11 Step Process for Buying in a New Condo Development Project on Oahu
Honolulu is a city that effortlessly marries urban sophistication with the laid-back allure of island living and purchasing a new construction condo here provides a Hawaii lifestyle experience like no other. New condo developments are an amazing option but can be tricky to find out about and sorting through the clutter can be challenging as well. We’ve put together this handy guide for how to navigate the complicated process for you.
1. Go to our New Developments page
Interested in Oahu new condo developments but don’t know where to begin? Finding all of the information about all of the available new projects can be a challenge. These projects are marketed by the individual developers themselves and they’re obviously only going to tell you all about the good stuff. Impartial information balances the equation, thus leading to an informed decision.
For over two decades, we’ve specialized in helping buyers purchase units in Oahu new housing developments, and we’ve condensed all of that experience and information on our New Developments page. It’s a great resource that helps you search current and upcoming projects to get the general lay of the land on all Oahu new developments.
2. Reach out and tell us what you’re looking for
The second step is even easier. Just contact us by filling the contact form below and tell us what you’re looking for. The more information you share, the better we can guide you in the right direction for your needs. Whether that’s enviable ocean views or ultra-luxury amenities that suit your lifestyle, we can steer you in the right direction.
This enables you to be efficient with your time as you browse Oahu's dynamic new development market. We’ve established long standing relationships with some of the best developers on the island, so we’re even able to advise you on options that may not be listed on the MLS yet, making it possible for you to get in on the ground floor of some of the hottest new developments on the island.
3. Consultation to evaluate your options
Once we hear from you, we’ll set up your consultation where you can let us know more about what you’re looking for. We can also answer any questions that you may have about the different new condo projects, neighborhoods, developers, etc. This helps us help you as we can then quickly put together a plan that enables you move through the entire process efficiently and make an informed decision.
We’ll build that plan around the new developments that best suit your unique lifestyle needs. If you’re interested in resale properties as well, we can also combine them with your new development options so that you have a curated list of properties to choose from.
4. Set up a visit to new condo development projects
Once we’ve narrowed down the Oahu new condo developments you’re interested in, we can go ahead and set up a presentation with the developers, whether in-person if you’re on the island or virtually if you’re elsewhere. This will be a full presentation about the finer details.
Our expertise and knowledge of the market provides you with impartiality, so that you can weigh the pros and cons equally before making a decision. The developers are offerring compensation to buyer's agents, so long as we go with you on that first meeting, so you might as well have representation with the top agents in the Oahu new developments market.
5. Get pre-approved with the developer’s preferred lender
Developers will typically have preferred or project lenders that they require you to work with or at least get qualified by one. These are local lenders that the developer has worked out competitive loan options with for that specific project.
This is an important part of the process as it establishes the foundation for you to actually proceed with the acquisition. It signals to the developer that you’ve got the financing secured and are in a position to enter into a contract.
6. Selecting your unit and contracting
After you’ve selected your building and picked out a unit you like best, it’s time to sign the contract on that unit. You’ll typically be required to put 5% down at the time you’re contracting. Our article on how to get the best deal on new condos on Oahu explains everything you need to know.
These new condo development projects take at least a couple of years to complete. As time goes on, the developers raise prices and you'll have fewer options to choose from since all of the best units get picked up during the initial launch. The law provides you with ample time to change your mind and get your full deposit back, so there’s little risk in being proactive.
7. Rescind your offer or move forward
The law guarantees a 30-day rescission period after you’ve contracted. Use this time to study the developer’s public report and consider any other information about the Oahu new condo developments you’ve chosen. You can back out of the contract during this period without any penalty.
Once the 30-day rescission period is up, the contract becomes binding and you're committed to moving forward with it. You’ll typically need to put another 5% down, followed by an additional 10% after 120 days. It’s pertinent to note here that the procedure is different for affordable housing units and will vary by project, which we can guide you on.
8. Wait for construction to finish
This is the part of the process where you can’t do much other than wait. The developer will start construction on the project once they’ve sold enough units to obtain construction financing. The expected handover date will have been communicated to you at the time of signing, but know that it’s not set in stone and delays can be common.
The time it takes to complete construction on the project varies based on the size and complexity of the project as well as other factors.
Related: Our Kaka'ako Development Plans
9. Finalize the financing
You’ll need to finalize the financing close to closing. The developer will then reach out about six months or so prior to closing for updated financial documents and to move forward in completing the financing.
They’ll also want to see the conditional and final loan approval as well as the balance funds in escrow. Keep in mind that the balance funds need to be in escrow over a month or so before the closing date.
10. Pre-closing walkthrough
Prior to closing, the developer will notify you in advance so that you can make arrangements to do the walkthrough. It’s not uncommon for new condo developments to require minor cosmetic touch ups. The developer then works with the contractor to make the repairs and touch ups before handing over the unit to you.
11. Close, get your keys, and move in
The day that you’ve been so patiently waiting for is finally here. After everything is said and done and all of the closing paperwork is complete, you’ll be handed the keys to the unit. Finally, the condo that you booked a few years ago and had been dreaming about is now yours to call home.
Along with the keys, you’ll be handed some additional paperwork that will provide information about setting up all of the utilities as well as the warranties for the appliances that come with the unit. Time to move in and start creating memories in your new home!
Getting Started with Us
This guide has given you a good idea of what it's like buying into a new development project. If you’re looking for professional help as you navigate the Oahu market, contact us today and see how our decades of experience and expertise can make the entire process easier for you.
We specialize in helping buyers find the best new development projects on Oahu and provide a complete concierge service. Reach out at 1-(808) 435-7754 or fill out the form below to request a consultation.