Archive for September, 2008
Seven Sins Of Selling Yourself
September 30th, 2008 categories: Honolulu Real Estate 101
Okay they aren’t sins, but I got you to read the post! Forbes on-line has a very interesting article regarding 7 things to consider when you are thinking about selling your home yourself (without an agent or broker representing you). All seven issues should be weighed before you place an advertisement and put the sign in front of your home. I found the comment concerning negotiating to be powerful.
“Remember that you may be up against professionals who are keep (sic) negotiators and know the sale process very well. As such, they may suggest all sorts of terms and conditions that sound reasonable but really aren’t in your best interest. Even an unseasoned real estate agent is likely to be aware of the implications of various terms and conditions - will you?”
CLICK HERE TO READ THE ENTIRE FORBES ARTICLE.
An issue that is not covered (okay maybe obliquely) has to do with ongoing liability once the sale is closed. In Hawaii, sellers are obligated to disclose material knowledge concerning the property, neighbors and neighborhood. A buyer has two years from discovery of an undisclosed issue to come after the seller. A good broker can help by making sure all of the proper disclosures have been made. Furthermore, if after the fact there is an issue, most reputable firms maintain errors and omissions insurance. This insurance can be called on to help a seller. Seriously, if you are thinking about representing yourself in the sale of a Honolulu condo or house, then my recommendation is to bring in a professional. You have way more to lose by accepting the liability of the sale.
OTHER POSTS WORTH READING!
Honolulu Rental Rates
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
Pricing Your Home
Long Term Investment Makes Sense
Schools
| Discussion: No Comments »
Honolulu Condo Sweet Spot!
September 30th, 2008 categories: Honolulu Condominiums
Diamond Head vintage home.
As you know I am a bull on most of core Honolulu. As I see it long term, 2 bedrooms and bigger, with 2 baths or more and 2 parking, priced under $500,000 fee simple, is a sweet spot in the Honolulu condominium real estate market. When I searched by these parameters today, I found ten (10) available units in tax map areas 11-8 through 135 (note that I have not included Waikiki in the attached market analysis). Here is why it’s a sweet spot.
First, see my previous post on why core Honolulu is a great mid to long-term play. Second, the majority of condominiums in town have 1 parking stall. Our culture is one where people are going to have more and more automobiles, therefore 2 parking stalls will be more appealing to owner occupants and renters. Thirdly, the second bath is becoming a standard option for the most sought after units. A single bathroom will eventually be perceived as functionally obsolete. By buying under $500,000, you position yourself to be in a portion of the market that seems to hold a great deal of demand.
In summary, if you are thinking about buying in Honolulu, this may be a very sound section of the market to target.
OTHER POSTS WORTH READING!
Honolulu Rental Rates
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
Pricing Your Home
Long Term Investment Makes Sense
| Discussion: 2 Comments »
California Mortgage Brokers Dodge A Bullet
September 29th, 2008 categories: Rants & Riffs
California’s Governor, Arnold Schwarzenegger, just vetoed a bill that would have put a great deal of regulation on the State’s mortgage brokerage community. The fact that the CA legislature was trying to regulate the mortgage industry is a sign of the times. I am happy that the bill was killed, further regulation of an important source for financing could exacerbate an already dwindling supply of mortgage sources. Axing the bill has National relevance too, passage of a law in California could send a signal to other States (Hawaii) to pass similar laws.
“The governor said the proposal would put state-regulated mortgage brokers at a competitive disadvantage against other brokers handling federally regulated mortgages.”
CLICK HERE TO READ THE LA TIMES ARTICLE
I am not defending unscrupulous mortgage brokers (they should figuratively be strung up), but with all the regulation in the air, I think it is important to defend free markets.
OTHER POSTS WORTH READING!
Honolulu Rental Rates
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
California Improvements Could Help Honolulu
September 29th, 2008 categories: Honolulu Real Estate 101
Classic Coconut Ave. Kamaaina home
Hip, hip, hooray! California is generally considered a bell weather indicator for real estate and the economy. A recent article in Pacific Business News shows that California’s number of months of remaining inventory and the days on market have dropped significantly as compared with August 2007. This bodes well for Honolulu home and condo sales because as California improves, this improvement will translate to Hawaii.
“The unsold inventory index for existing, single-family homes in California during August dropped to 6.7 months from 10.6 months for the same period a year ago, according to a report Thursday by the California Association of Realtors.
The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
The Realtors’ organization said the median number of days it took to sell a single-family home was 47.3 days in August, compared with 54.7 days in August 2007.
The August report showed sales were up 56.7 percent statewide while the median home price fell 40.5 percent.”
CLICK HERE TO READ THE PBN ARTICLE
There are many moving parts in the current economic environment and this report could foretell a bottoming market. If I am right you heard it here first! If I am wrong (and I could be), then I am wrong.
Other Posts Worth Reading
Honolulu Rental Rates
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: 2 Comments »
Contemporary Honolulu Home
September 26th, 2008 categories: Views of Honolulu
Contemporary home found in Kaimuki
While driving through Honolulu’s neighborhood of Kaimuki, I came across this new home. By our standards, this is a very contemporary home.
| Discussion: No Comments »
Silver Lining To A Dark Cloud For Buyers
September 26th, 2008 categories: Buying Honolulu Real Estate, Honolulu Real Estate 101
Diamond Head Light House
An article posted at Bloomberg.com is divining that the Federal Reserve may be close to reducing interest rates. Rates are already very low and any additional reduction in interest rates should push buyers off of the waiting to buy fence.
“Federal Reserve Chairman Ben S. Bernanke moved closer to cutting interest rates, signaling that risks to U.S. growth are greater than policy makers saw them just last week.
The “intensification” of the financial crisis in recent weeks is curbing Americans’ access to borrowing, making the outlook for consumer spending “sluggish at best,” Bernanke told lawmakers in Washington yesterday. While he noted that risks to inflation remain, the Fed chief’s testimony focused on “grave threats” to the banking system.”
CLICK HERE TO READ THE ARTICLE
I find it interesting that a person who is now renting would not buy in this market. Values and interest rates are down, inventory is up and the negotiation process generally favors buyers. Yes, I acknowledge that all of the financial market upheaval can be seen as disconcerting, but a person has to live somewhere. Why not take control of your life and use the rent you are already paying to buy something that positions you for economic betterment?
On a final note, I have always been and always will be a “Bull” on core Honolulu homes and condos, so add the fact that a buyer can get into a great long-term market like Honolulu’s and hesitancy makes even less sense. Have courage. Become a contrarian and you might find that you will out perform the herd.
OTHER POSTS WORTH READING!
Honolulu Rental Rates
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
Rentals Can Take You Apart!
September 25th, 2008 categories: Honolulu Real Estate 101
Many people see buying foreclosures as a great vehicle to make their fortune. Flips have become very difficult to do, so this leaves turning houses and condos into rentals. The challenge with rentals is the ongoing maintenance and management. Experience tells me that the most successful landlords are very, very hands on. It is difficult to find a good and responsive manager, especially if your rental property is out of your local area.
Since 2003, Washington D.C. base Redbrick Partners, LLC, has raised approximately $50,000,000 to buy foreclosed houses. Redbrick is now shying away from individual homes in favor of properties that require less management. Again, even with significant buying power Redbrick couldn’t find the level of management they needed. A Wall Street Journal Article pointed out the following.
“In Baltimore and Trenton, Redbrick said in a recent letter to investors in one of its funds, “we have not been able to generate positive cash flow from these assets through our internal property management organization and have also been unable to identify satisfactory third-party property managers.”
CLICK HERE TO READ THE ENTIRE POST.
If you have a home or condo in Honolulu that needs management, call me at 808-737-4808 and I will do my best to help you find good management.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
Headway On Improving Waikiki
September 25th, 2008 categories: Reasons To Sell
Morning sunrise over Koko Head
The renaissance in Waikiki continues with Queen Emma Foundation’s plan to redevelop the famous or infamous (depending on how you look at it) International Market Place (IMP). IMP is dead center in the middle of Waikiki and, though it is charming, it has been ready for a new look for the last 20 years. This is great news for the area.
“You want to create a thriving center where future generations will be able to enjoy the rich heritage of these properties while maintaining a Hawaiian sense of place,” said Mark Yamakawa, president of Queen Emma Land Co., in a statement. “We recognize that we have a responsibility to do our part to help enhance Waikiki for both locals and visitors, not only for the obvious benefits to the community, but also to enhance Waikiki as a destination and strengthen Hawaii’s economy.”
CLICK HERE TO READ THE PBN ARTICLE
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
Hawaii’s Rental Rates Highest In The Nation!
September 24th, 2008 categories: Buying Honolulu Real Estate, Honolulu Real Estate 101
Here is another reason to buy a Honolulu rental house or condo. According to today’s Honolulu Advertiser…
“Median monthly rent was $1,194 in Hawai’i last year, meaning half of all renters paid more and half paid less, according to the census estimate.
Only three other states had four-figure median rental rates - California at $1,078, New Jersey at $1,026 and Maryland at $1,000. Nevada ranked fifth at $980.
Hawai’i’s median rent was up $78 from $1,116 a year earlier, and reflected higher home values passed on to renters as well as new housing inventory that included upscale condominium tower projects Moana Pacific and 909 Kapi’olani in Kaka’ako on O’ahu, the state’s largest housing market.
Dorothy Rapoza, a retired typographer on the Big Island planning a move to O’ahu for work, said she was surprised at how high rents are in Honolulu.”
CLICK HERE TO READ THE ENTIRE POST.
The lack of supply in core Honolulu, high values and low vacancy have driven rental rates. These same factors should drive long-term (5 to 10 years) real estate values up.
| Discussion: No Comments »
Politics and Real Estate
September 24th, 2008 categories: Rants & Riffs
Ewa city lights from my house.
In this election season it is appropriate to talk politics. Our nation was founded on the view that all men are created equal and should be free. It is incumbent on every citizen to be politically involved because, believe it or not, politics and politicians affect every part of our life. The water you drink, the car you drive, the air you breath, your right to speak and yes the value of your real estate can and are impacted by those rascalsat City Hall, the State and National Governments.
Given the oil prices, sub-prime mortgages, the FNMA and Freddie Mac bail out, and the current $700,000,000,000 (wow that was hard write) fix being negotiated and debated in Congress. It is very easy to now see that what an elected official writes can haunt you and me for a long time to come. I implore you to get educated, get involved and vote!
My bias is toward smaller government and lower taxes. There is not one thing that government can do better than the private sector. Certainly, I don’t believe the private sector should be in charge of wars, but I view government as a necessary evil. Let’s be skeptical when the government comes to help us and, outside of the fiscal emergency we now face, let’s try to keep them out of our life.
So why is a real estate blogger talking about the taboo subject of politics. Here’s why, we can’t afford not to be involved. Your Honolulu home is one of your most valuable assets. Stupid or ineffective politicians can literally cost you tens of thousands of dollars in lost equity. Think about it.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
