Archive for the 'Reasons To Sell' Category
Honolulu’s Building Code and Lanai Railings!
June 30th, 2008 categories: Reasons To Sell
I love what you could do before the tightening of the building codes. More than likely, the rail above would not be allowed under current building codes. The gaps between the leaves are too wide and a child could fall through. If this home were for sale and you purchased it, be ready for your professional inspector to note the irregularity.
If you have kids, a simple and safe solution, that could keep the view open, would be the installation of 1 inch by 1 inch wire mesh on the inward side of the railing. Another issue that cannot be determined from afar is the height of the rail. To me it looks too low. When buying an older Honolulu home, be sure to check the lanai rails.
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What Price Should You Offer On A Honolulu Home?
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Bad Traffic in Honolulu?
June 20th, 2008 categories: Reasons To Sell
It seems the further one gets outside of the core of Honolulu, the worst the traffic gets. A recent report on Honolulu’s traffic confirms that this is the case.
“Forty hours sounds like a typical workweek. But that’s how long motorists are stuck in traffic each week where Moanalua Freeway’s eastbound lanes meet the H-1 freeway from the airport.
That logjam contributes to Honolulu’s rating as the worst U.S. city for rush-hour slowdowns, according to a private survey released by a Seattle firm.”
CLICK HERE TO READ THE HONOLULU STAR BULLETIN ARTICLE.
As sad as I am to say, “I told you so”, this is more evidence that traffic will continue impact your quality of life. Given this confirmation, I believe you will see real estate values in core Honolulu do better than outlying areas. So if possible, buy between Nuuanu and Hawaii Kai.
Today’s picture was taken from the starting line of a canoe race and it is looking back at the beach in Nanakuli.
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Hawaii’s Purchase Contract Makes Honolulu Real Estate Easy!
June 4th, 2008 categories: Reasons To Sell
If you are planning on buying or selling real estate in Honolulu it is good idea to familiarize yourself with the Hawaii Association of Realtors Purchase Contract. Those of us who have been around for a long while, have had the term Deposit Receipt Offer and Acceptance (DROA) steeped into our memory, but the new contract is called the Purchase Contract (PC).
The PC is a binding contract and it contains all of the agreements made between buyer and seller. A copy is delivered to escrow and escrow follows the terms in the PC to make sure the terms and conditions agreed to the buy the buyer and seller are met. Get a copy by double clicking on the link below. Knowing the document will help your real estate transaction go much more smoothly (I have included copies of the AS IS Addendum and Counter Offer too).
CLICK HERE FOR A COPY OF THE PURCHASE CONTRACT, AS IS AND COUNTER OFFER.
Today’s picture was taken this past Sunday. I was holding canoes at the starting line at Keehi Lagoon. This is view looking straigt down the line.
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Inflation? Buy Honolulu Real Estate As A Hedge!
May 23rd, 2008 categories: Reasons To Sell
Wednesday’s news reports regarding the Federal Reserve’s concerns over possible increases in inflation may be another sign that it is a very good time to buy real estate in Honolulu. Vice-chairman of the Federal Reserve, Donald Kohn tries to articulate the Fed’s concern. Let me know if you can make sense of this quote.
“My expectations for moderating inflation and limited spillover effects from commodity price increases depend critically on the continued stability of inflation expectations,” Mr. Kohn said, in a speech to a pensions conference in New Orleans. “If longer-term inflation expectations were to become unmoored - whether because of a protracted period of elevated headline inflation or because the public misinterpreted the recent substantial policy easing as suggesting that monetary policy makers had a greater tolerance for inflation than previously thought - then I believe that we would be facing a more serious situation.”
To read the entire article click here.
In previous posts, I have discussed the reasons why I am bullish on mid to long term core Honolulu real estate values. Add inflation to this bullishness and you might want to get into Honolulu real estate and here is why.
I began my career in real estate in 1983. Our Nation was dealing with significant inflation that began in the late 1970’s and because the value of everything was shooting through the roof, real estate values were going up too. Because the bank will lend you most of the purchase price of a property, buyers were able to leverage their dollars against inflation through the purchase of real estate. If inflation does take off, today’s low interest rates allow you to lock in a very reasonable cost of money. In 1983, fixed rate loans were in the range of 18%. Imagine how happy you would have been if you had a 6% interest rate locked in before interest rates shot up.
Sincerely, for our Nation’s sake, I hope inflation is held at bay. If it does kick in, then having purchased now my make you look like a genius.
By the way, today’s picture is overlooking Lanikai from the middle part of the Lanikai Pillbox hiking trail. Double click on it to see a larger version.
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Honolulu’s Best Latte
May 16th, 2008 categories: Reasons To Sell
For me, I make the best latte in Honolulu. If you like your coffee extra hot and very strong, then you will like the way I make mine. Here’s the problem, I only make them for me or the guests in my home. If you’re forced to buy a latte in Honolulu, then the best around can be found in Kaimuki, at Coffee Talk. This great little meeting place is located at the corner of of 12th Avenue and Waialae Avenue. For clarity, if you like your latte on the “foofoo” side (ie. lots of foam, not much coffee flavor) you might find this too strong, but if you want a drink that will get your attention, it could be the perfect. While you’re there, be sure to have some of their home made baked goods (each day there is a different muffin). I like their blueberry muffins on Monday and Friday’s ginger muffin is terrific. This is another reason Kaimuki is a great place to live. Go, order, relax and enjoy.
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Honolulu Crash Pad Could Help With Mortgage Payments!
May 14th, 2008 categories: Reasons To Sell
Do you have an extra room in your home or apartment being used to store dust or junk? Given Honolulu’s International Airport, your room could be turned into a cash flow cow. A recent article in the LA Times talks about the need for “crash pads” for aircrew (pilots, flight attendants, etc.). Since Honolulu is a desirable location for senior flight crews, you may find that your renter would be in residence for a small portion of the month. In any case, if you are looking for a little additional income a “crash pad” might be just what the doctor ordered.
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“Despite a relatively low profile, crashpads are not a new idea and are nearly as old as the airlines themselves. Pilots, flight attendants and other airline employees may live in one city but fly out of another one, sometimes hundreds of miles away. Often this gap between home and base is the result of employees’ shifting schedules or changing to a different airline. Others find their base city to be too expensive to live in.”
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Click here to read the whole article.
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Using An In House Lender in Honolulu?
May 13th, 2008 categories: Reasons To Sell
Many local Honolulu real estate firms have their own “in house” lender, also known as an “affiliated” lender. When a buyer is making an offer through a firm that has one of these captive lenders there should be written disclosure of the relationship between the real estate company and lender. I have always been uncomfortable with “in house” lenders because of the less than arms length relationship between the two. I have never been able to clearly articulate my concern, but this past Saturday I came across a blog that has done a great job shedding light on the subject.
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“What do you think happens in the Toyota dealership when you are ushered over to the finance department and walk out with a Toyota Motor Credit loan or lease?”
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Read the entire post by clicking here.
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Honolulu Vintage Home Collage
May 7th, 2008 categories: Reasons To Sell, Views of Honolulu
Click here to see the youtube video. Here are a few more fine examples of homes that can be found in Honolulu. Enjoy the stream!
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Lessons in Pricing Honolulu Real Estate
May 5th, 2008 categories: Reasons To Sell
This Manoa cottage closed at $800,000 on April 30th. I represented the buyer and it was originally listed for sale at $799,000. There are many great lessons that can be drawn for from this sale, but the most important lesson for sellers of Honolulu real estate is that pricing is the key to creating activity and ultimately selling your property. First some back ground.
Given its location, condition and quality, many sellers and brokers would have been tempted to pick a list price of $850,000. This would have positioned the home as a moderate value. No one will ever no how how well $850,000 would have worked, but in my opinion it may have created a lower selling price. To begin with, the property would not have seemed like such a good value. Secondly, the home needed remodeling and at $850,000, once the work was completed, the prospective buyer would have been over paying. Thirdly, $850,000 would not have created the initial energy or momentum procured by $799,000 and would have extended the days on market for the home. Generally, as days on market extend, the sellers can expect more pressure to reduce the price, long market times lead buyers to believe that a property is overpriced. Again, nobody will ever know, but I estimate that a price of $850,000 and extended days on market would have led to a selling price in the range of $750,000 to $775,000.
Here is what the $799,000 list price did.
1. The property had an accepted offer 7 days after coming on the market.
2. There were 3 offers at the same time (though I don’t know for sure, I am told they were all at or over full list price).
3. The closing of the sale occurred within 39 days of the accepted offer.
4. The buyer put $300,000 down and the loan was very easy to get.
5. Due to the multiple offers, the buyer’s offer was very clean, which means there were few contingencies (ways for the buyer to get out of the contract) and all of the time frames were very short.
6. There was a tenant in the property and the buyer agreed to buy the home without having the seller make the tenant move. This would have meant closing at least a month later.
7. After having a professional inspection, the buyer was more willing to overlook defects.
In many markets, it is believed that sellers are at a disadvantage. This is an example where a seller seized the initiative from buyers by proper pricing. The price created immediate interest, multiple offers and put the seller in the transactional drivers seat! When you are a seller, be aware that a higher price could put you in a bad position and a lower price may lead to you getting a higher offer.
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Honolulu Foreclosures…Good News!
April 29th, 2008 categories: Buying Honolulu Real Estate, Reasons To Sell
Read this article which shows Honolulu having the second lowest foreclosure rate in the U.S.
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