hilo hawaii real estate: Tenant Notice - 07/08/11 10:03 AM
The contract you received on your rental property looks good. The buyer does, however, need to get a loan in order to complete the purchase. There’s also a short sale that needs to be processed; lots of balls in the air. Your REALTOR® explains that tenants, by law, are entitled to a 45 day notice to vacate. Being the faithful reader that you are, you recall that appraisals take at least a month to 45 days to complete.  You do the mental math and realize that 60 days for loan approval and 45 days for tenant notice equal almost 4 months … (0 comments)

hilo hawaii real estate: Previewing Second Quarter 2011 Stats - 07/07/11 06:10 AM
With national reports still putting a negative spin on the housing market, I thought it might be interesting to look at sold activity in as broad a sampling of our local markets as possible. Once second quarter stats are out, additional detail and my own personal spin will be added for selected markets. One thing is clear, there’s a lot of activity in East Hawaii. In fact, our office which consistently ranks among the busiest in East Hawaii, is experiencing activity levels far above last year*. If you don’t see your neighborhood, let me know. I’m happy to provide information for … (0 comments)

hilo hawaii real estate: When It’s Time To Take A Hike! - 06/24/11 06:50 AM
The standard provisions of our listing agreement obligate the seller to help sell the property, not only in a general sense, but specifically by preparing the home for showings, allowing access for required inspections, securing belongings and allowing a lockbox to be installed While we encourage seller assistance and cooperation, it’s sometimes counter-productive for sellers to actually walk potential buyers through the property. Here’s why. I spend a good amount of time with buyers prior to showings. Discovering their preferences is a large part of my preparation. While a house with a steep driveway may be a problem for one buyer, … (2 comments)

hilo hawaii real estate: Slowing Distress...Will Act 48 Help? - 06/17/11 10:56 AM
According to a recent  Standard & Poor’s report quoted in one of our professional publications**, “it  may take 49 months, or more than 4 years, to clear the supply of distressed properties that were on the market at the end of the fourth quarter of 2010.”  They estimate an increase of 40% over the fourth quarter of 2009. It is widely held that the economy follows the housing market. It follows then that the need to clear distressed properties (foreclosures and short sales) is critical and yet, Act 48, which stands to slow the process locally, is being applauded by many … (0 comments)

hilo hawaii real estate: Condominimized Properties - 06/10/11 12:05 PM
What do you call ownership of residential airspace? Since 1961, the concept of condominium apartment ownership has blossomed thru-out the country. Interestingly, Hawaii was the first state to enact legislation allowing for development of condominium projects. Condo conversions, the process of converting a hotel to a residential condominium property, have been implemented wherever possible for years.  Of the Big Island, most have been in Kona, but Hilo Lagoon and Waiakea Villas were both originally hotel properties that were later converted to condominiums.  Many don’t realize that condominium ownership isn’t limited to multi-family or even residential use. In fact, the offices in … (1 comments)

hilo hawaii real estate: Sign, Sign, Everyone Must Sign! - 06/03/11 08:55 AM
My REALTOR® friend, Patti, reminded me of one of the most basic rules of real estate; it takes two to sell and one to buy. This adage echoes what should be common sense and yet, it’s fairly common for us to receive listings and offers signed by other than the principal (the real purchaser or the seller) or a representative with proper power of attorney. When listing a property, REALTORS® must usually depend (initially) on real property tax records and information given by the seller. Suffice it to say that there are sometimes ownership surprises when the title report is received.  … (0 comments)

hilo hawaii real estate: How Shall I Address You? - 05/31/11 03:23 AM
In Hawaii County, the Planning Director is responsible for assigning addresses and although mail delivery may have once been the primary reason for displaying a street address, the implementation of the 9-1-1 system dictated the assignment of a street address to ALL Hawaii properties. Addresses are assigned as part of the building permit process. Other owners needing address assignments can apply by providing a plot plan along with their TMK number. Interestingly, addresses are assigned according to the location of the driveway. If that changes, the address could change. Even numbers are always on the right and not all addresses have … (0 comments)

hilo hawaii real estate: Being There For the Buyer - 05/20/11 09:15 AM
Basic to every real estate sale is the issue of representation. The concept of proper representation can naturally be very subjective. For instance, when a seller garners top dollar, they naturally report they were well-represented. Interestingly, sellers who get top dollar early in the listing often wonder if their agent under-valued their property. Hence, they question how well they were represented. Truth is, of course, that properly priced property should sell quickly. Sellers choose representation based largely on an agent’s knowledge of the local market. For this reason, sellers normally solicit the services of an agent they feel has their finger … (0 comments)

hilo hawaii real estate: Living on Ag Land - 05/13/11 01:21 PM
Here’s one to ponder! Hawaii Revised Statues, the laws that govern our State, do not allow residential dwellings on Agricultural land unless the dwelling is related to an agricultural activity (i.e., a farm dwelling). In other words, dwellings on agricultural lands are supposed to be used in conjunction with the operation of a farm. The statute imposes a $5000 fine for each violation. If you fail to remove the violation within 6 months, an additional $5000 fine can be levied. At the same time, Chapter 25 (25-5-70b) of our County Code allows for the construction of one single family dwelling on … (0 comments)

hilo hawaii real estate: Well, Well, Well - 05/06/11 10:06 AM
During my last tour of active duty, I commuted to Oahu. It's funny the things you miss about home. I missed hearing the rain but most of all, I missed our Hilo water. It's estimated that 90% of our water comes from ground water; water beneath the ground. The majority of homes throughout the state are serviced by municipal water systems, most of which depend on groundwater. This is not the case on Hawaii Island where the sheer size creates a limitation on the households serviced by municipal water. Many homes depend on alternate sources such as catchment (see catchment info … (0 comments)

hilo hawaii real estate: Catchment "101" - 04/22/11 03:49 PM
You may be surprised to learn that homes all over the world depend on catchment systems. The report "Guidelines on Rainwater Catchment Systems for Hawaii", estimated that in 2010, some 30-60,000 people in this state rely on catchment systems for their basic water needs. Time was, catchment systems were deemed inferior to "piped" public water. In the past, limited inventory coupled with the desire of (especially) off-island purchasers to obtain respite from cramped housing spaces has made the issue of catchment very much a "non-issue". This is especially true in East Hawaii where rainfall amounts generally insure tanks are kept generously … (0 comments)

hilo hawaii real estate: 1st Quarter 2011 Update: Time to Become a Statistic! - 04/20/11 06:57 AM
First quarter updates are always difficult to interpret. For a number of reasons, we try to close as many sales as possible before the end of the year; buyers want to close so that they can apply for their homestead exemption, sellers want to close for tax purposes, REALTORS® want to close because it favors their commission split. Closings during the 4th quarter, therefore, are normally higher than any other time of year. Still, our broker reports an extremely brisk first quarter in terms of new escrows and contracts. So, even when the numbers don't indicate market improvement, we still see … (0 comments)

hilo hawaii real estate: The Times Are Exchanging - 04/08/11 06:39 AM
The tax consequences of trading spaces are fairly painless if you participate in an Internal Revenue Code Section 1031 tax deferred exchange. Such exchanges allow sellers to defer taxable gain on investment properties. The key to this concept is that taxes are deferred which means, of course, that at some point, they must be paid. While specific rules are but a quick “Google” or “Yahoo” search away, there are critical reminders and suggestions which aren’t part of any published guidelines. Your purchase agreement is one of the first places an exchange can get into trouble. It’s fairly common for me to … (0 comments)

hilo hawaii real estate: How Much Is It Worth? (aka: Why HVCC Doesn’t Work) - 04/01/11 01:45 PM
I certainly wish I had a nickel for every time someone asked how much their home is worth. Value is represented in various ways: construction cost, assessor’s value, insurance value, and loan value, to name a few. Here’s a bit of practical insight into the current appraisal process. Lenders still depend on appraisers to provide an objective opinion of value, but a new twist called HVCC prohibits lenders from speaking directly to the appraiser. Appraisals are generally ordered through a disinterested third party vendor called an appraisal management company (AMC). Lenders rarely know who has the appraisal order until an inspection … (1 comments)

hilo hawaii real estate: Attracting Buyers - 03/18/11 01:13 PM
There’s no denying that the housing market is hugely competitive at the moment. When there are more homes than buyers in a neighborhood, it is referred to as a “buyer’s market”. This swings the bargaining pendulum squarely on the side of the buyer. The challenge for sellers is to balance the pendulum. Pricing is critical. Overpricing may cause the buyer to eliminate a home before they even see it. An overpriced home may be automatically excluded from the buyer’s candidate list.Curb appeal is another important issue. The buyer should like what they see. Current statistics indicate that a home is 2,000 … (1 comments)

hilo hawaii real estate: Winning Your "Case!" - 03/04/11 05:04 AM
Many are surprised to learn there are usually no initial costs to list their home.  Naturally, there are eventual costs which are normally deducted from the proceeds. Agent commissions are, of course, the largest expense.  A close look may help explain what the seller eventually pays for.  Competent agents do extensive research prior meeting the seller.  The process starts with reviewing tax records, permits, the title report and, most importantly, assessing current market trends.  Closing cost estimates and a plan for effectively marketing the property should be presented for your approval.  Once listing terms are set, professional photos are shot.  Virtual … (2 comments)

hilo hawaii real estate: Hawaii Foreclosure Basics - 02/11/11 09:30 AM
Last week's front page article, related to a bill winding its way through our State legislature, may have confused those needing a primer on the basics of foreclosures. While many states limit foreclosure proceedings to either judicial or non-judicial, most Hawaii homes may be subject to either. Interestingly, the homeowner has no say in the type of procedure initiated, but the lender does. The unintended consequence of the non-judicial process has caused the legislature to re-think this unilateral arrangement. Non-judicial foreclosure laws in Hawaii have been in effect for only about 10 years, and yet most foreclosures today follow these abbreviated … (0 comments)