Honolulu Real Estate Views » Negotiating Contracts

Buying REO’s & Bank Addenda

Keahi Pelayo — Wed, 30 Jun 2010 16:00:00 +0000

After a buyer makes an initial written offer on an REO much of the negotiation process is handled via email or verbally. Once a price is agreed upon then the REO Company will issue their particular form of many-paged addendum. If at all possible, try to get it in advance because they can hold surprises. Today’s video blog discusses how to plan for this process.

Click here to view the embedded video.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

The Details Matter!

Keahi Pelayo — Mon, 28 Jun 2010 16:00:23 +0000

When negotiating your purchase contract for a Honolulu home or condo make sure that your contract includes all of the important details. Once the contract is agreed to, it is difficult to amend it and you may not be able to get the concession at a later date.

Click here to view the embedded video.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

Are Realtors Paid Too Much?

What’s Negotiable In The Purchase Contract?

Keahi Pelayo — Fri, 25 Jun 2010 18:44:22 +0000

Most buyers, sellers and professionals use the Hawaii Association of Realtors Purchase Contract (PC) as the document to negotiate Honolulu home and condo sales. Since it is a pre-printed form how much of it can be negotiated? Today’s video blog clarifies this pondering.

Click here to view the embedded video.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

Buying more might make your retirement better

Sellers Beware Of Company Addenda

Are Realtors Paid Too Much?

When Does The Negotiation For The Price Of Your Home Begin?

Keahi Pelayo — Fri, 09 Apr 2010 19:24:36 +0000

In this video blog, I discuss when the negotiation for the price of your Honolulu home or condo really begins.

Click here to view the embedded video.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

Are Realtors Paid Too Much?

Does AS IS Exempt A Seller From Disclosure?

Keahi Pelayo — Sun, 04 Apr 2010 16:00:24 +0000

In today’s video blog, I discuss whether or not selling a property “AS IS” will exempt seller having to tell a buyer about known issues or problems with a property. Here’s the bottom line, no matter strong or tough a contract is on being sold “AS IS”, the seller still has to tell a buyer what they know.

Click here to view the embedded video.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

Are Realtors Paid Too Much?

Avoid Problems By Getting Surveyed In Advance

Keahi Pelayo — Tue, 16 Mar 2010 22:29:53 +0000

In today’s video blog, I discuss getting your Honolulu home surveyed before you put your home on the market for sale. This may help you to avoid a large number of potential problems that could cost you money or lose you a sale.

Click here to view the embedded video.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Honolulu Trump Tower-Maybe Not! Read The Contract!

Keahi Pelayo — Tue, 14 Jul 2009 19:01:48 +0000

A few years ago when the Trump Tower in Waikiki was being pre-sold, a client called me with an interest buying a unit. I told him I would read the forty-two-page contract and let him know what I thought about the purchase. Here is what I told him.

1. There is no guarantee that the project would be named a “Trump Tower”.
2. The size of the units could vary buy as much as ten percent. Given this clause, I felt he should expect the unit to be 10% smaller than advertised.
3. Due to number 1 and number 2 above and the outrageous per square foot cost of the project, I recommended against buying. Thankfully, he took my advice.

Flash forward to this morning! The Honolulu Star Bulletin has a headline that reads “Trump Tower Might Not Really Be A Trump” and the Honolulu Advertiser has a headline trumpeting “Buyers Sue Trump Waikiki”. In the Star Bulletin, attorney Warren Price is quoted as follows.

“Price says Irongate concealed the terms and conditions of the Trump license agreement, including whether it could be assigned to the buyers. These material facts should have been provided before buyers signed their sales contracts.”
READ THE HONOLULU STAR BULLETIN ARTICLE

The developer of the project is quoted through the Honolulu Advertiser as follows.

“”Furthermore, we intend to pursue all of our own claims against these individuals. The vast majority of buyers are moving towards closing and are looking forward to their first visit to Trump Tower Waikiki Beach Walk later this year.”
READ THE HONOLULU ADVERTISER ARTICLE

Here are the lessons.

1. Read the contract. It will tell you what rights the buyer and the seller have. In the case of Trump Waikiki, the buyer did not have many rights.
2. Words mean things. If the contract says they can change the name, then they can change the name.
3. Clauses are put in a contract for a reason. When I read the Trump contract, I did not think that the naming and square footage issues we inserted by accident. Who ever wrote the contract knew that they had to be in the document to protect their client.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

OTHER HONOLULU REAL ESTATE POSTS WORTH READING
Honolulu Real Estate Vs. Stock
A Good Lesson
Answers To Your Questions About Keahi Pelayo
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

Honolulu Condos With 70% Or More Owner Occupancy

Keahi Pelayo — Tue, 13 Jan 2009 20:25:25 +0000

Here is a BIG thank you to Tim O’Leary, of Bank of Hawaii, for directing me to Hicondos.com. In yesterday’s blog post, I informed you that lenders are now requiring a owner occupancy of 70% or more, if a buyer is using a down payment in a purchase of less that 20% of the price. As I feared, there are not many Honolulu condos that can meet this level of occupancy. Below are 10 that do meet the guideline.
1001 Wilder-87%
1010 Wilder-95%
1015 Wilder-83%
1133 Waimanu-75%
1350 Ala Moana-89%
Cantebury Place-80%
Courtyards at Punahou-94%
Hawaiki Tower-90%
Oceanside Manor-78%
Queen Victoria Residences-80%
Note that this is not a complete list, but I will post more as I find them. It is interesting that most of these condominiums are in the upper range of value for Honolulu. Call me at 808-737-2093 or toll free at 877-737-2093 to discuss your real estate plan.

Owner Occupancy Requirement UP For Honolulu Condos

Keahi Pelayo — Mon, 12 Jan 2009 19:29:05 +0000

In the good old days of the fast and easy availability of financing, a lender would make a loan on a condominium with an owner occupancy percentage above 50%. Some lenders had a stricter guideline of 55%. With all of the shifts in financing over the last half year, in cases where buyers are using a down payment of less than 20%, lenders are now requiring an owner occupancy percentage of 70%! To find a Honolulu condo with this high of an owner occupancy level is very rare. This new requirement may have the following implications.

1. Condominiums with owner occupancy levels lower than 70% should expect the following to occur.
a. Due to the lack of available financing for low down buyers, prices could go lower.
b. Owners may need to carry a second mortgage of 10% to 20% of the sales price to get the loan to value ratio for the bank to a level at which they will make a loan.
c. Owner occupancy levels could actually drop as more investors may buy in the building, thus exacerbating the problem.
2. Condominiums with owner occupancy levels above 70% could see the following.
a. Much higher buyer interest since they meet the new lending guidelines.
b. As a result of increased buyer interest, there will be pressure for values to go up. If this guideline remains in place over the long term, appreciation in these buildings may actually out perform the rest of the market.
c. Owner occupancy levels will increase.
d. Over the long haul you may see the buildings are better maintained. There seems to be a relationship between the number of owners living in a building and the quality of its maintenance.

If you are in investor or person looking to buy for your own account buildings with 70% or more owner occupancy may be great places to invest. Call me at 808-737-2093 or toll free at 877-737-2093, to discuss your unique real estate situation.

Lessons From A Honolulu Home Sale

Keahi Pelayo — Thu, 30 Oct 2008 22:43:50 +0000

This past September I was hired to sell a home located on Honolulu’s Waialae Nui Ridge (CLICK HERE FOR A CMA). It was a 3 bedroom 3 bathroom split level home that sat on 7,700 square feet of land and showed impeccably. The list price was $1,145,000 and it sold in 5 days for $1,200,000. Note that we had multiple offers and this was an important factor in getting the price to move above full list price. There are many questions that arise from this sale and here are a few of them.

1. September was one of the worst months in economic history, how were we able to sell so quickly and at a price that was higher than the original list price?
2. Isn’t the market “bad” and isn’t it a bad time to sell?
3. Aren’t all of the buyers waiting to see what happens with the economic bailout?

Awesome kitchen!

Here are 5 lessons from this sale.

Lesson 1. I expected the property would sell in the range of $1,100,000 to $1,200,000. I recommended a list price of $1,100,000 and the seller chose to list at $1,145,000. In this market a property has to be priced exactly (if not below) where it is expected to sell. If properly priced, Honolulu homes and condos will sell and they will sell fast.
Lesson 2. Proper pricing took away any buyer’s ability to sit and wait. This property was a good enough value that buyers had to fear losing it if they chose to wait to make an offer. In fact, one of the first buyers to see the property waited a few days and seemed very disappointed to have missed the opportunity.
Lesson 3. By receiving offers immediately, the days on market remained very short. If a property is on the market too long, it is very likely that a seller will receive less money. For some reason to many days on market, allows a buyer to believe that they can offer a lower price. In today’s world, with proper marketing, a seller should receive written offers within 2 to 3 weeks of coming on the market. If activity is low or if no offers are made, then the price is probably too high.
Lesson 4. This home showed very, very well! The owner took the time to organize, de-clutter and have the home cleaned before we began showing. Just like selling a detailed car, a clean and well showing home will garner more interest and money than one that shows up like a fixer upper.
Lesson 5. The six P’s can make you money (Prior-proper-planning-prevents-poor-performance)! By taking the time to prepare the home and properly price, we were able to get sold in a market that some believe to be difficult.

If you would like to discuss selling your Honolulu condo or home, call me at 808-737-2093, as I would love to talk with you.