Feeling landlocked? Try taking a dive and exploring Hawaii's world under the sea.
I'm relatively new to Scuba Diving. Drew Wheeler, who has been gracious enough to include me in his diving expeditions, is an accomplished underwater videographer, conservationist, and scuba dive instructor. He certified me, and has opened my eyes to the wonderful world under Hawaii's blue.
Recently I went diving at Shark's Cove with Drew before preparing for my Sunday Open House. The Cove always proves itself to be a worthy dive spot: we saw a sea turtle and a huge Moray eel (this thing had to be 4 feet long), among other creatures.
It was a bit of a squeeze to get to my Sunday Open House at Cathedral Point-Melemanu on time, but I managed it! The time crunch was well worth the excursion to Hawaii's deep.
Check out Scuba Drew's website, where he showcases hundreds of underwater photos and videos: http://www.scubadrewvideoworks.com/
Single Family Home sales are way up in Mililani Mauka, recovering from a lull in sales volume and a drop in price earlier this year. The table below shows 14 homes sold in Mauka with an average sales price of $679,350. These numbers, when compared to January and February, represent unprecedented growth. So some extent, warmer weather and lower interest rates may be driving buyers, but if this were true, we'd be seeing changes throughout Mililani's condos and single family homes. Instead, Mililani single family homes show an unprecedented growth. You can thank the Economic Stimulus Package for that.
Recently, Fannie Mae increased its conforming loan limits by for home loans throughout the nation. Loan limits have increased considerably across the US. The actual limit varies from state to state, being the lesser of either $729,750 or 125% of the local median price. In Hawaii, the conforming loan limit went up from about $625,000 to $729,750.
Initially, there was some speculation as to whether this change would give Hawaii a boost. Hawaii's conforming loan limit was already considerably higher than in other states, and in places where the change was more pronounced, some commentators saw a greater economic stimulus for those states, but a diminutive change in the Islands.
Now, just a few weeks after the change, we finally get to see how higher conforming loan rates have affected the real estate market in Hawaii.
The increased loan limit has made it possible for lenders to offer higher loans at conforming interest rates, keeping the Buyer from paying higher interest on "Jumbo Loans." Fannie Mae buys these higher-dollar loans back from the bank, giving security to the lender, and allowing the lender to sell another loan to another customer.
The impact of the conforming loan increase has been on a very specific bracket of the economy. Homes valued between $625,000 and $1 Million were very difficult to sell prior to the conforming loan increase because buyers could not get affordable financing. Since the conforming loan increase, the rate of home sales in this price range has increased. Mauka's unprecedented jump is one example of how good the Economic Stimulus Package is for Hawaii.
What qualities should you be consider when choosing a good Realtor?
There are over 10,000 licensed real estate agents on Oahu. The sheer number of card-carrying "professionals" on the island is staggering. Everyone has their own strengths and weaknesses, and varying levels of skill and experience. How does the average citizen sort through the droves of choices and pick the right agent to work for them?
To start, understand that the basic service a Realtor provides is essentially the same no matter who you work with. We are all working with the same, finite inventory, showing homes on the same tiny rock in the middle of the Pacific, and we are all subject to the same laws.
Agents can, however, distinguish themselves from the hoard. Of the greatest importance is the professional standard to which the agent submits voluntarily. When you meet a Real Estate Agent, ask them if they are a member of the National Association of Realtors (NAR). If they say "yes" then you are talking to a realtor who submits to the Code of Ethics, a standard for professional behavior that goes beyond the minimum requirement of the law. While submission to the Code of Ethics is not compulsory for all Hawaii agents, NAR members (Realtors) do place their license on the line in the event that they break the Code. Being a member of the NAR, and subject to its Code of Ethics, is a serious commitment.
Beyond finding an agent with a higher standard, you have to consider your own needs and special style. Every agent is a different person with different strengths, weaknesses, and elements of style. Chances are, you won't work well with most Agents due to personality differences. When choosing an agent, look for someone you feel you can trust. Is your agent reliable, attentive and available when you need him or her? Do you get along with and understand your agent? Does your agent understand you and respond appropriately to your needs?
These are questions you need to answer for yourself. It might take some soul searching, but when you conclude that you feel comfortable with your agent, you are ready to establish a lasting professional relationship that will benefit you mutually for years to come.
If you are watching the news, then you have probably heard that this is a "Buyers Market." So, what does that mean for Sellers?
2008 is shaping up to be an excellent year for Hawaii Real Estate-against all odds! The drops in the federal lending rate have made it possible for Hawaii's prime lenders to offer excellent loan packages to buyers. The opportunity to refinance your home at an excellent fixed interest rate makes it possible for homeowners with assets to begin prospecting for investments. Rates are low, but rumor has it, they may get even lower.
The volume on Oahu's market is high, meaning Buyers have a lot of inventory to choose from. Over 1000 houses and condos were sold in February 2008, compared to 4400 listings on the market that month. The translation for you, Seller, is that in general, in February you had a 1 in 4 chance of selling your Oahu home.
I know what you're thinking:
ONE IN FOUR!!!! THAT'S TERRIBLE ODDS!
The thing to bear in mind is that prior to our 2002-2005 real estate bubble, it was not unusual to take 90 days or more to sell a home. So, calculating that out, our "buyer's market" is going to make homes take 120 days to sell on average (real data varies by region). Considering the usual length of a Listing Contract (one year), these odds aren't so bad.
Now consider that Buyers are starting to gain confidence. More and more shoppers are taking advantage of the low mortgage rates, and an increased availability of buyers will translate into faster sales for you.
In other words: Get Ready, the Buyers are Coming!
In an earlier article, I emphasized the importance of preparing your home for sale. If you want your house to be the one to sell this month, you've got to make it the most desirable.
The keys to having a desirable home are:
•1) PRICE IT RIGHT-if you want a fast sale, the price has got to be attractive.
•2) GET IT LOOKING GOOD-work with your realtor on fixing the nitty-gritty stuff and adding some attractive trimmings such as yard work, paint, flooring, etc. The amount of work required to beautify a home varies from house to house.
•3) GET IT WORKING RIGHT-make sure the faucets, appliances, windows, screens, electrical outlets, fire alarms-all the bells and whistles-are in proper working order.
•4) STAGING-your realtor can help you set up your house to emphasize its strengths by positioning nice looking (and not too extravagant) furniture and accents to give the house a ‘homey' touch.
When your home is the best house with the best price, you will have loads of people expressing interest in your house!
Listing your home today will mean that you are poised to take advantage of the excellent market conditions we have today. Buyers are starting to shop. Don't you want to be there when they buy?
Give me a call and we can talk about the market conditions in YOUR NEIGHBORHOOD. Things are getting sunny here in Hawaii again!
MORTGAGE RATES ARE LOW: Get While the Getting's Good
Ever since the new year, people have been seeing and hearing the major news media speak Doom and Destruction about our nation's economy. "Recession" was the word of the month in January, "Inflation" was the word of the month in February. But mortgage loan rates have not begun to reflect these ill omens. In an article by Lisa Scontras (Honolulu Advertiser March 2, 2008), a table of the national averages of historic rates for 30-year fixed-rate mortgages outlined rate changes in the past five years. An adaptation of this table is presented below.
Historic National Average 30-Year Fixed-Rates*
Month
2000
2001
2002
2003
2004
2005
2006
2007
2008
Jan
8.21**
7.03
7
5.92
5.71
5.71
6.15
6.22
5.76
Feb
8.33
7.05
6.89
5.84
5.64
5.63
6.25
6.29
Mar
8.24
6.95
7.01
5.75
5.45
5.93
6.32
6.16
Apr
8.15
7.08
6.99
5.81
5.83
5.86
6.51
6.18
May
8.52
7.15
6.81
5.48
6.27
5.72
6.6
6.26
Jun
8.29
7.16
6.65
5.23
6.29
5.58
6.68
6.66
Jul
8.15
7.13
6.49
5.63
6.06
5.7
6.76
6.7
Aug
8.03
6.95
6.29
6.26
5.87
5.82
6.52
6.57
Sep
7.91
6.82
6.09
6.15
5.75
5.77
6.4
6.38
Oct
7.8
6.62
6.11
5.95
5.72
6.07
6.36
6.38
Nov
7.75
6.66
6.07
5.93
5.73
6.33
6.24
6.21
Dec
7.38
7.07
6.05
5.88
5.75
6.27
6.14
6.1
Annual Avg:
8.05
6.97
6.54
5.83
5.84
5.87
6.41
6.34
*Adapted from table presented in an article by Lisa Scontras (Honolulu Advertiser March 2, 2008)
**Table does not reflect mortgage points, which fluctuated between 0.4 and 1.0 in original table.
The record low for the past five years was reached in March 2004, bottoming out at 5.45% . The national average for January 2008 was 5.76. The difference: 0.31 percent. That's just over 1/3 of one percentage point change from the national average low.
So where's the recession? Where's the inflation? Now is a great time to buy! Fixed rate mortgages with low interest rates mean you accumulate equity faster, and your payment is affordable.
I am concerned about the general public opinion of Hawaii's Real Estate Market. These days it seems like everyone I talk to has a terrible outlook on our state's realty market. I would call the general attitude Apocalyptic. But the facts about the market are anything but apocalyptic. In fact, Hawaii's market is generally strong.
The most current local rates are still hovering around 6% APR.
Hawaii Current Mortgage Rates*
Select Institutions
Points
15-yr Fix
30-yr Fix
Bank of Hawaii
~2
5.125
5.875
Central Pacific HomeLoans
2
5.25
5.875
First Hawaiian Bank
~2
5.25
6
Territorial Savings
-
5.375
5.875
Average
5.25
5.9
The one thing most lenders are saying these days is that today's rates may not stay low forever. So, when it comes to buying a home in Hawaii, you better Get While the Getting's Good!
You can contact a loan officer and find out if you qualify to own a home today. Here are some links:
Preparing your home for sale in a changing market.
Two houses are for sale on the same block. Both have the same floor plan, the same lot size and were built in the same year. They are listed for the same price, and they are attracting the same buyers. How does a seller compete with a neighbor without sacrificing on price? Preparation! Here are some simple and inexpensive things you can do to prepare your home for sale:
De-clutter. Determine what you need and use on a daily/weekly basis, then remove all other personal items from the home. This may include removing some furniture. The idea is to create open, neutral spaces so that potential buyers can envision their own stuff in your house. You can store these things in a storage unit.
Remove Personal Fixtures. Your mother made those lace curtains in the living room, and the wrought iron chandelier in the dinette is an antique you picked up on one of your trips to the Mainland. If you want to keep these things, remove them and replace them with something else. Homes come with all the attached light fixtures and window coverings. Even if your realtor states in the listing, "dinette chandelier not included" you will still have to replace the lamp when you move out. This may be a deal breaker for a potential buyer who became attached to the chandelier on first sight. Better to remove the fixtures you wish to keep and replace them, rather than have to explain it away every time someone asks about it.
Organize. Potential buyers are going to open drawers, cabinets, closets and doors to get an idea of the storage capacity your home provides. Closets and cabinets should be neat and organized, items stacked neatly inside of plastic containers and linens folded and stacked neatly. Try not to stuff your cabinets and closets to the max. Let buyers see to the back so they know how their own belongings would fit the closets.
Clean. I heard a story once of a realtor who listed a home with a tenant occupant. This person never cleaned the toilet or shower. EVER. The black mildew in the bathrooms was so bad, she had to hire a professional to re-caulk the entire shower! Presenting this condo to potential buyers was a nightmare for her because the bathrooms scared everyone away. After the tenant vacated, the place sold in just a few weeks-all because the owner was able to clean this otherwise beautiful condo!! The moral of the story: your house should be clean and presentable when buyers come to see it. Check for mildew in the bathroom around the base of the toilet, shower, and sinks. Find a product that will remove the ring around the toilet. Dust the interiors of your cabinets and vacuum the dustbunnies that accumulate around electrical cords at the computer and entertainment centers. Buyers really do check all the nooks and crannies. Also, clean your fan blades. It's a detail no one notices...unless they are shopping for a house!
Landscape. First impressions are the most important. Make sure your exterior is presentable and attractive to potentials on the drive-by. Don't spend a fortune: work with what you already have. If you have grass, give it a dose or two of Miracle Grow, and water it enough to get it healthy and lush. Plant flowers along borders, or put decorative gravel in instead. Make sure the grass is mowed regularly and weeds are kept to a minimum.
Depersonalize and Neutralize. Displayed collections, family photos, ornate furniture and accessory items, decorative fixtures, etc. should be removed. You don't want a potential buyer to walk in and immediately get distracted by your 200 piece Hummel collection, or your Mikasa crystal vase set. You want them to see the house.
Reassess your Paint Colors. Beyond the personal items, you should assess the color scheme of your house. Many homeowners have their own style when it comes to wall coverings. However, when you market your home, you should neutralize! Allow potential buyers to decide if they want to change the paint color. Neutral schemes will give the buyer the opportunity to envision another color, while allowing conservative paint-types to relish in the house's neutrality.
Home Warranty/Protection Plan. At relatively little cost to you, you can provide yourself and your potential buyers peace of mind and protection against unforeseen appliance malfunctions and basic utility repairs. This program, provided through the Liberty Homes office, adds value to your home by protecting your buyers from unforeseen household malfuntions. This alone can be the icing on the cake, especially when you are competing with a neighbor for the same buyer!
Prepare your Pre-Existing Warranties. You probably have warranties that are still good on various fixtures around your house. Perhaps you replaced the roof two years ago. How much of that warranty is left? Your new appliances should come with a warranty of some kind, too. Flooring materials sometimes get guaranteed, as well as certain types of paint and trim. Inform your Realtor® of these warranties and keep them all in an envelope so you are prepared to hand them over to the buyer when the time comes.
Fix your Fixtures. Isyour faucets leaking? Smoke detectors functional? How about the electrical outlets-do they have covers? Check your fuses, too. Are there holes in the screens? Buyers should see a home that has been maintained and is in proper working order. A small investment upfront on the tiny details can make your house the best one on the block-and prevent problems with the home inspection later on.
Realtor Magazine Online is a good source of Real Estate quizzes that will exercise your brain muscle. Try this quiz on Buyers Favorite Features, and test your knowledge of today's home buyer!
When I took this quiz, I found it both informative and thought-provoking. Here is one of comments I received with my correct answer to question number 9:
"Overall, 47 percent of buyers purchased a single-level home, while 44 percent of buyers purchased a two-level home. Nine percent of buyers bought a home with three or more levels. In general, the older the home buyers, the more likely they are to buy a one-level home."
Consider this: we all know that the baby-boomers are retiring. There is already a premium on single-level homes and first-floor condo units. As the American population ages, will we see an increase in this premium? Do you think it is advisable to invest in single-level or first-floor units based on the potential value of these units in the future? Also, would it consititute and ethics violation to advise a client of such a circumstance? Perhaps a violation of the Fair Housing Act????
With Halloween around the bend, the Holiday Season is upon us. Next Wednesday we will hand out treats, or risk getting tricked by the ghouls and gobblins that appear on our doorsteps.
Halloween marks the beginning of the Season of Giving and in a few short weeks we will embark on America's greatest shopping season. While you are out doing your Christmas Shopping, please don't forget about Toys for Tots.
Hawaii is full of needy keiki. These kids need BOOKS, TOYS and GAMES to help them grow and learn, ultimately becoming the nurses, civil servants, voters and tax payers that will support all of us in our geriatric future!!!!
So while you are out and about this Holiday Season, remember to deliver a new gift to any STARBUCKS or USPS location, where donations will be taken until Santa Clause comes to town.
As an introduction, this is my first (ever) blog entry. I know...so young, but so singularly old-fashioned! I am ashamed to admit that at a mere 24 years of age, I have no inclination toward technology, nor do I regularly pursue self-improvement in this area. Although there has been a computer in my home every day of my life (the first one I can remember had a black screen with green letters) I am hopelessly dysfunctional when it comes to technology. I remember my first computer class in elementary school. This was actually in Kindergarten, at a school where none of the teachers were tech-savvy either. There was a remarkable amount of stress, tears and disappointment when none of us 5 year olds could grasp the geometric program "Turtle." In adulthood I have discovered that in order to draw lines and designs within the "Turtle" program, one would have had to understand trigonometry and be able to quickly come up with the mathematical equations that correspond with whichever crazy pattern or design you wanted to draw. I don't know how the teachers at my school missed this fact. But it may be the source of my perpetual incompetence when it comes to computers.
That said, I am attempting to embark on a rather frightening endeavor: Real Estate in the Modern Era. In my imagination, this phrase corresponds with a Kubric-like crescendo of classical horn-blasting and the image of a giant man-killing space computer (think 2001: A Space Odyssey). In other words, the mission, as I have already accepted it, is to successfully market real estate in a world where the computer is the principal marketing tool-period. Thus, I am faced with the beast, which I will have to tame, or die. Perhaps my discovery of Web Marketing can be likened to Kubric's "Dawn of Man" scene, in which intelligent life started when an ape in a pod of peaceful gorillas discovered a tool with which he senselessly bludgeoned his fellow to death. Well, I'm not in this to kill anyone, though I sometimes harbor secret fantasies about throwing my monitor off a 20-story building. Our use of specialized tools distinguishes mankind from other apes, defining our separateness from the animal kingdom. Today is the day I take a bold step into human-hood, grasping the tool of technology and taking a ferocious swing at success.
Since the dawn of the World Wide Web, Americans have increasingly looked to the internet for their shopping and information needs. There are so many websites today that pertain to the RE market, it makes my head spin. Sifting through the plethora of "informational" sites is tricky, and determining which sites are legitimate can be disheartening.
As such, it is critical that agents of the Modern Era develop a strong web presence. Hence, my very first blog. I think it is also important that we share our knowledge of excellent sites with our clients, leads and each other. Shortly, I plan to add a "Helpful Links" section to my website, to direct web-researchers to the best possible online information. I invite you to please visit my website: DonnaOpensDoors.com. For the record, this site was designed by Randy Prothero, who has graciously supported my effort to develop my skills in Real Estate.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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