Is it just me who noticed that some of this season's new shows feature REALTORS?
The main character is ABC's show called Cougar Town is a REALTOR and even if there is not enough time for the show to present details on her work, she was still portrayed as follows:
1) she is showing a house and falls asleep on the couch, because she partied too much the night before;
2) her assistant ordered her new open house signs with a very revealing picture. As a result, teenagers in town are now steeling her signs....
The other show, "Modern Family", also features a REALTOR. He somehow notices that his son may help him make the sale and bring the son along...it all goes south, but again, we are all portrayed as not doing much to earn our money.
I wonder if that show on BRAVO with the three 20 year old guys selling $5mil+ properties in Hollywood is still on. That was another "amazing" portrayal of our profession and I wonder why it is not every teenager's dream to become a realtor...
There is only one positive spin that I can put to all this. When I was taking classes in publishing, the teacher said that a title like: "Man Was Bit by Dog" would attract zero interest compared to a title like " Dog Was Bit by a Man". Thus, only uncommon issues make the news and I conclude that hard working realtors do not make the headlines nor will they ever be featured in (reality) shows.
Although inventory is at a all time high, the number of escrows currently opened on Maui is slowly but surely going up. There are 406 escrows opened as of today, Sat 10/10/09. Given the fact that 16 sales took place in the past few days, it means that 21 escrows alone were opened in the last two days! Just for reference, July to December 2008, on average only two escrows were opened daily, while the total number of escrows opened at all times ranged in the mid 200's. A lot of those escrows were actually developer units that were still under construction, like Honua Kai, Opukea or West Maui Brakers.
86 escrows , that is 21.1% of the total number of escrows currently opened are short sales. 59 escrows (14.1%) are bank owned properties. This means that the remaing 64.8% of escrows are very motivated sellers, that recognized the new market conditions.
Almost half of the number of escrows are RESIDENTIAL, while 37% are condos. Less than 10% of the current escrows are for LAND and a lot of them are parcels that await final subdivision approval.
Only a handful of people seem to be buying timeshares. They are all resales, since the developer timeshares are not included in the Multiple Listing Services.
We surely hope this trend continues and that the short sale and foreclosures share of the market stays low!
Disclaimer:All raw data was obtained from Maui Multiple Listing Service.
On May 1st 2009, the new Home Valuation Code of Conduct came into force, with major consequences on your real estate transaction.
Here are the main issues:
- appraisals are not ordered directly by the bank or the realtor, but rather through a "clearing house" that uses a roster and a rotation system to decide which appraiser will be completing the appraisal. Even if appraisers have their area of expertise, that expertise wont come into play.
- realtors can not communicate with the appraisers. Realtors can not offer information about the property,suggest comparable properties or dispute/question the result of the appraisal. Since sometimes it is hard to find recent sales in a neighborhood, realtors could help by suggesting comps in areas that may be overlooked otherwise. In the past three months, I have received many calls from appraisers that simply needed to " pick on my brain" in an effort to find comps for a subject property or to learn why a certain unit in the complex would be worth $50,000 more than another one with the same square footage, for instance. Or whether a credit was given to the buyer at the time of purchase and the information is not public.
In a nutshell, if you are a buyer or a seller, here is what you can expect, as a result of the implementation of this new code:
- longer turn around time for appraisals. Estimated time now is 2-3 weeks, compared to 2 to 3 days, previously;
- longer time for a loan to be put together. Typical financing process will require 45 to 60 days;
- longer escrow times, that is 45 to 60 days;
- direct communication with the appraiser, in an effort to make sure that the property is appraised justly. This may be challenging when you are an out of state owner and you may need to do your own research in regards to market values.
- higher appraisal fees, since someone will have to be paid to do the job of maintaing the list of appraisers and ordering the appraisals according to the rotation system.
While I see the need to prevent further abuse and misuse of appraisals in the real estate business, I also think that the code is an exaggerated reaction to what happened in the past. I surely hope that a balance between preventing fraud on one hand and doing business in an efficient way on the othe hand, can be attained.
Who would have though that Safeway approach to sell will apply to real estate as well?
The developer for a new subdivision in Kihei, called Kilohana Waena, is offering 50% discount on the list price of one garden view lot, with the simultaneuos purchase of one ocean view lot, at the listed price. Different buyers can coordinate to get the discounted lot, also. The deadline to take advantage of this offer is May 12th 2009.
There are currently 17 lots for sale, out of which 8 of them have ocean views. Lots very in size between 7,511 sf to 11,698 sf and they vary in price between $499,900 to $729,900.
For more information on some of these lots, please click here.
Given the new guidelines for appraisals, as of May 1st 2009 , I can not stop thinking that there may be some appraisal issues for these lots, down the line, if a garden view lot sells for half the price. After all, the difference in full listing prices between an ocean view lot and and a garden view lot varies between $70,000 to $100,000, depending on the size of the lot, while the " discount " offered would be in the neighborhood of $250,000.
Pineapple Hill is one of the high end subdivisions in Kapalua, where homes have consistently sold for somewhere around $1,000/sf.
406 Monarch Pl was foreclosed on and listed by the bank at $1,700,000. And of course, it sold right away, since the actual market value is somewhere around $2.3mil.
Please click here to see all details on this beautiful home.
Well, sure enough the new owner turned around and relisted the property for sale, for $2.3mil the day after closing. Who would have thought that flipping properties is still possible. of course, we will wait and see what this home will sell for first.
The good news is that investors and specualtors are back in the market. They see the opportunities and they dont miss them. After all, nobody will appear on the evening news to say: buy now, this is the bottom, tomorrow prices will be higher. The news about hitting the bottom will always be in hindsight:-)))
One of my fellow colleagues pointed out the following article that appeared in US Today, on Monday, April 27th, entitled "Maui, Hawaii, home prices still high but falling". Please read the whole article here.
Two different experts are quoted in the article, Terry Tolman, the REALTORS Association of Maui chief executive and Byron Gangnes, University of Hawaii economist. While using different words, they both seem to agree that real estate prices are falling. Which means that prices are going down this very second.
During a private coversation with Terry Tolman, he actually said that the article does not reveal the whole story. It makes a headline saying that prices are going down, but failed to also express his opinion that this is a perfect time to buy. Large inventory, sellers with various motivations that are aware of market conditions, low interest rates: all these factors may not flash a red big light saying: THIS IS THE BOTTOM, JUMP ON THE BAND WAGON! But they are pointing to you that this is the perfect time to negotiate. We only see the bottom of the market in hindsight, there will be no news on it, that is for sure!
And while I dont claim to be a clairvoyant or have the ability to say where is this market going, I do know that the number of opened escrow are on the rise, even with all the challenges on the mortgage market. The number of pending contracts on Maui increased 25%, compared to the end of last year. I also notice a significant increase in the number of showings and inquiries that I get for my listings.
There are many opportunities out there, which inspired me to start a new series of blogs, called "What I Would Buy Today". So watch for those posts :-)))
As of yesterday, Thursday, there is no more Superferry to connect the islands of Oahu, Maui and Kauai. This is not about the economy or the cost of gas, but rather a legal issue. Apparently, the Environmental Impact Studies that need to be done for any similar project, were not completed for the Superferry.
There have been avid supporters of the Superferry, as there have been avid fighters against the Superferry.
On the "pro" side, the arguments were:
- more options for traveling between islands, for individuals;
- lower costs for traveling between islands, especially for families;
- additional business oportunities for companies based in Hawaii, wanting to expend on other islands.
- a more fun way to travel between islands.
On the "con" side, the arguments were:
- significant environmental impact. There were concerns about protecting marine life but also the possibility of spreading invasive species from one island to another.
- "crime contamination". Crime would travel easier between islands.
- bringing one's own car on the ferry would add to a certain's island polution.
This project was financed by the government and "pushed" by the government. 240 people are unemployed as of yesterday.
For more information on this issue, please check www.mauinews.com
Major progress was made in regards to building a hospital on West Maui, after more than decades of efforts and lobbying by the local community. Joe Pluta with West Maui Taxpayers Association and Brian Hoyle with Newport Hospital Corporation are the be thanked for their hard work and commitment to this project.
And now the project has received its third and final recommendation for approval and is moving forward!
Given the fact that there is only one two lane road connecting West Maui to the hospital in Kahului and that this road can often have traffic jams or simply be closed, a lot of residents are starting to feel relief in regards to managing their healthcare.
Kaanapali Shores is a direct oceanfront resort on prestigious N Kaanapali Beach, with two pools and jacuzzis, shops, restaurant, 24 h front desk, concierge and valet parking. A true Hawaiian resort with everything you need for the best vacation, right at your finger tips! Located on the eighth floor, this unit is the perfect spot for watching whales and enjoying stunning views of the Pacific Ocean. Property is managed by Resortquest, who has a proven record of efficient management, that translates in high occupancy rates. Maintenance fees cover all utilities ( including electricity and central air), insurance, lanscaping and maintenance of the pool.
The rental program at Kaanapali Shores is actually a rental pool. This means that all income for similar units go into a pool and gets redistributed based on a certain algorythm, previously determind by the developer. Thus, rented or not, your unit may still bring you monthly income!
One definitely needs to consider investing at Kaanapali Shores. Traditionally, 1bd units are the ones that can ensure the highest occupancy rates and thus a higher income. Please contact me directly for exact rental income numbers for unit 820.
FEATURES for unit 820:
1 bedroom, 1 bath
Fee Simple
806 sf living area
Living room, kitchen and masterbedroom have fantastic ocean views
Great spot for whale watching
Direct oceanfront resort on prestigious Kaanapali Beach
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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