Archive for the 'Honolulu Real Estate 101' Category
How Bad/Good Is It In Honolulu Real Estate?
September 18th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
View of water from Transpacific College on Kal Hwy
Depends on when you purchased. Let’s take a look at Honolulu real estate median prices for single-family homes over the last five (5) years (source: Honolulu Board of Realtors)
January 2004-$400,000
January 2005-$505,000
January 2006-$615,000
January 2007-$600,000
August 2008-$635,000
I am going to make a generality (I hate generalities); based on these numbers if you purchased your home prior to January 2005 you are probably in a very good shape (providing you didn’t refinance). Because the market is now favoring buyers and, therefore, buying power is up, owners of homes can bet that they don’t have as much equity as they used to have. But if you purchased in 2004, 1998 or even 1987 you are in great shape.
Here’s the point, the vast majority of Honolulu real estate owners purchased well before the peak in the market and they are still in a terrific financial position. If we accept this thesis, we are suffering from a crisis of confidence and this has infected the Honolulu real estate market. Funny how our attitude can affect our outward world! I wonder if we collectively decided that everything is going to be fine, we would turn the market positive. Think about it.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
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In Honolulu Real Estate Zoning Rules Matter!
September 17th, 2008 categories: Honolulu Real Estate 101
What is wrong with this picture?
Before you build a home in Honolulu be sure to have your architect check the zoning rules for the particular piece of land you are using. In Honolulu real estate these rules matter! They place limits on height, parking, set backs, amount of square feet you can build and much more. Believe it or not, people try to “stretch” these rules.
If you are beyond a particular required specification you may be able to apply to the City for a variance, but they cannot be compelled to give it to you. In the worst case scenario, and you have to plan on it becoming the likely scenario, they will have you bring your building into compliance with the rules. This means you will have to remove the offending issue.
Thus today’s picture. On a recent hike behind my home, I was able to look down on one of the more famous incidents of going beyond height limits. The temple in the picture was built with the customary spires and peaks that one would associate with religious buildings. However, these items were above the height limit and the neighbors complained and “voila”, after much battling, the temple was required to bring the building to a height level compliant with the zoning! Now they have a “lovely” flat portion at the top of a beautiful tile roof.
In conclusion, when developing real estate in Honolulu, be sure your architect and engineers factor in all of the pertinent zoning rules, or you may need to give your building a haircut.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: 5 Comments »
Multiple Offers on Honolulu Real Estate & Options For Handling Them
September 12th, 2008 categories: Honolulu Real Estate 101
I know you must find it shocking for me to discuss multiple offers on Honolulu real estate, as many people assume the market is slow. Believe it or not, I have been having multiple offers on a number of my listings.
So how can one handle more than one offer on a property? To make this simple, let’s first assume that each offer is substantially the same, because if one offer is significantly better the other offers, it may be best to work with the strongest offer. Here are your options.
1. Go back to all parties and tell them that you have multiple offers and that they have until a certain date and time to present their best offer. Once those offers are received, the seller can then pick the best one with which they would like to work.
2. Work with the offers in the order that they were received. Comment, if I represent a seller, I have observed that this is not the best way to get to the best buyer, as you are letting the clock decide who is best to work with. Just because a buyer delivered their offer first, does not mean that they are the best buyer.
3. Issue multiple counter offers. With the proper contractual language, a seller may issue simultaneous counter offers to multiple parties. In the event that more than one counter offer is accepted, then the language should allow the seller to choose the contract they want to work with and cancel the rest.
There are variations of these methodologies, but in general these are your options. When I represent a seller, I find the third option to work the best. It positions a seller to be able to have more than one qualified buyer from which to choose and it enables the seller to create terms and conditions that best meet the seller’s needs.
Today’s picture was taken from the hiking trail behind my house. It is looking over the upper end of Kilauea Avenue, Kahala, the Waialae Golf Course and you can see Blackpoint on the right.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: 2 Comments »
Turning Your Honolulu Rental Into Your Primary Residence
September 4th, 2008 categories: Honolulu Real Estate 101, Reasons To Sell
Margaret Woda, of RE/MAX Vision in Crofton Maryland, has an excellent post explaining recent changes to rules regarding the sale of a primary residence, which was formerly used by the owner as an investment property. Rather than try to explain this complex change be sure to go to the post and read it very carefully. Also, do not rely on the post for tax advice! You should always see your own tax professional regarding the specifics of your situation.
“The new law closes that “loophole” by requiring homeowners to pay taxes on gains made from the sale of a second home to reflect the portion of time the home was not used as a principal residence (e. g. vacation or rental property). The amount taxed will be based on the portion of time that the house was used as a vacation (second) home or rented out. The rest of the gain remains eligible for the exclusion, as long as the two-out-of-five year usage and ownership tests are met.
For example, if married taxpayers owned a vacation home for 10 years but lived in it as a principal residence only for the final two years prior to the sale, the maximum allowable exclusion ($500,000 for a married taxpayers) would be reduced by four-fifths (80%). Accordingly, a $400,000 gain on the sale that would be eligible for the full exclusion under the pre-Act law would be reduced by 80% to $80,000, rendering $320,000 of the gain subject to taxation.”
CLICK HERE TO READ THE ENTIRE POST.
Today’s picture was taken on the trail behind my home. I don’t know what it is, but it sure was pretty!
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: 1 Comment »
Growth In Honolulu’s Second City
September 3rd, 2008 categories: Honolulu Real Estate 101
Here is a great article on development in Kapolei.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
The Demise of a Giant!
August 28th, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
I was surprised to read that the LA Times has done away with its Sunday Real Estate Section! I have heard that the Times has been bleeding red ink, but this was shocking. A recent Blog post by LA Realtors, Merrie Kung & Noelle Hettlinger, summarizes the shift away from newspapers in the marketing of real estate.
“I’d guess that the paper had the ad money for the length of time it did because when the market was booming, brokers had the cash to put into advertising that they knew wasn’t very effective just because they could. It was easier to appease sellers and continue the same old thing because it was less work that educating people about how the marketing paradigm had shifted away from print media. Now that everyone is watching their wallets much more closely, better advertising dollars are spent on being where the customers are.”
CLICK HERE TO READ THE ENTIRE POST.
In Honolulu, I have found that an advertisement placed in the local newspapers leads to almost no calls. In years past, there would be many responses. Marketing on the web has become the key to getting a home sold.
Today’s picture was taken outside San Francisco. Don’t know what it is, but I thought it was beautiful.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: 5 Comments »
Prepare Your Honolulu Home Before You Go To The Market!
August 27th, 2008 categories: Honolulu Real Estate 101
North Carolina Realtor, Sandy Sibley, has 8 great suggestions for increasing the value of your home. She says the following.
“Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.”
CLICK HERE TO READ THE ENTIRE POST.
A little preparation ahead of time can lead to a quicker sale and more money in your pocket. Call me at 808-737-2093 if you would like me to take a look at your property.
Today’s picture of a dragon fly on my sleeve was taken on my recent trip to northern California. He (the dragon fly) hung out there for at least 10 minutes.
OTHER POSTS WORTH READING!
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
| Discussion: No Comments »
Sell Your Honolulu Home Before Buying Another!
August 25th, 2008 categories: Honolulu Real Estate 101, Negotiating
Sara MacLennan and Sheldon Johnston, real estate agents in Edmonton, recently wrote a great article regarding the problems created by Buyers making offers on their new home before their old home is sold. They say the following.
“In order to get this condition accepted, every other part of your offer needs to be very strong. When we’re representing a seller and we receive a subject to sale offer, we will generally advise our clients to counter strong. The sellers really have nothing to lose, since the likelihood of the deal actually going together is slim to none. So as a buyer, you end up in a weak negotiating position, and will likely have to pay top dollar, with a large deposit and tight time frames on your other conditions - in fact, you could very easily end up paying for an inspection, only to lose the home to another party.”
CLICK HERE TO READ THE ENTIRE POST
I concur with their findings and highly recommend that you get your home sold before you try to buy another.
Today’s picture is another fish that I had a chance to meet on my recent vacation.
| Discussion: No Comments »
Now May Be The Time In Honolulu
August 21st, 2008 categories: Honolulu Real Estate 101, Rants & Riffs
Find your courage. If you are a long-term investor, now may be one of the best times to buy real estate. A recent Wall Street Journal article talked about an investment bank in San Diego that sees opportunity amidst the town’s slow real estate market.
“Mr. East, a managing principal of Silver Portal Capital LLC, a small real-estate investment bank, is raising $150 million to purchase foreclosed houses in and around the firm’s hometown of San Diego. He is scouring lender portfolios and real-estate listing services — as well as spots to get a cup of coffee — for houses that he can rent out and then resell in five years. That is when he bets that the local housing market will have recovered.”
Translate this to Honolulu. Our market is stronger, it has much less of an ability to add new homes and the still relatively low interest rates, and I believe a purchase now will be looked upon as a terrific move 10 years from now.
Today’s picture was taken on my recent trip to Antelope Creek Ranch in the Mount Shasta area of Northern California. As always, no fish was harmed in the taking of the photo.
| Discussion: No Comments »
Honolulu Board of Realtors Enter The Technological Age!
August 20th, 2008 categories: Honolulu Real Estate 101
Hip-hip-hooray! The Honolulu Board of Realtors has finally adopted a lockbox system that is consistent with the technological age in which we find ourselves. The new lockbox allows me to maintain detailed information concerning who and when your home is shown. It also gives me a much stronger ability to control overall access to a listing. All in all, it is a great system that will lead to more showings, which means a broader market for you property and the highest selling price. To learn much more about this system go to SentriLock.com.
When interviewing a Realtor to sell your property, be sure to ask if they will use the lockbox? Believe me it brings a great deal to the game.
| Discussion: No Comments »
