condominium documents you request within a reasonable time frame.
The time frame is negotiable; however, we usually request that sellers get the docs to you within 5-10 days. We usually ask for another 5-10 days for you to review the docs. The first thing I look for is the financials, the profit and loss statement, and the balance sheet. If you are not comfortable reviewing the financial statements, have your accountant look them over for you. We’ve received P&L’s with sections, such as the manager’s salary, whited out. We’ve received statements that were 2 years old. Of course, those are exceptions. Usually, the statement will be in order. The first thing to do is to ask your realtor. They probably won’t know the exact answer but should be able to give or at least get some basic answers. Even though you get the basic answers, you still need the details. You won’t get the details until you’ve made an offer that has been accepted and you get into escrow.
Next, you want to see the budget. Again, if you are not comfortable with budgets, get your accountant to look it over. You are looking for reasonableness. In order to determine how reasonable these numbers are, it will be helpful to have the Reserve Study. The Reserve Study tells you the useful life of capital items such as roofs, pools, parking lots, etc. They also tell you the estimated replacement cost for those items and tells you how much money should be held in reserve. By law, condominium developments in Hawaii must choose one of two methods for establishing reserves. They are required to hold either a minimum of 50% reserves determined by the reserve study or the so-called cash method which means they will have enough cash in the account to cover capital expenses in the upcoming year. Many realtors and buyers rely on the law. However, it is not all that unusual to find that development is under reserved.
Being under reserved doesn’t necessarily mean you should reject the property, but you should proceed with caution because the lack of adequate reserves can result in an assessment or cause some needed maintenance to be deferred. Milowai condos in Maui, Hawaii is our specialty. Our team is committed to making the buying and selling of condos in Milowai, Wailuku Hawaii a pleasurable and rewarding experience. Our website allows you to search all active Milowai condos for sale. It is easy to use and navigate through property searches. You can also save searches and get daily email alerts of new listings as they become available.
Contact us at 808-866-6593 for more information or to schedule a consultation with Hawai’i Elite Real Estate today!