Hawaii real estate blog

Kaimuki High School Performing Arts Center Benefit Concert

Hawaii homes (Coldwell Banker Pacific Properties) — Sun, 04 Oct 2009 19:31:20 -0500

With Hawaii's school budget cuts these days, students, teachers and parents are doing what they can to save their schools' programs. On September 5, 2009 the Kaimuki High School Performing Arts Center held a benefit concert. Various musicians and comedians volunteered their time to help out. We were lucky enough to hear about the concert and spent the evening enjoying the food and entertainment.

The concert started at 3 p.m. in the afternoon. We showed up for a late dinner, around 7 p.m. In the Kaimuki High School cafeteria, we enjoyed a salad, spaghetti with garlic bread and dessert. Next, on the the Performing Arts Center to watch the show.

We arrived just in time to see Mel Cabang, a well known Hawaii comedian. It's been about 20 years since I last saw him performing live at a nightclub in Waikiki. Mel is hilarious. He makes fun of people in the audience and himself. People walking into the show while he's on stage - be prepared! He loves to poke fun at anyone and everyone.

After Mel left the stage, a group called "Vella" played some Hawaiian-style oldies music. Then to top it off, another group named "Soul Vibe by Big D" played their music, which to me sounded like Jawaiian or Hawaiian reggae style. This group was very popular with the high school kids.

By 10 p.m. or so it was getting past our bed time and we called it a night. Soul Vibe was still jamming. It was a great night of food and fun. And on top of that our admission fee benefited the Performing Arts Center of Kaimuki High School.

Organizers said it was financially a great success. Many people donated money and the artists were so kind to give their time. The event was not very crowded, maybe because it started at 3 p.m. and ended around 11 p.m. Maybe next year they'll shorten the event a bit to make things easier on themselves.

We're looking forward to it! Bring back Mel Cabang!

Mike Bates - Hawaii Realtor

Makaha Valley Towers in "The Informant" Movie

Hawaii homes (Coldwell Banker Pacific Properties) — Wed, 23 Sep 2009 16:02:49 -0500

My wife and I recently watched "The Informant" - a movie starring Matt Damon. The movie is based on a true story about a whistleblower at Archer Daniels Midland, a company in Decatur, Illinois.

The main character travels around the world and at one point he attends a meeting in Hawaii. The meeting and a golf outing take place at the Makaha Valley Country Club in West Oahu. In a golf scene the Makaha Valley Towers are a backdrop to the characters walking along the course. When you see the movie, keep an eye out for the Towers 'cause you'll only see them for a few seconds.

Back in the early 1990's (the period that the events in the movie occurred) this resort was actually the Sheraton Makaha. Back then I was an auditor for a CPA firm and actually audited the financials of the resort. We also had corporate events including golf outings there. It was and still is a nice resort, with great ocean views.

Well, go check it out and enjoy! You'll be surprised at how Matt Damon looks in this movie.

Aloha, Mike

Moana Vista condo heads to foreclosure

Hawaii homes (Coldwell Banker Pacific Properties) — Fri, 04 Sep 2009 20:43:41 -0500

Moana's sales office is closed and the salespeople have been instructed to turn in their keys. After much hope with the planned purchase of the property by OliverMcMillan has fallen through. The project is scheduled to be auctioned on September 25, 2009.

For buyers who signed up with Moana Vista, their funds are held in escrow. We expect them to receive full refunds of their deposits.

Keep an eye on the newspapers and TV news for more information about Moana Vista in the coming days.

Aloha, Mike

Kalihi Uka - affordable Honolulu living

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 22 Aug 2009 15:08:59 -0500

Buyers have taken action this summer, submitting offers and taking advantage of the market. Some of the drivers getting buyers moving are:

Low interest rates
$8k homebuyers tax credit
Falling home values

Even with price declines seen over the last few years, many buyers find it difficult to find a house in Honolulu that's in their price range. Well, there ARE deals available, it may take some searching outside of the traditional favorite neighborhoods.

Areas such as Kaimuki, Kapahulu and Hawaii Kai are desired by many people. When they see the lower priced homes with 1,000 square feet of interior area selling for $550,000 and up they wonder where the deals are?

Kalihi Uka has some great homes available in the high $300's to mid $400's. Understand that these prices are not for new, top notch condition homes. You CAN get a sweet deal on a home that's in need of some work.

We currently have a house for sale on Murphy Street, MLS 2909334. Originally listed at $360,000, the price was reduced to $335,000 on 10/19/09.. In today's market it's a great price for a home of this size. The house is owner occupied, in time it WILL need some TLC. This is probably best suited to a contractor.

If you're interested in seeing it, please e-mail or call Mike at (808) 548-1220.

Mike Bates (RA)

Coldwell Banker Pacific Properties

1909 Ala Wai Blvd #C-2

Honolulu, HI 96815

Surf Oahu this summer!

Hawaii homes (Coldwell Banker Pacific Properties) — Fri, 31 Jul 2009 13:56:16 -0500

During summer the surf action is mostly on the south shore of Oahu. We've had some great swells so far. Overhead sets, light winds and lots of fun!

Roy Vierra of RV's Surf Shop gave me a call and talked about the surf he's been catching at Ala Moana Bowls and Old Man's, including some overhead barrels! Roy's a full sized guy so catching a barrel is really something, in other words we're getting some great surf this summer!

Roy asked if I've been catching some waves. Yeah, there's been some fun stuff at Concessions at Ala Moana Beach Park. I meet my brother in law first thing in the morning and then scoot off to work. Diamond Head is another favorite as long as the wind is not too strong.

Roy said the summer swells are bringing customers to his shop and board sales are doing well. RV's has some great deals on new boards as well as used boards. Stop by and check it out sometime. The staff is really friendly. Besides Roy, there's Sanae, Kapena, Mike and a few others. RV's sells surf-related equipment too, including leashes, wax, fins and traction pads.

South Shore Surf - where to go?

We're talking about Waikiki, Diamond Head, Ala Moana, Black Point, and Portlock. Ewa and Makaha are on the west side of the island, they still catch the summer swells.

If you want to learn how to surf, don't be shy, take a lesson! It will save you time, frustration and it's safer than trying to learn on your own. Roy is a surf instructor, give him a call!

RV's Ocean is located at 3348 Cambell Avenue in Kapahulu. They're open from 11 a.m. to 5:30 p.m. daily. Call 732-7137 to schedule a lesson of for driving directions.

Mike Bates

Hawaii Realtor

Good Tips For Realtors

Hawaii homes (Coldwell Banker Pacific Properties) — Thu, 09 Jul 2009 03:05:07 -0500

I read an article in the newspaper a few months back about mistakes people make on job interviews. It struck me that many of these mistakes might also apply to realtors when meeting with homeowners for listings presentations. Here are some mistakes (modified for real estate).

- Don't Prepare - Not being able to answer questions such as: How many homes have sold in this neighborhood this year? What's the median sale price? Days on market?

- Dress Inappropriately - Well, I'm in Hawaii and things are a bit different here. Aloha shirts and shorts are the norm. I think we might be concerned with OVERdressing as well as UNDERdressing. For men, don't wear a three piece suit if the seller is wearing a t-shirt and rubber slippers. And don't wear a t-shirt with holes in it. For women, it seems that skirts at least to the knees or pants are appropriate in the islands.

- Poor Communication Skills - Positively connect with the seller. Shake hands, make eye contact and show confidence without being an arrogant know-it-all.

- Too Much Communication - Turn off your cell phone or leave it in the car, unless you're expecting a REALLY urgent message. Don't make the seller feel like a nobody.

- Talking Too Much - Answer questions concisely, don't be a "Portagee" and ramble on for days.

- Talking Too Little - Being short and giving "Yes" and "No" answers will not convince the seller you have the communication skills needed to sell their home.

- Avoid Fuzzy Facts - Make sure you're accurate when you give out information. If you don't know, tell the person you'd like to check. Be sure that the info you provide is accurate.

- Giving The Wrong Answer - Listen to the seller's question carefully and make sure you answer it, instead of answering another question that wasn't asked.

- Badmouthing Others - Saying bad things about other homeowners, buyers and real estate agents does not make you look better. Be nice and show Aloha!

- Forgetting To Follow Up - Take notes and follow up on the items you talked about. If not, the seller will respond to the other realtor who did the follow up.

It's summer time! Buying season is here and interest rates are back below 5% - let's sell some homes!

Aloha, Mike Bates

Hawaii realtor

Iolani School purchases leasehold property in Kapiolani neighborhood

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 04 Jul 2009 23:21:38 -0500

On June 30th 2009, Iolani School announced that it purchase a large parcel of leasehold land owned by Lum Yip Kee Ltd. and Lum Chang Tai Inc. The price - $23 million dollars.

The highlighted area below shows the property purchased by Iolani School. Map courtesy of Google Maps.

The land consists of approxmately 21 properties situated on a block of land in a prime area of Honolulu. It's bordered by Date and Laau Streets, near the Ala Wai Golf Course and Kapiolani Blvd. Nearby neighborhoods include Waikiki, Kaimuki and Kapahulu.

The purchase includes a private road (Laau Street), four vacant lots, two individually-owned apartment buildings and nine coop buildings - Iolani Banyan, Lani Home, Laau Gardens, Iolani Gardens, Princess Anne Apartments, Canal House, Hale Laau, Hale Laau II, and Diana Apartments.

The lessors are selling the property in fee simple and are not offering the fee to current lessees. Many of the lessees are owner occupants.

Leases expire in early December, 2012. That leaves three years and several months for current lessees to use their properties or sell them. Iolani School has indicated that it will convert the area to other uses in a gradual manner. This may mean that occupants will have a chance to extend their leases under the new lessor.

Obviously, many lessees were hoping to see the fee offered on the units they purchased. It's not clear whether the purchase complies with section 514-C2 of Hawaii State Law.

§514C-2 Right of first refusal. When the leased fee interest in land under a condominium project or cooperative project or any part thereof is to be sold to any party other than the association of owners or the cooperative housing corporation, the seller shall first provide the board of directors of the association of owners or the cooperative housing corporation with written notice delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to any two of the president, vice-president, or managing agent (if any), of its intent to sell that interest, together with a complete and correct copy of the purchaser's written offer, which offer shall contain the full and complete terms thereof. The association of owners or cooperative housing corporation shall have a right of first refusal to purchase that leased fee interest for the same price as is contained in the written purchase offer. [L 1988, c 298, pt of §1; am L 2008, c 28, §33]

There may be hope yet for lessees on Date and Laau Streets. I imagine some of the lessees are going to start making some noise about getting their first right of refusal to buy these properties. This could be in interesting show! It's a prime area for affordable living in town, close to the beaches and Waikiki. In recent years, lease prices of properties in the area have been in the $20,000 - $50,000 range, making them good investments for owner occupants as well as investors.

Aloha, Mike Bates

Oahu realtor

Honolulu - the most liveable city in the U.S.

Hawaii homes (Coldwell Banker Pacific Properties) — Tue, 23 Jun 2009 03:47:28 -0500

This year's liveable city ratings have been published by Monocle Magazine. Honolulu ranks first in the United States! Many Hawaii residents have known it for a long time, it's still nice to hear it from another source though!

The top city worldwide was Zurich, Switzerland. Honolulu is 11th worldwide.

Monocle Magazine noted Honolulu has a "combination of big-city excitement and natural beauty."

Here's a photo of the shoreline along Kahala and into Waialae. Natural beauty is showing every day in Honolulu!

If you're looking for your own piece of paradise in Honolulu or other ares in Hawaii, please contact me!

Aloha, Mike Bates

Oahu realtor

Internet scammers just don't give up

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 13 Jun 2009 14:05:19 -0500

I received an interesting e-mail yesterday regarding a listing at Waialae Iki. Check it out below. Note - I deleted some of the contact info, just in case the scammers used the phone and e-mail address of an innocent person:

________________________________________________________________

Welcome to Western Union Send Money Worldwide

Attention:

The INTERNATIONAL MONETARY FUND contacted us for your compensation of $850.000.00 USD directed in cash credited to file KTU/9023118308 at the owner of this email
address a couple of hours ago due to your allocated security code.

We are unable to complete a transfer directed at an email address, so we require some more information in order to complete this transfer. In order to resolve this problem,please
email via Western Union Solicitors Fund verification Department; E-mail (customercare111) As soon as this information is received,and you have complied with the requirements of payment of the western union charges $250USD, payment will be made to your nominated bank account or at the counter directly from The Western Union Transfering Bank.

Sincerely,
Rev.John Hillary. Direct Line +xxx-xx189407

________________________________________________________________

So let's see, someone wants to wire the full purchase price of the house, sight unseen, no questions asked? They didn't even sign a purchase contract! Oh, and I see they want me to send $250 so I can collect $850,000.

Why would the International Monetary Fund get involved with a wire transfer? They are busy doing research, lending money to countries in need and gathering statistics. I can't imagine that the IMF would contact someone about a wire transfer that didn't go through.

In a television special on CNBC the other day, reporters visited Nigeria, where many of these scams originate. Rumors are that one scammer made $40 million so far this year through transactions like this, promising money after they get your bank account number. Don't do it!

Aloha, Mike

Hawaii realtor

June 11th is King Kamehameha Day in Hawaii

Hawaii homes (Coldwell Banker Pacific Properties) — Thu, 11 Jun 2009 18:02:58 -0500

Today, June 11th is a state holiday in Hawaii. It's Kamehameha Day, celebrating the king who united the Hawaiian Islands under one rule back in 1795.

Since it's a state holiday, most state offices are closed. Many private businesses also observe the day.

Telltale signs for Hawaii residents:

- Light traffic this morning.

- Plenty of people at Ala Moana Beach Park.

- Nobody answered the phone at a City and County of Honolulu office I called this morning.

- Nobody answered the phone at a private company I called this morning.

I checked around and the following City and County services ARE operating today:

- Honolulu Zoo

- Public Golf Courses, such as Ala Wai, Pali, Makalena, West Loch etc.

Also, metered parking is free in most locations, except for Kalakaua Avenue at Kapiolani Park. I wonder how they decided on that?

Tonight, KGMB Channel 9 will have a TV special at 6:30 p.m. celebrating Hawaii's special lifestyle and culture. Check it out if you're at home!

Aloha, Mike Bates

Hawaii realtor

Ala Moana Hotel Condo - not a great investment these days

Hawaii homes (Coldwell Banker Pacific Properties) — Thu, 21 May 2009 03:56:49 -0500

This week I had two customers inquiring about condo hotel (condotel) units for sale. Both customers are investors, hoping to take advantage of lower prices in Hawaii's weak real estate market.

We looked at several condotel buildings and the buyers decided on the Ala Moana Hotel Condo. This is one of the highest-quality condotels around. In the $100k price range, it is hands down the best.

The economic climate for condotels has changed dramatically recently

Here's what we learned as we looked at condotel listings.

These days, lenders are very conservative. There are just a handful of lenders that will make a loan for a condotel unit and those who do will typically require a 40% downpayment!

When room occupancy rates were high and loans were easy to get, prices were higher and investors could get a return on their investment. The Ala Moana Hotel Condo has suffered significant price declines. Units are selling for about 50- 60% of what their owners bought them for a couple of years ago. What happened?

1) Maintenance fees have risen. In late 2005, the 246 square foot units had $386 monthly maintenance fees. Now those units have fees in the $456 - $630 range. Causes for the fee increases include oil prices, which affect electricity costs, and budget revisions to keep the reserve fund at adequate levels.

2) In good times, occupancy rates were 80-90%. These days (May 2009), Ala Moana Hotel Condo is running around 30-40% occupancy. The recession is affecting travel to Hawaii and these unit owners are seeing their monthly revenue fall.

The Bottom Line for Ala Moana Hotel Condo Buyers

If you're planning to get a loan and buy here, do not expect to have positive cashflow on a monthly basis. In time, occupancy levels will rise and revenue will increase which may result in positive returns.

If you're a cash buyer, your unit can probably break even on cash flow for now.

These days, many investors are selling off assets and moving to cash. When the economy turns around and lending standards change, properties like the Ala Moana Hotel Condo will be more appealing and prices will most likely rise. Personally, I think prices will rise QUICKLY as the economy recovers. Just take a look at what happened in the period after 9/11! We had steady growth for about five years.

Looking for other buying opportunities? Contact Mike and tell us what you're looking for. We'll search the Oahu MLS listings and show you where the price declines are!

Aloha, Mike Bates

Buy this Punaluu Beach House

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 16 May 2009 15:06:28 -0500

Punaluu Beach house in Hawaii

Who wants a home on a sandy beach in Hawaii? Any takers? How about 3/4 acres of land, is that okay too?

Now comes the more difficult question - the price! How much are you willing to pay or how much can you afford?

We have the lowest priced sandy beach frontage house with land for sale on Oahu and yes, there's a catch.

This land is leased and whoever "buys" it actually becomes a lessee. The lease has 18 years remaining, expiring on September 30, 2027. Monthly lease rent is fixed at $3,000.

The property was listed on April 3, 2009 for $175,000 and we recently reduced the price to $140,000. Think that price is too high for a lease? Take a look at the listings of homes for sale with sandy beach frontage, priced up to $1,000,000 by clicking the link below.

Oahu homes with sandy beach frontage to $1 million

The next lowest priced house is on 5,000 square feet of land and priced at $549,000. All of the other listings in this price range have small lots in the 5,000 - 12,500 square foot range.

Hawaii Leasehold Property Questions and Answers

Q. What type of person buys a leasehold property like this?

A. Someone who either doesn't want to tie up large amounts of money in real estate and can afford the $3,000 monthly lease rent.

Plenty of people love the idea of having a sandy beach close to their front door. This house in Punaluu offers that beach.

Q. Is there a potential for profit in the future?

A. Yes, however it's not as certain as a fee simple purchase. If the lessor decides to offer the fee simple interest in this property, the lessee can buy it and hold then later sell at market prices. When a lessor sells "the fee" it is usually at a favorable price. There's no guarantee on it though.

Another possibility is that the real estate market will pick up in the next cycle (say in the next five to ten years) and everything real estate related in Hawaii goes up in value. Should that occur, this property might appreciate handsomely, even if the fee is not offered.

Think that's ridiculous? Think again. We can e-mail examples of specific leasehold properties, showing how their values went up and down during market cycles.

What About the House - is it in Good Condition?

The house itself is in fair condition, built in the 1930's. The current owners made extensive renovations without obtaining permits. Perhaps because this is a beachfront property, the building permits department has been very tough with the owners and has not allowed him to obtain permits "after the fact."

The house is habitable (the owners have lived there for years), although it's likely that the buyer will either fix the house up some more or perhaps tear it down and start all over.

For more pictures, please visit our Hawaii Featured Listings page.

Does this sound like it might be worth a look? Contact Mike Bates (808) 548-1220 and arrange a showing!

Aloha, Mike

Hawaii Realtor

Oahu property tax auction

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 16 May 2009 03:58:49 -0500

Oahu Property Tax Foreclosure Auction

On May 5, 2009 the City and County of Honolulu held its first tax lien auction in two years. Two properties were advertised. One parcel had a upset price of $20,023.87 and another had an $8,169.45 upset price.

You know how people get excited about buying foreclosures! Some friends of mine were interested in placing a bid, however they were going on a vacation in early May. They asked me to bid on their behalf and I said "Okay!"

How a Tax Lien Auction Works

Tax lien auctions are different from the auctions held at the courthouse. At the tax lien auction, the winning bidder must immediately pay the full purchase price. Methods of payment include cash, certified check, cashiers check or wire transfer arranged prior to the auction. In other words, don't plan on bidding and then going to your bank for a mortgage loan.

Another important thing to know is that the taxpayer whose property was auctioned off may redeem the property from the winning bidder! The taxpayer can do this by repaying the winning bidder the price he paid at the auction plus all costs he was required to pay, such as the deed recordation fee. Interest will also be added on at the rate of 12% per year. The taxpayer has one year to buy back the property from the winning bidder.

Hmmm. So a winning bidder should be very careful about the improvements he makes to a property in the first year. Extensive repairs and renovations might end up going back to the previous owner if he happens to get the money together to redeem it.

Tax Auction on May 5, 2009

The auction was held at the Mission Memorial Auditorium at 550 South King Street, near Honolulu Hale downtown. I entered the auditorium, registered and went behind a curtain to show the organizers my "proof of funds." Actually, it was "proof of funds" for my friends, whom I was bidding for. They gave me one of those paddles with a number on it, to hold up when I place a bid.

When everyone was registered, the Director of budget and Fiscal Services for Honolulu went to the podium and announced the auction. He read a prepared statement and asked if there were any questions. Several hands went into the air.

One bidder had done some research on the first property, located on Hanalei Street in Waianae. The bidder said he had talked with the City building permits department. He said the property owner had made unpermitted additions which need to be removed or permitted. Fines were piling up at around $150 per day. He asked if the successful bidder would be purchasing the property "free and clear of all liens" as described in the public notice. The Director was unsure and he called a recess.

After conferring with other officials, the Director returned and said there is no guarantee that the building permit fines would be waived. Another bidder asked about mortgages. If the property had a mortgage, would the winning bidder own it be free and clear of the mortgage? The Director conferred briefly with others and then announced that "free and clear" means the bidder owns the property free and clear of property tax liens and that's all that's warranteed from this auction.

There seemed to be other issues and the Director announced that the first auction would be postponed for a short time. The second auction, with the $8,169.45 upset price would be held now.

This was the auction my friends were interested in. They gave me $8,200 to bid with. They had hoped that the bidding audience would be small and we'd "get chance." I could see about 30-40 potential bidders in the room and I wasn't sure how it would go!

The property being auctioned was a three bedroom, two bath home in Makakilo, built in 1968. Its tax assessed value was $425,700.

Bidding started at $8,269.45 and several paddles went up. The next bid was $9,000 and several more paddles went up. We were already out of the running!

I watched the bidding escalate. Most bids were in $1,000 increments. Once in awhile when there were lots of paddles going up, the auctioneer raised the price in $5,000 increments.

How High Do You Think the Price Went?

As the bidding price escalated, the number of bidders went down to a handful. The bids got up to $145,000 and there were two bidders left. Coincidentally, they were sitting a few feet apart from each other. The bids went up in $1,000 and 5,000 increments. Finally, the guy in the red won at $226,000!

Although I haven't seen the house, you can be pretty sure it was a good deal. There are just a handful of homes for sale on the entire island of Oahu in this price range. Basically, the bidder bought a house for a condo price. With some conditions, such as the one year redemption period mentioned above.

After the auction, the winning bidder went and sat with the officials for a quite some time as they did whatever they had to do to take care of his payment. I wanted to stay and see the results of the other auction but I had to go.

What I Learned at the Honolulu Property Tax Auction

Successful bidders CAN get a great deal. As with foreclosure auctions at the courthouse, cash is KING. And be careful about that one year redemption period! You don't want to completely remodel a house and then have the old owner come back and buy it for the winning bid price plus interest nine months later.

Looking for House Deals on Oahu?

There are plenty of MLS foreclosures, short sales, lender sales and even regular sales that are very attractive these days. Lower prices, lower interest rates and that $8,000 Federal tax credit to first time homebuyers can be a great buyers incentive.

Call Mike Bates at (808) 548-1220 to get started!

Visit our Hawaii Real Estate website

Sellers disclosures and building permits

Hawaii homes (Coldwell Banker Pacific Properties) — Wed, 06 May 2009 19:15:49 -0500

This is based on a true story which happened recently.

Seller fixed up his condo very nicely. Seller puts the property on the market and gets an offer, which is accepted.

Buyer decides to conduct his own home inspection. He has some experience in the construction business and decides the unit is okay.

Seller's disclosures are delivered to the buyer. Seller describes in great detail the improvements made. Some of the things mentioned are:

- Electrical outlets and fixtures replaced by seller, who is not a licensed electrician, no warranties expressed or implied.

- Plumbing pipes changed from galvanized to copper by seller, who is not a licensed plumber, no warranties expressed or implied.

- Seller removed a shoji door (sliding divider) and added fixed divider wall to the studio condo, now calling it a one bedroom and listing as a one bedroom on the Oahu MLS. In the sellers disclosures he notes that he doesn't know if he needs permission from the condo association, nor did he obtain building permits.

Buyer received sellers disclosures and believes the majority of the work done by the seller should have been permitted. Buyer and buyer's agent review requirements for building permits in Honolulu. The answer is not easy. City and County building permit rules attach values to improvements in determining whether a permit is required. For example, a building permit is required "For any electrical or plumbing work that is greater than $500 in a 12 month period."

The buyer figured that the electrical and plumbing work done should be valued greater than $500. The seller figured the value was less.

Buyer continues investigation, following up with the Honolulu Department of Planning and Permitting. Buyer calls several divisions within the DPP, including:

- Building Permit Issuance

- Electrical

- Plumbing

- Building Code branch

Buyer sends sellers disclosures to the DPP for opinions in determining whether permits are required. The buyer is concerned about purchasing the property and having to remove additions later on since the work was done without a permit.

Buyer asks the seller to obtain building permits or reduce the price substantially. Seller says no.

Shortly afterwards, the DPP sends inspectors to the seller's condo. They tell the seller violations were reported and they must investigate. The seller grudgingly allows the DPP inspectors to enter the property.

Finding: Inspectors tell the seller he must remove the wall he created, which was originally a sliding shoji door. All other additions do not require a permit.

Result: The transaction is cancelled. Seller must remove the wall and then puts the property back on the market.

Observations

Some sellers put very little effort into sellers disclosures, marking off "NTMK" (not to my knowledge) on nearly everything, even if it's not true. They just want to get the document completed and get past that contingency.

Buyers appreciate thorough sellers disclosures. If the disclosures are delivered prior to the home inspection, the inspector will often take a close look at items mentioned in the disclosures.

Statements such as "I don't know if it's okay with the AOAO and I am not willing to get building permits" can become a problem for the seller.

If a buyer really wants a specific property, reporting seller violations is not a prudent tactic. The seller is likely to avoid dealing with the buyer again.

Aloha, Mike Bates

Hawaii realtor

Diamond Head real estate at lower prices

Hawaii homes (Coldwell Banker Pacific Properties) — Mon, 27 Apr 2009 19:17:49 -0500

I was googling around the internet recently using search terms suitable for properties here in Hawaii. Then I came across some interesting listings. Someone in Mississippi decided to name a town after Hawaii's most famous landmark, Diamond Head!

Even more interesting, the streets in Diamondhead Mississippi have Hawaiian names as well!

Examples are: Hilo Way; Analii Street; Ahia Court; Kaimuki Court; Mahalo Hui Drive; Kapalama Drive; Ala Moana Street; Kahana Street; Maili Way; Maunalani Place; Molokai Village and Lanai Village. I guess when Diamondhead Mississippi residents visit Hawaii they have an easier time pronouncing our street names!

Check it out on Google Maps.

The people who named these streets picked good ones from some of our top neighborhoods In Hawaii:

Analii Street is in Waialae Iki.

Kaimuki is a neighborhood near Diamond Head.

Maili Way is in Manoa, near the University of Hawaii campus.

A search of Activerain found one member that sells homes at Diamondhead Mississippi, Tricia Cash.

I checked some listings and found Diamondhead Mississippi real estate costs a fraction of what Diamond Head Hawaii real estate goes for. I'll keep that in mind, should I know of some Hawaii residents who decide on a move to Mississippi.

Aloha, Mike Bates

Hawaii Realtor

Moana Vista condominium

Hawaii homes (Coldwell Banker Pacific Properties) — Fri, 24 Apr 2009 20:39:25 -0500

Hewaii's economy is slowing and people are looking for causes. Unemployment in our state is at 7% at a 30-year high. TV news stations frequently remind us that construction employment is a significant factor in the rate of job losses.

Moana Vista construction was halted in December 2008. The developer is seeking additional financing to complete the project. Options include finding a partner with financing to complete the building and selling off other real estate investment.

Fred and Annie Chan, owners of KC Development, have the Kaiser Estate in Portlock on the market for $80 million. The price seems quite high, considering the property is in need of major repairs. On the other hand, the estate covers more than five acres of land on a prime spot in east Oahu. If the a sale of the Kaiser Estate fetches anywhere near $80 million, it should at least be a shot in the arm for KC Development to get things rolling again.

Earlier this week the project's contractor, Hawaiian Dredging filed a lawsuit stating that $30 million is owed on the project. It appears to be a public statement to other possible creditors of Moana Vista.

Moana Vista's sales office remains open and prospective buyers are driven to the affordable pricing. It's hard to make long term plans when a buyer doesn't know how long it will be until the move-in date. Another concern is interest rates. They are very favorable right now but they can't be locked in at this point in time. When construction resumes and an accurate date is determined for completion it will be time to discuss locking in a rate - and where will they be then?

Buyers can be comforted in knowing that their deposits are held in escrow. The money cannot be spent until the final report for Moana Vista is issued and the buyers have had 30 days to review and approve the report. Buyers can cancel and get their money back, less a small escrow fee.

Question: Historically, which way do prices go in Hawaii? Answer: Up.

Ten years ago, lots of us were hemming and hawing about the direction of the market and what to do. Then prices took off. I believe those times will come again. This might be the time to plant the seeds for your next residence.

Please visit our Moana Vista webpage, which includes a price list.

Aloha, Mike Bates

Ilikai auction April 15th 2009

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 18 Apr 2009 17:44:40 -0500

I've been to the courthouse several times to watch foreclosure auctions. This was the most crowded auction I've seen so far. Several properties were up for sale, but the majority of the people in attendance were here to see the fate of the Ilikai Hotel.

Honolulu attorney, George Van Buren was the commissioner and auctioneer of the property. There was one bidder, IStar - which happens to be the lender that foreclosed on Anekona Companies. In the photo above, the bidder (attorney Stephen Mau) is shown, who represented IStar.

First, the 203 residential units were offered. IStar bid $35 million. Next, the 16 commercial units were offered. IStar bid $15 million. The whole bidding process took about a minute.

Anxious watchers included Local 5 union members wearing red t-shirts, who work at the Ilikai Hotel. I asked them what they thought of the auction. They said they were happy that one company, IStar won both auctions. They believe that IStar will be a good employer for them.

After the auction, George Van Buren was interviewed and he seemed pleased with the process. The sale is subject to court confirmation, which should take place in about 30 days. At the confirmation, other bidders are allowed to submit offers which are at least 5% above the current bid amounts.

IStar's bid for the residential properties amounts to approximately $172,000 per condo. In 2006 when Anekona Companies were having better times, they were selling residential units for more than $500,000 each to individuals. Shell Vacation Resorts bought another 43 units at an average of $409,000 each.

Anekona left a big mess for Ilikai Apartment Building owners and the homeowners association. When Bruce Anderson's businesses started failing, they quit paying the common charges on the units owned by Anekona.

Many feel it's a positive sign that IStar is taking over the units formerly owned by Anekona. We hope to see Ilikai residential unit prices rebound in the coming months. It will also be nice to see the commercial areas of the Ilikai fill up with new tenants.

Aloha, Mike Bates

Oahu MLS

My monk seal at Diamond Head photo was on TV

Hawaii homes (Coldwell Banker Pacific Properties) — Mon, 13 Apr 2009 21:30:45 -0500

On Easter Sunday, my wife and I met her brother and a few friends for some surfing at Diamond Head! When we got out of the water, we saw this monk seal relaxing on the beach.

The weather was nice and the monk seal looked quite content. He opened his eyes and looked at us a few times, then went back to sleep.

Those little yellow signs are posted by volunteers, reminding us to keep our distance and not bother the cute monk seals. I used a zoon lens to get this closeup.

I e-mailed the picture to KGMB9. They included it in the 6 p.m. and 10 p.m. news reports.

We're starting to see more sunny days and the weather is warming up in Honolulu. Life here is great!

Aloha, Mike Bates

Hawaii realtor

Ewa by Gentry Woodbridge

Hawaii homes (Coldwell Banker Pacific Properties) — Fri, 03 Apr 2009 22:40:35 -0500

Woodbridge is a neighborhood at Ewa by Gentry. This is an upscale area, where homes typically have 3-5 bedrooms and 3 baths, 2,600+ square feet interior and 5,000+ square foot lots.

Ewa by Gentry Woodbridge homes were built from 2002 to 2006 - they're comparatively new for a Hawaii neighborhood. Woodbridge is an ideal choice of neighborhood for large families looking for an affordable, upscale home.

Home prices have fallen in the past couple of years and deals can be found at Woodbridge. A quick check reveals that the majority of listings on the market now are priced below what the owners paid a couple of years ago. The difference between the current market prices and prices paid by owners sometimes goes beyond $100,000. Now's the time to "buy low" so we can "sell high" later!

View our Ewa by Gentry Woodbridge webpage and find a home that fits your needs. The page includes a comparative market analysis (CMA) report so you can see what homes have sold for recently.

Aloha, Mike Bates

Windows Vista problem fixers

Hawaii homes (Coldwell Banker Pacific Properties) — Tue, 31 Mar 2009 13:15:30 -0500

I've had a few problems with Windows Vista (lately) and searched all over the internet, including Microsoft's site for answers. It took awhile, but the problems were solved. I'll share the fixes here.

File Associations

Recently, I updated my computer by purchasing Adobe Photoshop CS4 (I'll just call it CS4). I unistalled Photoshop 7 (yes, it was old) and then installed CS4. The program worked fine. The problem was, I could no longer right-click a photo and edit it in CS4. Instead, I would have to open CS4, then open the file with CS4 in order to edit.

I followed Microsoft's step-by-step instructions to fix the problem and they didn't work. Not wanting to pay Microsoft a significant amount of money for person-to-person tech support, I searched online for an answer.

After looking over many websites and posting questions in forums and even Activerain, someone contacted me with a solution. There's a free program called OpenWithAdd which allows a user to add a program to the right-click list to "open with" in Windows Vista. If you have this problem, check it out, my CS4 now edits photos when I right-click them.

User Account Controls (UAC)

I installed a program and everytime I tried to run it, I would get the message that "You must be an administrator to run this program". If you're already an administrator, then why would the message appear?

Here's a fix. Download the Microsoft Application Compatibility Toolkit 5.0 directly from Microsoft. You can try following the directions on that same webpage, but there's another place with a better explanation how to fix the problem. The techrepublic blog has step-by-step instructions AND illustrations to help you with the install process. It's still a little tricky, for us non-computer whizzes, however once it's running properly those "You must be an administrator" messages will disappear.

Good luck!

Mike Bates

Hawaii real estate

Sneaky realtors

Hawaii homes (Coldwell Banker Pacific Properties) — Mon, 30 Mar 2009 21:48:19 -0500

We had an open house yesterday at the Waialae Iki listing. After setting up, an assistant greeted guests and I went to go look at a few other houses for prospective buyers.

An hour later, I returned to the listing and the assistant told me about the visitors that had come. I took a look at the sign in sheet and noticed two realtor business cards on the counter, next to the open house flyers. Both agents work for the same company and they arrived together. Then I noticed that MY business cards had been turned over and moved to the side, away from the flyers!

Now who do you think would do that? I am pretty certain it was the two realtors that left the cards next to my flyers. So sneaky, in my mind it's actions like that which give all realtors a bad reputation.

This wasn't the first time, either. Several months ago, during another open house an agent (not one of these two) looked at our listing, then put a stack of his business cards RIGHT ON TOP OF MINE! How blatant is that?

The assistant at that open house noticed the other agent's business cards within minutes and put them right where they belonged, in the trash!

These days, sales are slow and most of us realtors have to work harder to make a living. I ask that we all keep our ethics high and not resort to lowdown tactics to pickup, or even steal customers from other agents. Bad deeds might make a few dollars in the short run, but they willl bite back later in life or after that!

Aloha, Mike Bates

Hawaii real estate

House for sale at Waialae Iki

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 21 Mar 2009 15:10:08 -0500

This home is located at 1250 Laukahi Street in the Waialae Iki neighborhood. We're proud to say that it's the lowest priced home in the area!

Don't get the idea that it's a fixer upper. It was built in 1967 and renovations were done in recent years. The home features laminate flooring, split air conditioning in the main living area and window air conditioners for the bedrooms. The kitchen has been remodeled and has granite countertops. The bathrooms have matching granite around the sinks.

Two features high on many buyers' lists are views and convenience when it comes to driving. This house is excellent in both aspects.

The home is above the tree line along the Waialae-Kahala coastline, providing sweeping views of the Waialae Golf Course, the Kahala Hotel and the Pacific Ocean. A lanai accessible from the living room and large sliding glass windows give the home's residents plenty of options for enjoying these views.

Waialae Iki is near Kalani High School and the Kahala Mall. Driving to school and the shopping center takes minutes. Driving to downtown Honolulu is also easy, taking about 25 minutes - a good 10-15 minutes faster than commuting from Hawaii Kai. Factor in the drive home and you're saving nearly 1/2 hour per day in driving time! That means you'll save gas too.

Other neighborhood schools are Aina Haina Elementary and Niu Valley Middle School.

Interior area is 1,448 square feet with three bedrooms and two baths. There's also a two car garage. The lot size is 13,916 square feet. Take a look at the photo and you'll see the house is on a hillside. Still, there's a generous flat area behind the house for kids to play and home projects. The lot is terraced, there's more land above the house suitable for gardening and maybe a gazebo.

This house is a featured listing at our website, Hawaiihomes1.com. The price was recently reduced from $899,000 to $850,000. Come see it at Sunday's open house!

Directions: From Honolulu, take the H-1 Freeway past Kahala. The roadway transitions and becomes Kalanianaole Highway. Continue along the highway, passing the Ainakoa intersection, past the Kalaniiki intersection and then turn left at Laukahi Street. Look for our Open House on the left as you drive up Laukahi.

For further information, please call Mike Bates at (808) 548-1220.

Aloha!

Mike

Hawaii Realtor

Driving to downtown Honolulu

Hawaii homes (Coldwell Banker Pacific Properties) — Thu, 19 Mar 2009 00:49:59 -0500

On Oahu, for many of us it's all about getting to TOWN - that is, downtown Honolulu. Most of the island's employers are in Honolulu.

Here's a screen shot from the KGMB Channel 9 drive time report a few days ago. These times stay about the same from day to day, except when there's heavy rain or freeway closure due to an accident.

Kapolei is near Makakilo and Ewa Beach, we can expect similar drives coming from those areas into downtown.

What's the trade off for driving into town? Home prices. In town, home prices are much more expensive than they are for comparable homes in the outskirts. Large homes selling in neighborhoods such as Ocean Pointe and Kapolei Knolls might go for $600,000 - $700,000. Put a similar home in Nuuanu or Kaimuki it will probably be worth an extra $150,000 because of the location.

How about Hawaii Kai? That's a popular place. The drive to downtown Honolulu is about 12 miles and according to Channel 9, it generally takes about 35 minutes.

Note that there ARE employment opportunities in other neighborhoods besides downtown Honolulu. Kapolei is expanding its job base with a new Costco store, Target, Petco and others. Some executive positions are available too. The City and County of Honolulu also has offices in Kapolei.

Military personnel and civilians working on bases have diverse possibilities. Many military like Ewa and Kapolei because the home prices are more affordable and homes in these neighborhoods have features they like - such as garages, central air and interior area!

Looking for info about Oahu's neighborhoods and home prices? Want to know where the deals are?

Call Mike Bates (808) 548-1220 or send an e-mail (see the tab to the right of this blog).

Aloha, Mike

Understanding the Customer Full Page

Hawaii homes (Coldwell Banker Pacific Properties) — Sat, 14 Mar 2009 17:20:34 -0500

Talking on the phone with buyers and e-mailing listings is a standard procedure for Hawaii realtors. The Honolulu Board of Realtors uses the TEMPO system for searching the MLS and contacting customers.

TEMPO works great! We sometimes find that buyers have questions about properties that can be answered by taking a close look at the Customer Full Page, which we e-mail to them. Buyers might just see too much information and don't want to look line-by-line for answers to their questions.

I pulled up a current listing and added some highlighting and arrows to point out some of the more relevant information that buyers look for.

The info is posted to our website as the Honolulu Board of Realtors Customer Full Page.

If you haven't seen the Customer Full Page before, please note that this is not the normal page posted on our real estate websites. The Customer Full Page includes more detailed information. When you're getting more serious about buying a property, your realtor will e-mail the Customer Full Page to you.

Hopefully the highlighted info on our website will help you find the info you're looking for on the Customer Full Page.

Aloha, Mike Bates

Kailua Realtor

Ilikai auction date will be April 15, 2009

Hawaii homes (Coldwell Banker Pacific Properties) — Mon, 09 Mar 2009 23:34:50 -0500

Anekona Companies, the troubled developer of the Ilikai will see its interest in the property auctioned off on April 15th, 2009.

Brian Anderson, owner of Anekona, bought approximately 343 of the Ilikai's rooms and commercial spaces in July, 2006. One hundred and forty of the renovated rooms were successfully sold. As the real estate market hit its peak and turned downward, Anekona was stuck with condotel units that it couldn't sell for a profit.

Anekona's holdings at the Ilikai are currently 203 condo units and 16 commercial properties. Before we all get excited about bidding at the auction, please note that the units will be sold in bulk. Yes, one bidder can buy them all.

Individual owners are a bit relieved, while also concerned about changes to come. Part of the concern is with Anekona's unpaid maintenance and electric bills owed to the homeowners association and said to be in excess of $1 million.

Other headaches were the possible closure of the Ilikai. The former court-appointed receiver, Joe Toy had put closing on the table as a possibility. Mr. Toy said the Ilikai's income was not enough to keep Anekona's 203 units open unless Anekona's lender, IStar FM Loans LLC would fund the operation.

Apparently IStar didn't like what they were hearing and they asked a judge to replace Mr. Toy with George Van Buren, a Honolulu attorney. Mr. Van Buren was appointed in late February 2009 and he immediately announced that the Ilikai would remain open.

Buying Ilikai condos

Oahu's housing market has slowed significantly in the last year. Many owners of units for sale are selling at a loss. It's possible that prices could go down further. On the other hand, now that there's light at the end of the tunnel for Ilikai condo owners, prices may stabilize.

Click here to view condos for sale at the Ilikai

Visit our Hawaii foreclosures webpage and click foreclosure notices dated 3-15-09 to see auction info for the Ilikai.

Aloha, Mike Bates

Oahu MLS