In todays market most Kauai Buyers are looking for a house already built rather than purchasing a vacant lot and hiring a Kauai contractor. There are many reasons for buying a preexisting house but there are reasons and also benefits of buying vacant land and building. Below is a list of pros & cons for each category.

Buying an established Kauai house:

Pros:

1. Able to move right in.
2. More and flexible financing programs offered by a variety of lenders at a better interest rate.
   

   This home needs some work

3. Landscaping and grounds are mature and established.
4. Less time and hassle required versus building.

Cons:

1. The house or its components,( i.e. roof) has a shorter economic life than a new home.
2. The floor plan or interior design may not be well suited for you.
3.  The home may have a worn feeling and need updating.
4. It may feel like someone else’s house.

 Buying Kauai vacant lot and building:

Pros:

Julie in 1987 pounding some nails on the sub flooring.

1. Everything is brand new.
2. Home is suited to your tastes & style.
3. Home has a longer life span.
4. Time equity is almost always earned. Once the house is completed the home may be immediately worth 5% to 20% more than what you paid for the lot and construction package.

Cons:

1.  A lot more time, attention to detail, & stress are involved.
2.  Even though you paid your contractor, unpaid subs can put a mechanic’s lien on the home.
3.  Unexpected problems and costs can come up.
4.  You can’t move in right away (until the house is built). Finance buyers may have to pay rent and interest payments on their loan at the same time.
5. Financing is usually short term. You need to refinance once the house is completed

Building on Kauai:

Plans: Once you have purchased a vacant lot or acreage their are number of steps you need to take before you start building. The best first step is to have plans. You can go to a licensed architect or a draftsman. However all plans need to be reviewed and stamps by a licensed architect before the County of Kauai will issue you a building permit.

Contractor or self build/contract: Once you have plans a contractor will be more willing to talk to you and give you an estimate. Estimates can really range with Kauai contractors depending how busy they are and if they are licensed or not. Some unlicensed contractors keep costs down by not paying taxes, workman’s comp, health insurance etc. I don’t recommend going this route. Issues can arise. Find 2 or 3 licensed general contractors to give you a bid. You can also self contract or self bid. Self contracting involves hiring the framing contractor, the roofer, the electrician, the plumber and all other subs directly. A Kauai home builder can also self build with the exception of plumbing and electricity wiring. Those items need to be done by licensed professionals.

The Details: Even if you have hired a contractor and especially if you self contract, you need check up on the progress. Is the house being built according to plan?  Are those the cabinets you wanted? When my husband and I were building out house in the photo above, my husband hired a drywaller to hang and finish the sheet rock. That particular drywaller put tape on pieces on drywall at the corners. He then did not put any dry wall mud to smooth out the tape edges and just did a light texture spray over the tape. This was not acceptable. We hired someone else to do the mud and finish right. The new drywallers were better. But we had a coffered ceiling in the living room and the mud was bumpy and not smoothed out. It looked sloppy. Luckily my husband wall able to put mahogany trim around the edges to give the ceiling a finished look.

The End: I have a few tips of advise when completing to build your Kauai home:

1. Be sure to get your Certificate of Occupancy
2. Do not pay the Contractor the final payment or withhold $5,000 until everything is done. Even though they are a reputable builder, once you pay in full the priority of any item gets moved down.
3. Do a walk thru and make sure everything is completed and working. The electrician asked me when he was finished if everything was okay. I showed him that the fan was connected to the light switch and the light switch was connected to the fan. He promptly fixed it.
4. File a notice of completion in the Garden Island Newspaper to prevent mechanic liens.
5. Compliment and say “thank you” to your Kauai contractor if they have done an excellent job. They may also appreciate an online review.

In todays fast moving Kauai real estate  market I recommend a third option:

Buyer a Kauai fixer upper:

If you can find a house in the right location that  just needs some work, buying a house and updating it is the way to go. It may be inconvenient and more time consuming than buying the perfect property but it is a compromise when facing tight inventory. Just be sure you are not a sequel to The Money Pit. Hiring a Kauai home inspector would be crucial in buying a fixer, so you know what you are getting into.

Here is the YouTube link to my daughter and my fixer experience.

Sorry the show is now only available on Paramount Plus.

The show is an episode of First Time Flippers. The episode is called  Tropic Blunder.

There are both benefits and disadvantages of buying an established Kauai home or building a Kauai home. While some buyers have the time to build their dream home other Kauai buyers have a very hectic lifestyle and prefer a home they can move right into.  My suggestion is to keep an open mind and just look for the property that is the best for you and your Kauai lifestyle. Feel free to call 808 652-6174 or email me kauaidreams97@gmail.com is you have any questions.

Aloha Julie Black RB-14203

Principal Broker/Realtor, CLHMS CRS, GRI,  4-1435 Kuhio Hwy, Kapaa, HI 96746

Building a Kauai home or Buying an Already Built Kauai House