Home Shoppe Hawaii: Honolulu, Kailua & More, #1 Source for Oahu Real Estate Information

INTERESTING INFO ON WHO IS BUYING AND HOW THE HOUSING MARKET HEALS FROM THE BOTTOM UP

Wed, 18 Nov 2009 08:07:28 -0600

Not suprising information on the current state of the market. In Hawaii, we are definitely seeing more action in the first time homebuyer segment, but expect to see it trickling up.

Via Florida Pines Realty, LLC:

The market always heals from the bottom up" according to Paul Bishop, National Association of Realtors Vice President of Research. According to the recently released sales numbers 47% of buyers this past year were first time home buyers. Surpassing the previous high record of first time purchasers set back in 1991

"These buyers are critical to housing and a general economic recovery ...they absorb inventory, free existing owners to make a trade and stimulate related goods and services " said Bishop. He compared this rise to the last recession in 1991, where the same dynamic played out "first time home buyers started the chain reaction that led the nation out of recession" he said. Bishop credits tax incentives,record high affordability, and pent up buyer demand to this spike in recent sales.   Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.

BUYER PROFILES ARE ALSO DIFFERENT THAN ONE WOULD EXPECT

The median age of a first time home buyer is 30 indicating that some are younger and some are older. They are planning to live in their homes for at least ten years. The typical cost Nationwide was $156,000 down 7% from last years figure of $165,000. 87% of First time Home Buyers surveyed consider their home to be a good investment." Single Family homes sold a higher rate than other forms of housing. In fact 78% of the home achieved were single family homes

HOW ARE BUYERS PAYING FOR HOMES? 96% Chose a fixed rate mortgage. (55% used FHA compared to 8% Using VA Programs) 61% of First time buyers used their savings as a down payment. 22% received down payment assistance as a gift from family.      6% received loans for down payments from family 6% tapped into a 401 (k) program

WHAT IS OLD IS NEW AGAIN- SAVING MONEY FOR A DOWN PAYMENT ON A HOME

39% of home buyers have cut back on luxury items, 38% cut back on entertainment and 30% cut back spending on clothing according to the study.

And a staggering 80% of first time home buyers are using the Internet.

HOW HAVE RECENT CHANGES IN REAL ESTATE AFFECTED SALES?

13% Experienced a Purchase Agreement that was canceled, terminated or fell through "This raises the question of how many potential buyers were unsuccessful because of problems with appraisals or loan qualifications. The market would be stronger without these problems" Bishop added.

Only 8% of applicants were rejected for loans (a 92% success rate) 12% of applicants said that financing their first home was more difficult than they expected. 8% of all buyers paid cash.

85% of Successful Home Sellers used a Real Estate Professional. Sellers surveyed want agents to price their homes competitively, find a buyer, market the property and sell within a specific time frame.

THE TAX CREDIT EXPANSION INTO 2010

The expansion of the tax incentive program will extend to homes placed under purchase agreements by April 30, 2010 and will include home buyers who have owned a home in the past 5 years.

Repeat Buyers surveyed had an average age of 48, earning $88,100 and plan to stay in the homes they purchased on average for 12 years. These buyers typically bought more expensive housing. The median price on a National level was $224,500

RECORD DECLINE IN FOR SALE BY OWNER PROPERTIES.

In the actual number of homes sold without representation was a record low according the most recent survey only 6%. Declining for the second year in row.

The most difficult tasks reported by owners attempting to sell homes themselves were,; preparing and fixing the home, understanding and performing the paperwork and selling within the planned length of time.

The overwhelming majority of successful sellers used a Real Estate Professional full service brokerage.

St. Cloud Florida Real Estate Broker/Associate,

St. Cloud Florida Homes For Sale, Buying HOMES In St. Cloud Florida, Real Estate Agent specializing in Osceola County Homes ,Townhomes, vacation properties, land, & Investment Properties-Allison Knows Osceola County, Fl.

Yvonne Jaramillo Ahearn Esq.
REALTOR-Broker, ABR, e-PRO
808-721-8088
HomeShoppeHawaii.com
Casey & Associates
Real Estate Professionals
"Real Dreams. Real Solutions."
Full-service REALTOR-Broker, Serving All Areas of Oahu, including Honolulu, Hawaii Kai, Waimanalo, Kailua, Kaneohe, Central Oahu, North Shore & the Windward Coast

Neighborhoods: Honolulu, Hawaii Kai, Kailua, Waimanalo, Kaneohe, North Shore, Lanikai, Beachside, Hillcrest, Norfolk, Kaimalino, Kawailoa, Enchanted Lake, Kailua Bluffs, Keolu Hills, Bluestone, Kukilakila, Kalama Tract, Kuulei Tract, Kailua Estates, Koolaupoku, Maunawili, Kaneohe, Haiku Plantation, Ahuimanu, Kahaluu, Lilipuna, Lulani Ocean, Matson Point, Portlock, Nawiliwili, Mariner's Cove, Anchorage, Mariner's Ridge, Northshore, Diamond Head, Black Point, Kahala, Portlock, Koko Kai, Paiko Lagoon, Waialae Golf Course, Nawiliwili, Hawaii Loa Ridge, Waikiki, Downtown Honolulu, Kapahulu, Kaimuki, Wilhelmina Heights, Manoa, Tantalus, Makiki Heights, Alewa Heights.

8 Myths of Staging to Sell - Busted.

Mon, 09 Nov 2009 13:06:40 -0600

Great commentary on the value of PROPERLY staging a home for sale.

Via Donna Ross - Home Staging, Sydney, Australia (Great Impressions Real Estate Staging & Consulting - Sydney):

Home staging (or property styling as it's commonly known as on the Australian property scene) is really an art, not a science. One of the many things a professional home stager understands is that it's the house that's up for sale, not the home owner's bread baking ability or taste in music. So, from the sublime to the rediculous - here's 8 myths of staging to sell - busted!

1. Buyers can see past my stuff
No - they can't. 95% of house hunters shop with a 'what you see is what you get' eye. You'll be maximising your chances of a better and quicker sale if you take the time to clean out, clean up and keep your look simple.

2. Baking bread, brewing fresh coffee and playing soft music will make a buyer fall in love with my house.
Maybe once upon a time this was true - but most would-be buyers are onto that old trick. It's more likely to trigger alarm bells, with many wondering what it is you're trying to hide. Your buyers will be happy with a place that looks and smells clean.

3. I'll need to clear everything out to help buyers see themselves living here.
This is only partly true. Wall to wall family photos are distracting, as is your porcelain rooster collection. These things are best put away. But don't go overboard, otherwise you'll end up with a look that feels cold and sterile.

4. If it's an original feature - it adds value.
Sometimes yes - but often no. Generally a property built less than 50 years ago without being updated is more likely to appear dated, rather than classic.

5. My place isn't worth staging.
All homes are worth taking the time to present in a positive light to buyers. The trick to knowing where to start and what to do is in having a good idea of what buyers in your target market will expect, along with learning more about what competing properties in your area are offering.

6. Empty rooms look bigger.

This is rarely the case. Buyers will always prefer to see how a room is used and what will fit in it, rather than be left to guess. Very large rooms can also be too intimidating for some. Even borrowed furniture can help buyers get an idea of scale and give the eye something of interest to focus on.

7. Converting a bedroom into a home gym won't be a problem.
Bedrooms are one of the most valuable commodities of the 'for sale' property. Having a home gym set up in a bedroom will prompt buyers to wonder why that is. I remember once looking at a house where this was the case. When I came across the bedroom with the gym in it, I immediately began to question if a bed would even fit. Always give the rooms in your house a purpose.

8. No need to worry about wardrobes and cupboards.
Home storage is a big deal to most buyers and is surprisingly valuable. Prospective buyers will open storage cupboards in kitchens and bathrooms, so keep them tidy. Keep only what you're using on a daily or weekly basis, and pack the rest away ready for the move.

Have you got a staging myth you'd like busted? Share them with me here.

Donna Ross

Great Impressions Real Estate Staging

"I love helping Sydney home owners and real estate agents catch the eye of choosy buyers with their 'for sale' listings, with fast, simple and inexpensive decorating fixes."

Oahu Real Estate Market Is on Fire - FTHB Credit May Be Credited

Mon, 26 Oct 2009 17:35:54 -0500

Wow!! That first time homebuyer's (FTHB) credit has really started things on a roll with the Oahu real estate market. Full price, close to full price or multiple offers on just about all Oahu homes for sale under $650K. The market in the $650K to $800K price range doing well too! And the last few weeks, Oahu homes for sale going into escrow in record time. Only things in really bad condition or very overpriced are staying on the market. Most first time home buyers have gotten in, but still a few stragglers... Might now be too late to close by Nov. 30.

Now, the next round of buyers are those who have sold to FTHB and who are trading up or downsizing. And many need to find something fast. Hoping that this will gain a little momentum and activity will stay steady over the holidays. Typically, there is not as much inventory, but with a few more tradeup buyers in the market as a result of the FTHB activity, we may still be seeing some more price pressure and multiple offers this holiday season. Stay posted for the latest statistics posted at www.HomeShoppeHawaii.com.

Waiting to see what next year has in store for homebuyers... another credit???

Luxury Loft-Like Custom Home in Kailua - Kailua Home for Sale

Wed, 21 Oct 2009 11:38:13 -0500

There is a new luxury listing in Kailua that I just love! Not only for its great features, but because the price is right at $1,198,000. I came across it by almost accident, in the course of researching concrete countertops, of all things. The home is owned by General Contractor and artist, John Foley, also the founder of Concreations, a company that specializes in decorative concrete for the home - acid stained floors and custom concrete countertops.

This luxury home in Kailua is quite special, not only for its liberal use of custom concrete in almost every room of the house, but for its gorgeous ocean views. Perched high on a hilltop in the Keolu Hills area of Kailua, this home has expansive views of Kailua Bay from every lanai, and there are several of those across two levels. The downstairs of the home has 10 foot ceilings and the living room lanai doors open completely, giving the home an "inside is out" feeling of spaciousness. The downstairs living area is large and inviting with sea green acid stained floors and plenty of windows. There is a large bedroom and bath on this ground floor level, as well. The kitchen features stainless steel appliances and concrete counters inlaid with sea shells and turquoise.

Upstairs, you will find 9 foot ceilings, bamboo floors and another living area large enough for a living room suite and a pool table. The master suite features views, a large lanai, and large soaking tub with separate shower, and a walk-in closet. There are two additional smaller bedrooms, for a total of 4. There are also 4 total bathrooms, which are all quite large and which features gorgeous custom concrete countertops created by the owner.

For an additional suprise, the home has a guest suite complete with wetbar/kitchen facilities. This "recreation area," which could be compared to a small 1 bedroom apartment, even has its own separate entrance and a separate lanai with those same killer ocean views. And did I mention the home is situated perfectly to take advantage of the tradewinds, keeping things cool. The home has custom doors and cabinetry and a suspended wire railed staircase reminiscent of a San Francisco loft home, as well as bright, modern, yet still decidedly tropical, choices in paint colors.

If you are an unrepresented buyer interested in this fine home and would like to see it, please don't hestitate to call me at 808-721-8088. Listing courtesy of CB Pacific Properties.

Main Living Area and Front Lanai, Doorway Completely Opens for Spectacular Kailua Bay Views - Acid Stained Concrete Floors, Custom Concrete Kitchen Counters in this Kailua Luxury Home Listing on Oahu

Kailua Bay Views from Every Lanai! Luxury Home Listings Kailua - Kailua Home for Sale - Keolu Hills, Kailua

Upper Floor Living Area, Bamboo Floors 9ft Ceilings - Large Lanai and Kailua Bay Views - Luxury Homes in Kailua

Large Downstairs Bedroom in Luxury Kailua Listing for Sale. Acid-Stained Concrete Floors, High Celings, WOW!

Luxury Homes For Sale Application for iPhone - LuxLister Launching November 1

Wed, 21 Oct 2009 10:26:09 -0500

Looking for a luxury home for sale in Honolulu? or luxury home listings on Oahu? Or beachfront homes on Maui? Or luxury homes for sale anywhere else, for that matter... Have an iPhone? Well then, November 1 is your lucky day because that is the day the new iPhone application, LuxLister is set to be released.

LuxLister has been described by its makers as "a revolutionary way to search for luxurious properties directly from your iPhone. This unique application was designed to provide home buyers in the luxury market a way to look for property without being inundated with unwanted information or contact. The goal of the LuxLister application is to engage luxury real estate consumers by providing a platform which enables them to gain easy and seamless access to luxury listings internationally."

Luxlister is a FREE download which may be obtained through the Apple iTunes Store after November 1, which is the scheduled release date. Users can browse luxury homes for sale in their desired area and directly contact the listing agent for that property with the touch of a button. Seamless delivery of information and ease of contact all in one place! To use LuxLister just download the application to your iPhone and in seconds, start browing luxury homes for sale. Homeowners, as well as luxury real estate agents may list directly with LuxLister.

What types of properties are on LuxLister? As a general rule, the property must meet certain price guidelines and standards, typically having a sale price of 3 times the average sales price in the area. There may be exceptions to this, however. LuxLister promises to make the search for luxury homes on Oahu or in any other area of the world easier and quicker. For more information go to www.luxlister.com.

Aloha & Good Luck Finding your Luxury Home or Beachfront Home in Honolulu!

Beachfront Homes Oahu - 2009 Update: Lanikai Neighborhood in Kailua

Tue, 06 Oct 2009 11:47:02 -0500

LANIKAI, KAILUA NEIGHBORHOOD
LUXURY & BEACHFRONT HOMES FOR SALE IN KAILUA, OAHU

10/06/2009 [2009 SALES DATA] [PAST SALES DATA]
ABOUT LANIKAI, KAILUA, OAHU

Lanikai means "heavenly seas" and is one of the most desired and expensive areas of Kailua. Lanikai is where you will find many of the luxury homes for sale in Kailua and has the best beacfront luxury homes on Oahu. Lanikai is the home or vacation spot to many local and national celebrities, such as the beloved late Don Ho. Elvis once had a home here too. Now, faces from the TV series "Lost," filmed on Oahu are often seen living and playing in Lanikai.

If you are looking for Lanikai real estate, you will find multi-million dollar mansions and modern architechtural masterpieces mingled with plantation style homes and shabby beach cottages. As one of the first and oldest areas of Kailua, there are more very old (incl. 20's & 30's) homes left in this area of Kailua than any other, some beautifully restored. The beach, with it's soft white sand is world renowned and many homes are either beachfront or have a views of the ocean and nearby Mokulua islands, a wildlife preserve, to which people take out kayaks.

Lanikai is located just past the South end of Kailua Beach Park, up and over the Lanikai Hill (Alala Street). Homes start on a relatively flat loop road and branch out up the hills from there.

The Mid-Pacific Country Club and Golf Course is located in Lanikai, Kailua, but there are no other local businesses. Commuting out of Kailua to town (Honolulu) is a bit slower from this area, as there is only one road in and out but many people don't find that to be an issue. Bellows Air Force Station recreation Area is located directly South of Lanikai and the Bluestone condominiums and Keolu Hills neighborhoods are on the backside of Lanikai's hills.

Prices for homes for sale in the Lanikai Neighborhood of Kailua can start in low 7 figures, usually around $1.0 for fixers or tear downs not on the beach and range to possibly, $9-10 million, (and more for larger sized parcels and luxury homes and estates that could be further subdivided to still large lots). Lots vary in size as well, usually, from around 10,000 square feet to over an acre, though there are a few smaller lots resulting from property CPRs. Zoning in this area is typically R-10, meaning one single-family residence per 10,000 sq ft. There are both homes and a few vacant lots available.

Public schools in Lanikai are Kailua Elementary and Lanikai Elementary (charter schools), Kailua Middle School, and Kailua HS, depending upon location. Private schools, such as St. Anthony School, is within a few miles and goes PS-8th. Grocery and restaurants are all within a mile or two from Lanikai. locations.

PAST SALES DATA FOR LANIKAI NEIGHBORHOOD IN KAILUA

From 2004-2008, the number of sales in the Lanikai are of Kailua followed the mainland market, peaking in 2004-2005, dipping dramatically in 2007-2009. Average prices increased most significantly between 2004 and 2005. It used to be you couldn't find a home for sale in Lanikai for under $2M. Times have changed. 3 of the 4 homes sold in Lanikai in 2009 were in the under $2M price range.

In summary, the luxury home sales statistics for the Laikai Neighborhood of Kailua over the past several years are set forth in the chart:

Year	# Sales	Median Sale Price	Average Price	Average DOM	Avg Sale to List
2004	29	$1,450,000	$1,953,486	73	97
2005	20	$1,517,500	$2,306,500	50	95
2006	14	$1,650,000	$2,125,928	73	95
2007	14	$2,307,000	$2,684,357	116	97
2008	9	$1,650,000	$2,889,333	61	99

2009 SALES DATA FOR LANIKAI NEIGHBORHOOD IN KAILUA - KAILUA LUXURY BEACHFRONT HOMES

This year, with only one quarter left in 2009, the number of sales in the Lanikai Neighborhood of Kailua is down very significantly. As of the end of September 2009 there have only been 4 sales, with 3 of those sales in the under $2 million price range and the average sale price at $2,028,750.

Unlike last year, in which we saw the sale of one property, 1554 Alapapa Drive for under $1 Million, the lowest sale in 2009 was $1.1 Million for 751 Alapapa. In 2009, only one Lanikai sale was beachfront: a 1935 home at 1206/1208 Mokuloa, which sold for $3,500,000.

LANIKAI HOMES SOLD IN 2009, THROUGH Q3
LUXURY HOMES IN KAILUA OAHU

2009 STATS THROUGH Q3

Average Sale Price: $2,028,750
Average Days on the Market: 103

Right now (end Q3 2009), there are 25 homes for sale in Lanikai. Just over half have lot sizes of around 8-12,000 sq feet. 11 have lots larger than 12,000 sq ft, and 5 of these 11 are on lots over an acre in size. 10 Homes for Sale in Lanikai are beachfront. The asking price for the least expensive beachfront Lanikai home for sale is $4,950,000 and the highest priced beachfront home for sale in Lanikai is $13,000,000. If you are searching for Lanikai beachfront Homes by address the even-numbered side of Mokulua Drive has all the beachfront homes in Lanikai. Luxury homes and estates in Lanikai can be found on this street and throughout the area. I would expect to see some downward price pressure on Lanikai homes for sales, as a result of this years sales (or lack thereof).

If you want more specifics on what is currently on the market, please contact me directly at 808-721-8088. I didn't want to post all of the sales data here, because prices and availability may change frequently.

HOMES SOLD THROUGH Q3 2009 - LANIKAI KAILUA
Address	Lnd SqFt	Liv SqFt	Beds	Baths	Yr Blt	Price	DOM
751 Alapapa Drive	9,096	2,080	3	2/0	1996	$ 1,100,000	71
236 Poopoo Pl	10,007	2,829	3	4/0	1991	$ 1,615,000	86
212 Poopoo Pl	11,277	3,528	4	3/1	1989	$ 1,900,000	13
1206/1208 Mokulua Dr	14,890	2,707	6	4/0	1935	$ 3,500,000	292

Looking to buy or sell a luxury home in Kailua, a beachfront home in Lanikai, Kailua, or a relaxed beach cottage or retreat in the Lanikai Area of Kailua, Oahu, Hawaii? Or would you like help with luxury homes on Oahu in other areas of Oahu? I can help - I have specialized training in working with buyers of upscale homes and have 20 years experience in counseling and advising senior business executives and business owners, as well as handling multi-million dollar business transactions. I make it a point to stay up to date on market statistics and trend and track the relevant data. My membership in the Insitute for Luxury Home Marketing includes global networking and special resources for the luxury home market. Proud to be a full-service REALTOR-Broker and licensed transactional attorney, I help my clients get the best price in the shortest time, with the most information and the least hassle.

Luxury Homes on Oahu & Beachfront Homes on Oahu Sold in 2009

Thu, 01 Oct 2009 16:48:11 -0500

2009 Oahu, Hawaii Luxury Home Sales Statistics - Through Q3
[Luxury Real Estate Oahu, Hawaii 2008]
While relatively unscathed over the past few years, the luxury home market on Oahu has finally seen the effect of the economy. The luxury real esate market on Oahu has suffered in 2009, where we have seen a fairly significant drop in the number of sales. In the $3-4 Million price bracket, the number of luxury home sales is 10 for the first 3 quarters of 2009, down from 14 for all of 2008. In the $4-6 Million Dollar Oahu luxury home market, we have seen a more marked decline in the number of luxury home sales on Oahu. 2008 had a total of 15 sales and, so far, in 2009, there have been only 7. In the upper tier luxury home market on Oahu, at over $6 Million in Price, only 4 homes hae been sold in the first 3 quarters of 2009. In 2008, 17 luxury homes and estates on Oahu were sold in this price bracket. This reflects not only a decrease in number of homes sold, but also some downward price pressure on the luxury home market on Oahu. Great time to come in and buy a piece of the most beautiful and livable place on earth!

$3M-$3,999,999
Tax Map Key	Address	Neighborhood	Lnd SqFt	Liv SqFt	Beds	Baths	Yr Blt	Price	DOM
1-3-1-038-034-0000	3619 Diamond Head Rd	DIAMOND HEAD Honolulu - Diamond Head	7,618	3,735	4	4/1	1963	$3,288,500	202
1-3-1-039-051-0000	3763 Diamond Head Rd	DIAMOND HEAD Honolulu - Diamond Head	7,417	4,232	3	4/2	1979	$3,850,000	34
1-3-2-061-002-0000	4346 Puu Panini Ave	PUUPANINI Honolulu - Diamond Head	16,385	4,480	5	4/1	2008	$3,900,000	95
1-3-5-012-035-0000	4449 Kolohala St	KAHALA AREA Honolulu - Diamond Head	11,060	4,200	4	4/1	2007	$3,000,000	70
1-3-5-012-041-0000	4484 Aukai Ave	KAHALA AREA Honolulu - Diamond Head	10,800	5,659	5	7/0	2008	$3,400,000	155
1-3-5-002-011-0000	4057 Black Point Rd	BLACK POINT Honolulu - Diamond Head	13,473	5,244	6	6/1	2005	$3,625,000	39
1-3-7-016-019-0000	12 Puuikena Pl	HAWAII LOA RIDGE Honolulu - Diamond Head	23,669	5,149	5	5/2	1989	$3,750,000	238
1-4-3-018-046-0000	21 Pilipu Pl	BEACHSIDE Kailua	13,899	3,008	5	3/2	1960	$3,000,000	86
1-4-3-005-053-0000	1206/08 Mokulua Dr	LANIKAI Kailua	14,890	2,707	6	4/0	1935	$3,500,000	97
1-4-9-001-023-0000	49-011 Kamehameha Hwy	HAKIPUU Kaneohe -Windward	80,586	8,123	7	8/0	1984	$3,850,000	348
TOTAL # SALES: (THROUGH Q3)	10							AVG DOM:	136
$4M - $5,999,999
Tax Map Key	Address	Neighborhood	Lnd SqFt	Liv SqFt	Beds	Baths	Yr Blt	Price	DOM
1-3-1-044-010-0000	4111 Papu Cir	DIAMOND HEAD Honolulu - Diamond Head	8,114	4,986	3	3/1	1958	$4,200,000	31
1-3-1-027-003-0000	3207 Noela St	DIAMOND HEAD Honolulu - Diamond Head	34,304	7,519	6	5/2	1938	$5,375,000	126
1-3-5-001-004-0000	4162 Black Point Rd	BLACK POINT Honolulu - Diamond Head	21,040	4,328	4	4/1	1926	$5,200,000	297
1-3-6-003-010-0000	5343 Kalanianaole Hwy	AINA HAINA Honolulu - Diamond Head	34,581	6,930	5	6/1	1990	$5,500,00	235
1-3-7-001-039-0000	5611 Kalanianaole Hwy	NIU BEACH Honolulu - Diamond Head	15,567	5,208	4	4/1	1997	$4,725,000	153
1-4-3-083-014-0000	141 Kailuana Lp	BEACHSIDE Kailua	27,293	5,201	5	4/1	1969	5,000,000	314
1-6-1-009-006-0000	61-581 Pohaku Loa Wy	KAWAILOA North Shore	37,587	2,670	3	3/0	1950	5,245,000	52
TOTAL # SALES: (THROUGH Q3)	7							AVG DOM:	173
$6M and Over
Tax Map Key	Address	Neighborhood	Lnd SqFt	Liv SqFt	Beds	Baths	Yr Blt	Price	DOM
1-3-1-027-001-0000	3239 Noela St	DIAMOND HEAD Honolulu - Diamond Head	47,754	10,544	5	6/3	1989	$8.750,000	103
1-3-9-027-006-0000	142 Hanapepe Lp	KOKO KAI Honolulu - Hawaii Kai	17,695	4,800	4	4/2	2008	$8,250,000	14
1-4-3-022-013-0001	57 Kailuana Pl A-1	BEACHSIDE Kailua	24,202	4,606	4	4/2	2006	$6,830,000	313
1-4-3-018-063-0000	41 Mahiloa Pl	BEACHSIDE Kailua	32,324	4,721	6	6/0	2007	$7,100,000	292
TOTAL # SALES: (THROUGH Q3)	4							AVG DOM:	181

Public Schools on Oahu - Teacher Furloughs! UGHH

Tue, 29 Sep 2009 02:31:40 -0500

In fairness and with respect to the public school teachers on Oahu, let me start by saying how much I appreciate their hard work and my sincere belief that teachers on Oahu are sorely undervalued and underpaid. I sound like a broken record, though, and am constantly shocked at budget cut after budget cut when it comes to education.

So now, in Hawaii, we have been told that the government must cut the budget by $468 million in over the next 2 years. To avoid laying off teachers, the DOE and Hawaii State Teachers Association have agreed, as of September 23, 2009, that teachers will take a 7.94% pay cut and in return, teachers will get 17 furlough days.

What does this mean for Hawaii students? As a practical matter, public school on Oahu now seems to be almost part time. As a result of the furloughs, most Fridays will be missed, leaving a 4 day school week. As it was, one of these days was a "short" day to account for teacher meetings. I am sure this will wreak havoc on many parents' child care schedules and budgets, as well as those of the teachers. Also, it is my understanding that field trips and any special activities will now be cancelled to make up for the extra instruction time.

The only thing else I can say is about this is it is just really, really sad for the students, and places a terrible burden on both teachers and parents. Come on Governor Lingle, can't you figure out another place to make cuts?

Kailua Neighborhood Series - 2009 Update: Beachside Neighborhood in Kailua

Mon, 28 Sep 2009 22:17:58 -0500

BEACHSIDE, KAILUA NEIGHBORHOOD
LUXURY & BEACHFRONT HOME FOR SALE IN KAILUA, OAHU

9/28/2009 [2009 SALES DATA] [PAST SALES DATA]

ABOUT BEACHSIDE, KAILUA, OAHU
The Beachside Neighborhood in Kailua is one of Kailua's and Oahu's most prolific luxury home and beachfront home neighborhoods. All of the homes in the Beachside area of Kailua are located beachfront or within a short walking distance to the beach. Many homes, even some of those with a busy street address like Kalaheo Avenue, are down quiet streets and off private lanes. There are several mini-neighborhoods and HOA's, in these charming beachside lanes, with amenities not usually seen in Kailua, like underground utilitites, and most having a private beach access path for residents. There are also several public beach access points in the Beachside Neighborhood in Kailua.

Prices in the Beachside Neighborhood of Kailua can start in low 7 figures, usually around $1.0 for fixers or tear downs on Kalaheo Ave. and range to possibly, $9-10 million, (and double that for larger sized parcels and luxury homes and estates that could be further subdivided to still large lots). These super-deluxe Kailua luxury homes can be sprawling Balinese or plantation-style compounds, while the lesser expensive homes may be shabby beach cottages and anything in-between. Lots vary in size as well, usually, from around 10,000 square feet to over an acre, though there are a few smaller lots resulting from property CPRs. Zoning in this area is typically R-10, meaning one single-family residence per 10,000 sq ft. There are both homes and a few vacant lots available. Older homes, unless of historical significance tend to get torn down and replaced in this area.

The Beachside Neighborhood of Kailua, where some of the best luxury homes on Oahu, is located in the perfect location, along the 3 miles of white sandy beaches of Kailua Bay (on the makai side) bounded by and including the even-numbered side of North Kalaheo Drive (but not including all of N. Kalaheo). To the Northwest, it is bounded by the Kaiwanui Canal to the ocean, and to the Southeast by Kailua Road and the Kawailoa neighborhood (Kailua Beach Park). The Beachside Neighborhood includes the prestigious Castle Point area, with incredible luxury homes and estates, an area once owned by Harold HK Castle. Also, the coveted subdivision of Kainalu Park, with some luxury estates and some more modest homes, and small associated areas and associations such as Dune Circle, L'Orange, etc. Public schools are Kailua & Kainalu Elementary, Kailua Middle School, and Kailua and Kalaheo HS, depending upon location. Private school, St. Anthony, is within walking distance for most areas and goes PS-8th. Grocery and restaurants all within a mile from most locations.

PAST SALES DATA FOR BEACHSIDE NEIGHBORHOOD IN KAILUA

From 2004-2008, the number of sales in the Beachside are of Kailua remained somewhat stable, dipping the most in 2006. Average prices increased most significantly between 2004 and 2005, with a notable increase again between 2005 and 2006. However, it is important to note that average sale prices in 2006 and 2008 were both skewed upward* by very large (over $20 Million) sales of large properties. Median prices saw increases also through 2006. The median sale price, however, has been dipping by about 10% a year over the past few years.

In summary, the statistics for the Beachside Neighborhood of Kailua over the past several years are as follows:

Year	# Sales	Median Sale Price	Average Price	Average DOM	Avg Sale to List
2004	21	1,325,000	1,869,023	67	95
2005	19	1,900,000	2,668,143	82	96
2006	16	2,195,000	3,770,062*	85	95
2007	21	2,000,000	2,938,714	82	93
2008	18	1,800,000	3,996,055*	68	93

2009 SALES DATA FOR BEACHSIDE NEIGHBORHOOD IN KAILUA - KAILUA LUXURY BEACHFRONT HOMES

This year, with only one quarter left in 2009, the number of sales in the Beachside Neighborhood of Kailua is already down significantly. As of the end of September 2009 there have only been 10 sales, with the median price at $2,195,000 and the average price at $3,180,500.

The lowest sale so far in Beachside, for 2009, at a jaw droppingly low price of $780,000 was for a tear down home on an 11,000 sq ft lot, right on North Kalaheo Ave. This went under contract at the end of 2008, and closed in Q1 2009, when the Kailua real estate market was looking its most dismal. I don't think anyone expects to see more deals like this.

BEACHSIDE HOMES SOLD IN 2009, THROUGH Q3
LUXURY HOMES IN KAILUA OAHU

2009 STATS THROUGH Q3

Median Price: $2,275,000
Average Sale Price: $3,180,500
Average Days on the Market: 181

Right now (end Q3 2009), there are 23 homes on the market. Over half of these are on estate sized lots (i.e. around 1/3 acre or more). The former Castle Estate, now listed for $15M, is on 1.5 acres at Castle Point, with three homes, but in the process of being divided into three single-family lots. Another 2/3 acre lot with a compound of two new residences on South Kalaheo, near Kailua Beach Park, is listed for $21,000,000. The home at Castle Point, used by President Obama for his vacation last year, is also for sale.

Many of the homes currently for sale are newly renovated/developed properties, resulting from speculation in the boom years of 2004-2006 and the division of some larger lots. Some of these are now lender/investor owned, due to the market downturn and inability to build/sell. As you can see, average days on the market has gone up tremendously, more than doubling. May be time to see some major price reductions for some of these.

HOMES SOLD THROUGH Q3 2009 - BEACHSIDE KAILUA
Address	Lnd SqFt	Liv SqFt	Beds	Baths	Yr Blt	Price	DOM
224 N Kalaheo Ave	11,020	1,420	2	1/1	1951	$ 780,000	71
24 N Kalaheo Ave	10,925	3,127	3	4/0	2008	$ 1,250,000	86
61 Kai One Pl	10,000	3,100	4	4/0	1965	$ 1,495,000	283
33 Kalaka Pl	10,002	3,317	5	5/0	1950	$ 1,800,000	13
169 Kailuana Lp	10,080	3,124	4	4/0	1968	$ 1,900,000	265
27 Kai Nani Pl	13,906	3,679	4	3/1	1956	$ 2,650,000	83
21 Pilipu Pl	13,899	3,008	5	3/2	1960	$ 3,000,000	86
141 Kailuana Lp	27,293	5,201	5	4/1	1969	$ 5,000,000	314
57 Kailuana Pl A-1	24,202	4,606	4	4/2	2006	$ 6,830,000	313
41 Mahiloa Pl	32,324	4,721	6	6/0	2007	$ 7,100,000	292

Looking to buy or sell a luxury or beachfront home, or a relaxed beach cottage or retreat in the Beachside Area of Kailua, Oahu, Hawaii? Or would you like help with luxury homes on Oahu in other areas of Oahu? I can help - I have specialized training in working with buyers of upscale homes and have 20 years experience in counseling and advising senior business executives and business owners, as well as handling multi-million dollar business transactions. I make it a point to stay up to date on market statistics and trend and track the relevant data. My membership in the Insitute for Luxury Home Marketing includes global networking and special resources for the luxury home market. Proud to be a full-service REALTOR-Broker and licensed transactional attorney, I help my clients get the best price in the shortest time, with the most information and the least hassle.

Luxury Home on Oahu, Used by President Obama, For Sale in Kailua - $8,900,000

Fri, 25 Sep 2009 20:00:31 -0500

Yesterday, at Broker's Open House in Kailua, Oahu, I had the opportunity to view an exquisite beachfront home at Castle Point. Interestingly, it also happened to be part of the group of homes that was used by President Obama and his family for their December 2008 vacation in Kailua.

Kailua is a laid-back beach town, about 14 miles from downtown Honolulu. This Kailua Beachside Neighborhood property, formerly part of the Harold KL Castle Estate, sits on almost an acre of land in a prestigious gated community known as Castle Point. Castle Point is at the end of Kailuana Place through the also exquisite Kainalu Park Area in Kailua. The back of this Kailua estate for sale fronts the tranquil aquamarine waters of Kailua Bay and one of the best white sand beaches in the US, if not the world. Recreational activities enjoyed on Kailua Beach area include windsurfing, kitesurfing, stand-up paddling, kayaking, swimming, and of course, suntanning. You may even frequently spot a honu or two! The front of this Beachside Neighborhood home for sale is on a quiet, wide, dead-end street, that fronts the Kaiwanui Canal, leading to the ocean.

The wood-frame Tropical Plantation style luxury home, built in 2006, is almost 5,000 sq feet under roof, with almost 2,000 square feet of open lanai, and has 5 bedrooms and 5 1/2 baths. The entry to the home is gated and features a spacious and private front courtyard area with tropical landscape, a pool, waterfall and whirlpool. The open floor plan of this Kailua home features many rooms opening directly into the spectacular courtyard, maximizing the flow of the cool tradewinds from the ocean.

The architectural detail and finish work, including stained glass, stonework, and intricately carved wood, at this Beachside Neighborhood home are impressive, yet not pretentious. This fine home is still suitable to the relaxed beach lifestyle of Kailua. This home is listed at $8.9 Million. Qualified buyers, please call me for an appointment or for more information on this property. 808-721-8088.

Back of Beachfront, Beachside Neighborhood Kailua home, looking from Kailua Beach.

This Castle Point home features a large Chefs kitchen with top of the line stainless appliances.

An Expansive Living/ Dining Room Area opens to Interior Courtyard Area in this fine Kailua Luxury Home.

Master Bath w/ Shower, Soaking Tub, Double Vanities, and a Multi-Million Dollar View.

Media Room and View Down Hallway With Bedrooms, Laundry, Etc. in This Comfortable Kailua Luxury Home.

Front Courtyard and Beautifully Landscaped, Private Pool Area.

Gorgeous Lanai Area in Front Courtyard

Large Lava Rock Pool Area with Waterfall in Front Courtyard.

Back Yard with Frontage Directly on Kailua Beach & Bay - Miles of White Sandy Beaches!

Listing courtesy of Joel Cavasso, C21 Kailua Beach Realty. Photographs used with permission.

Buying A Home In Hawaii - The Process

Wed, 23 Sep 2009 16:09:05 -0500

You've decided to buy a home in Hawaii and maybe this is your first home purchase, or at least first time buying a home on Oahu, so you are unfamiliar with the process. What can you expect? What steps will occur? If you work with me, the buying a home in Hawaii process will go something like this:

1. Contact Me: If you are thinking about buying a home in Hawaii, first contact me. We can talk by phone or email and then, follow up emails by phone and/or in person. Before we talk - (A) Think about the basics of what you are looking for - how many bedrooms, square footage, etc. to narrow down your space and aesthetic requirements (B) consider your lifestyle, favorite activities, your tolerance for commute, and other considerations, such a schools, to narrow down your location requirements, (C) have a general idea of what you are qualified for and willing to spend on a home. Just a basic idea is neccessary at this point, to give me an idea of what is important to you in a home and the areas of the island and properties that might work for you. If you are like most buyers, A, B, and C may all change slightly during the actual "looking at homes" process.

2. Receive Listings Via Email: Based on your general requirements, I can set up one or more "Homes for Sale on Oahu" searches via the Hawaii Association of Realtors MLS (Mulitple Listing Service). Unlike in some other states, such as New York, there is one centralized MLS on Oahu and all REALTORS on the island have access to the same properties via the MLS. When you are buying a home in Hawaii, you can receive your property listings via email or on a special website portal set of specially for you. If you do not have email, I can make other arrangements. At the website, you may "Reject" properties, or mark them as "Favorites" or "Possibilities." You may also leave other comments.

3. Contact a Mortgage Lender/Broker: If you are not paying cash, you will need to find out what you actually are qualified to borrow. You also need to determine the cash funds you will have available for purchase. This would generally include an earnest money deposit, downpayment and Closing Costs in Hawaii. All of these factors will affect the maximum purchase price for your home. You will need to submit a loan application and obtain a prequalification letter from a lender of your choice. I can provide some names of Mortgage Brokers to work with if you need this.

3. Meet/Interview With Me: We will have an initial interview (hopefully in person, but perhaps, via phone, if you are on the mainland) to discuss mutual expectations and determine whether we will pursue a Broker-Client agency relationship for buying a home on Oahu.

Once a mutual decision is made to pursue the relationship, I request that my clients sign a Buyer's Agreement, which is a contract between the Buyer and myself, setting forth mutual expectations, the services I will provide, and compensation for my services. 99% of the time, my compensation for Buyer's Agent services is paid by the Broker of the Seller of property that is purchased by my Buyer. In rare circumstances, the Buyer will pay directly for my services (usually by wrapping it into the mortgage) -- such as with the sale of a For Sale By Owner property, where the Owner is not offering a Buyer's Agent commission. Typically, however, FSBO's do offer a Buyer's Agent commission and this is paid by the Seller-Owner of the property sold, and is part of the purchase price for the property.

Contrary to common myth, whether or not you are represented by a Buyer's Agent will rarely, if ever, affect the price you will pay for a home for sale in Hawaii. You do not "save money" or "get a better deal" by going into a home purchase without your own professional representation. In fact, you may lose money by making pricing or inspection mistakes. The Seller-Owner of a home has a written listing agreement that requires them to directly pay 100% of the total agreed upon commission (usually 5-6%) to the Seller's Broker, whether or not a Buyer is represented by a Broker. If the Buyer has no Broker, the Seller's Broker does not share the commission with anyone, but rather keeps the full agreed-upon commission and may go into a Dual Agency relationship, getting paid for both the Seller and the Buyer side of the transaction. So, bottom line is that the Buyer typically does not get a rebate or a better price because full commission is still paid by the Seller.

4. Viewing Properties: Before I take you out viewing homes on for sale on Oahu, you should have spoken with a lender and done the preliminary groundwork, to determine the amount you are willing to spend on your new home. There are two important reasons for this: (A) You can be sure that we are seeing the homes in the right price range, not to be disappointed to find out that the home you LOVE is out of your range and (B) you will be prepared to quickly obtain a pre-qualification letter, if you find a property you want to purchase, and lessen the chance of losing it to another buyer in the interim.

Prior to taking you to view homes on Oahu, I will prepare for the showings by sorting through your comments made via the MLS listing website. I will also personally identify other properties that you may like via the MLS. I very often will take a day or two and preview these, in person, if I have not already seen the property with another client or broker's open house, in advance to showing them to you. I will call all of the listing brokers and set up appointments to see them. This will often require 24-48 hours advance notice, since many properties are owner-occupied, requiring preparation, and not all are on lockbox. I will schedule the appointments, allowing time to see each home and for the drive between the various locations. We will go out for as long as our schedules and energy will permit. Typically, I will show Buyers between 4-6 homes in a session, but if scheduling or time on island is an issue, I can always show you more or less.

When we meet, I will provide a schedule for the day and MLS Customer Reports for each home we see. I also usually will provide a CMA (Comparative Market Analysis) Report for all the homes we see which compares the listings by price per square foot. I will also provide other requested information. I will often drive you around the area and show you other points of interest, such and schools, recreation areas and shopping districts, that might be relevant to your home search.

If you wish, you can also see homes on your own, during Sunday Open Houses or Weekly Brokers' Open Houses. Brokers' Opens are on Wednesdays and Thursdays, depending upon area of the island. If my schedule permits and I am not sitting an Open House, I can attend these with you. I will provide you with cards that you may present to the listing broker at these Open Houses, so that you will not have to sign in with your personal information, and the listing brokers may contact me directly for feedback. It is important that we communicate frequently during this process, so that I may better identify the right homes for you.

5. Selecting Properties: When you have identified one or more properties that you are very interested in, I will provide more detailed information on the properties. This may include information or relevant comparable home sales on Oahu, Oahu property tax information, mortgage lien information, Oahu school information, disclosure information, etc. We may also go back for one or more additional showings, including possibly having a few contractors or other experts view the property.

6. Writing an Offer/Purchase Contract: Once you have selected the property you wish to buy on Oahu, you will make an offer. An offer is written up by your REALTOR and signed by you as the Buyer. In Hawaii, most offers are written using a standard Hawaii Association of Realtors (HAR) Purchase Contract (it used to be called the DROA, so you may still hear that term). The Purchase Contract will usually include various Addenda, which may include standard broker addenda, lead paint disclosures (on older properties), short sale addenda, etc. Most of the forms used are HAR Forms. Sometimes, you will see custom forms, such as with a sale in a new condo building or subdivision. Regardless of whether you are using a standard or custom form, all terms and conditions of a Purchase Contract are negotiable between Buyer and Seller. However, your offer typically will be viewed as stronger by a Seller, if it is fairly standard and not full of special or unusual terms and conditions.

In writing up an offer, you will need to consider not only the Purchase Price you will offer, but also other important terms such as Earnest Money, Down Payments, Closing Dates, Closing Costs (who pays what), Inspection Periods, Financing, any Contingencies, and any special terms required. I will cover each of these items and discuss preferred timing with you, with the goal of having every phase of the Purchase Contract during the escrow period, fall precisely into place.

In Hawaii, the main Contingencies and other items affecting the standard Purchase Contract are (1) Acceptance of Real Property Disclosures (2) Home Inspection (commonly referred to as C-51), (3) the Financing Contingency, (4) Title Report (5) Survey and (6) Termite Inspection. I can explain these is further detail, if you have questions.

7. Acceptance/Counter Offer: Upon receipt of your offer to purchase a home on Oahu (via Purchase Contract), the Seller will either accept the offer within the specified time frame, or reject the offer by either (a) submitting a Counter-Offer or (b) doing nothing, both also within the specified time frame. If there is a Counter-Offer, you may accept this or go back and forth with another Counter-Offer, until someone either accepts or ends the process by not responding. Reaching a signed agreement sometimes requires multiple Counter-Offers back and forth.

8. Escrow: Once an agreement is reached, the Earnest Money will be deposited, escrow will be opened on the property and timelines will start running as of the Acceptance Date, as indicated in the Purchase Contract. The Buyer will then select the Home Inspector and Termite Inspector (usually), as indicated in the Purchase Contract and begin the process of due dilligence on the property. The Buyer will also work on the Loan Contingency, if there is one, including obtaining any required property insurance policies. In the meantime, the Seller will be working to fulfill his obligations by providing disclosures, Home Owner Association documentation (if any), Survey and other contract requirements. I will attend and facilitate all inspections, unless otherwise requested, answer any questions, and provide all necessary transaction documentation to the Escrow Agent and the Lender, as required. Buyer will submit all additional down payment monies, under the timelines set forth in the Purchase Contract.

9. Closing: When all requirements are met and contingencies satisfied (or waived), closing documents will be signed by the parties. This is typically not done with Buyer and Seller together in one room. Sometimes it is done remotely, using email and express mail. Often, it occurs at the Escrow company with the Buyer and Seller signing separately. I will attend this to provide moral support, if needed, and help answer any questions, unless otherwise requested. Even if I am not in attendance, I will review the Estimated Closing Cost Statement and work with the Escrow Agent and Lender to help to answer any questions you may have regarding the closing documents.

10. Recordation: Typically, upon recordation, you may take possession and move into your new home. The transaction will not be recorded, usually, until a few to several days after signing of closing documents, and always after funding of the loan.

11. Congratulations!

Buyers Agent's Survival Kit - 10 Things To Keep in Your Car At All Times

Wed, 23 Sep 2009 12:49:56 -0500

Of course it makes sense to be well-prepared to take your buyers out. You search for properties, make appointments, print out the MLS reports, gather other relevant information about schools, etc., and then, prepare the schedule for the day. But there are other things besides the listing information that can help make your day out with clients easier, more effective and more comfortable for them. Keeping a bag or box in the car with these items, including carring some of these with you into listings can often be helpful.

1. Extra Slippers - House slippers that is, not flip flops. And I prefer the washable type with a "gripping" rubber soul to help avoid slips. In Hawaii, we take our shoes off before entering most homes for sale. Some clients, especially from the mainland, would prefer to keep some type of shoe on. Having a pair of house slippers handy is great for those times and they won't harm or dirty the home's floors.

2. Old Towel - If your clients opt to not use slippers, a towel helps to wipe off dirty feet from walking outside on wet or dirty ground after taking off shoes at the front.

3. Tape Measure - Obvious and handy to have for many reasons - to see if furniture will fit, width or doors and hallways, how high the ceilings are, will the car fit in the garage, etc. etc.

4. Compass - I use the compass on my iPhone, but you can pick up an inexpensive one at most variety stores. Particularly in sunny, warm locales like Hawaii, Clients often ask about the direction the windows and doors face. Compasses are handy for checking the sun and tradewind exposure, and speculating about how hot certain parts of the home get at various times of day. The way doors and rooms face is also important to those who apply Feng Sui principles and for some religious groups.

5. Camera - Clients often bring their own, but it is handy to have a camera available to document certain features or issues with a home.

6. Flashlight - Handy when showing a home where the electricity is not turned on. This is happening more and more often as we see pre-forclosures and foreclosures on the market.

7. Snacks/Water - If I know it is going to be a long day, I will bring granola bars, nuts, or other snacks that can be eaten in the car. Cold bottled water in a small cooler is always a must.

8. Toilet Paper - Not a bad idea to keep a roll of toilet paper with you. How many times have your clients REALLY needed to use the restroom at a vacant home and there is no toilet paper available? It has happened to me at least a few times.

9. Hand Sanitizer - Most of the time you can find a sink, soap and water, but you never know when you might need this.

10. Umbrellas - In Hawaii, it rains frequently in many areas. When you pick up clients in Waikiki, it may be sunny and they will not carry an umbrella. By the time you drive to Kaneohe, it could be pouring rain. Nice to have a few of these in the car.

Impress your clients and make them more comfortable by being really well-prepared! Aloha ~ Yvonne

Oahu Still in Pretty Good Shape: August 2009 Foreclosure Stats

Tue, 22 Sep 2009 20:13:15 -0500

Since I last wrote regarding foreclosure statistics on Oahu, things have changed a bit and the rate of foreclosures on Oahu has increased. Overall, though, this island is still in pretty good shape.

In August, the Honolulu Star-Bulletin reported that the rate of filing in the entire state of Hawaii had increased by 332% from July 2008 to July 2009, with the island of Maui leading the islands with 1 in every 362 homes going into foreclosure. The island of Oahu fared quite a bit better, with a rate of 1 in every 618 homes going into foreclosure.

In September, the Honolulu Star-Bulletin cited August numbers, including reporting that, as a state, Hawaii was ranked #20 of all 50 states in foreclosure activity, with the island of Kauai, leading the islands in rate of foreclosure.

While the island of Oahu has seen an increase in foreclosures, clearly, the neighbor islands are pulling the state of Hawaii's ranking as to foreclosure activity down. As would be expected, the neighbor islands also have higher rates of unemployment and have seen more of a general decline in their real estate market.

So the good news here is, according to Realty Trac foreclosure activity statistics, as of August 2009, the Honolulu Metropolitan area (island of Oahu), still ranks a somewhat healthy #150 out of the top 203 National Metropolitan areas, with only 1 in every 1,109 households in foreclosure. On Oahu, a few primary areas have most of the foreclosure activity. These are the Ewa Beach, Kapolei, and Mililani areas (see Realty Trac chart below). Waianae, Kaneohe & Waipahu, on Oahu, also had higher than average activity. The other areas listed in the Top 10 Hawaii Zip Code Chart, below, are on the island of Kauai (Lihue), Maui (Wailuku, Kihei & Lahaina), and the Big Island of Hawaii (Kailua-Kona, Hilo, Waikoloa).

FORECLOSURES IN HAWAII
Top 10 Hawaii ZIP codes
for August 2009
Foreclosure Activity:

ZIP code	City	Total	% change from 2008
96766	Lihue	175	+40.0
96740	Kailua-Kona	78	+3,800.0
96706	Ewa Beach	65	+306.3
96753	Kihei	64	+220.0
96793	Wailuku	36	+227.3
96707	Kapolei	33	+3,200.0
96761	Lahaina	29	+163.6
96720	Hilo	27	+107.7
96738	Waikoloa	27	+2,600.0
96789	Mililani	27	+170.0

Source: RealtyTrac

Ewa Plain/ Pearl City/ Mililani, Hottest Condo Markets under $500K on Oahu - Under $500K Fee Simple, Sale to List Price Statistics

Tue, 15 Sep 2009 18:24:34 -0500

Wow, the condo market is picking up. As with single family homes, we are seeing more and more condos selling for at or above the asking price. This is to a lesser extent in some areas of Honolulu and Leeward, and more so in very desirable areas like Mililani. Expect to see more with the last minute rush to purchase and get in for the First Time Homebuyer's Tax Credit for 2009. Inventory is decreasing too. Take a look at the stats:

In the last 6 mo, this is how the Fee Simple Condo sales went for units listed at $500,000 and under in price in the following areas:

SEPTEMBER 2009 - OAHU CONDOS UNDER $500K LIST PRICE

AREAS	# SOLD last 6 mo	Avg # Sold/Mo	# Sold At or Above List Price	% At or Above Asking	Ratio Sale to List Price	Avg Days on Mkt	# Units Active 9/14	Months Inventory Left	# Units Under Contract On 9/14
Metro Honolulu
TMK 1-1-1 (Salt Lake)	72	12.0	13	18%	96%	65	34	2.8	25
TMK 1-1-2 through 1-1-9	43	7.2	8	19%	94%	94	23	3.2	9
(Dillingham, Kalihi, Lower Nuuanu, Chinatown)
TMK 1-2-3	106	17.7	17	16%	94%	91	131	7.4	29
(Kakako, Ala Moana, etc)
TMK 1-2-4, 1-2-7, 1-2-8	176	29.3	29	16%	96%	69	123	4.2	73
(Makiki, Kapiolani, Moilili, Punahou, & More)
TMK 1-2-6 Waikiki	215	35.8	42	20%	94%	84	493	13.8	64
Diamond Head	24	4.0	6	25%	97%	69	27	6.8	8
Hawaii Kai	49	8.2	7	14%	97%	76	13	1.6	18
Kailua	30	5.0	3	10%	96%	103	14	2.8	11
Kaneohe	62	10.3	14	23%	97%	70	50	4.8	24
Central Oahu Region	136	22.7	39	29%	98%	65	107	4.7	64
(Incl. Mililani/Wahiawa)
Pearl City Region	127	21.2	43	34%	97%	64	63	3.0	41
Ewa Plain Region	91	15.2	40	44%	98%	83	89	5.9	72
Leeward Region	36	6.0	7	19%	94%	102	95	15.8	9

It's amazing how many of these properties are going for at or above the asking price, 25%-44% in many areas. And then look at the inventory compared to how many are currently in escrow. My recent experience has been that despite the "buyers' market," the really good units go fast, so I am encouraging my buyers to put their best offer forward the first time. Otherwise, the result is disappointment in losing out over and over. While there are still "good deals," these are not usually on the cleanest, most remodeled and desirable properties. Aloha, and happy househunting!

Just Listed: Lovely Mililani Townhome (2/2/2) in Gorgeous Launani Valley, $343K FS

Wed, 09 Sep 2009 18:30:30 -0500

UPDATE: Under Contract, effective 10/3/2009.

Location, location, location! This beautiful Mililani Townhome is just what you or your buyer is looking for. In the lush, wooded Launani Valley, this condominium home is close to Wheeler Air Force Station, Schofield Barracks, Mililani Technical Park and Oceanic Time-Warner offices. This immaculately kept 2 bedroom, 2 full bath, 1056 sq ft. home is located on the parking level (no stairs up or down) of the Terraces at Launani Valley. In Building P, this is in the quiet, back side of the complex, with frontage on preservation land. This home has a 126 sq ft lanai and two parking spaces, one covered. Additional amenities of these lovely condominiums include a pool, whirlpool, community club house, recreation area with BBQ grills. There is also a playground for the kids. Nearby is the picturesque recreation areas of the Launani Valley Park, with another playground, tennis courts and hiking/walking trails. Good, EZ access to H-2, as well, for easy commute to downtown Honolulu.

Built in 1995, this townhome features high-ceilings, wall to wall carpet and a large kitchen (with eat-in area), as well as a large living/dining area, with a ceramic tiled, covered lanai large enough for a table and chairs. Walk through double doors off the living area to your master retreat, complete with access to the lanai, a separate dressing area with closet, and a large full master bath with double vanity, and extra storage. The second bedroom overlooks a garden area and there is another full bath. Ceiling fans and designer paint add to the charm of this lovely Mililani home.

$343,000 Fee Simple. Perfect home for First Time Homebuyers Looking to Utilize their Tax Credit by purchasing (closing escrow) before December 1, 2009. First Open House, Sunday September 13, 2009, 2pm-5pm. For showings, please call Yvonne Jaramillo Ahearn at 808-721-8088. www.HomeShoppeHawaii.com.

Front of Building P, Front Doors Entry Area - Terraces at Launani Valley, Mililani Townhomes.

Spacious Living Area, Open Floor Plan w/ Dining Area - Double Doors Lead to Large Master Suite.

Lovely Mauka Views from the Large Tiled Lanai.

Newer Kitchen, with all the Amenities, including an Eat-in Breakfast Nook.

Bedroom of Large Master Suite with Separate Dressing Area and Large Full Master Bath.

Large Master Bath, with Tub/Shower Combination, Double Vanity & Extra Storage.

Good sized 2d Bedroom for Office, Guest Room or Child's Bedroom.

Large Guest Bathroom with Tub/Shower Combo.

Playground for Kids and BBQ Grill, Nearby, at the End of this Unit's Row of Buildings.

Pool and Recreation Area, See Whirlpool to the Right of Pool. Club House, Recreation Room to Back.

Information About Flood Zones & Flood Insurance In Hawaii

Wed, 02 Sep 2009 15:09:22 -0500

FLOOD ZONES & NATURAL DISASTER INFORMATION IN HAWAII

When purchasing a home in Hawaii, it is important to know what Hawaii flood zone the home is in and the implications of the flood zone designation. What are the risks of flooding and how can you mitigate those risks? Is mandatory flood insurance required and where can you get mandatory flood insurance in Hawaii?

Flood Zones in Hawaii

Under the FEMA Definitions for Flood Zone Designations:

High Risk Flood Zones for are designated by V, VE, and V1-V30 (Coastal) and A, AE, AH, AR, A1-A30, & A99. These are generally considered to be Special Flood Hazard Areas (SFHAs).
Moderate to Low Risk Zones are designated by B, C and X
Undetermined Risk Zones are designated by D.

See the Flood Map Legend to the right for additional detail.

Flood Zone Maps for Oahu

Oahu FEMA Flood Maps

FEMA FLOOD MAP SEARCH PAGE

General Oahu Flood Zone Map

Oahu Stream Flooding Map

Oahu High Wave Damage Map

FEMA is currently revising the Flood Zone Maps in Hawaii, so we can expect some things to change over the next year.

Flood Insurance in Hawaii

Flood Insurance may be advisable for certain Flood Map Zones and federally regulated lenders REQUIRE Flood Insurance to purchase any home in areas designated as a Special Flood Hazard Area (SFHA).

A home is considered to be in a SFHA when there is a least a one percent chance of a flood equal to or exceeding the base flood elevation (a 100-year flood) in any given year. Thus, during the life of a 30-year mortgage loan, the risk of flooding for a home in an SFHA is at least 26 percent. To find out about whether Mandatory Flood Insurance is required, please check with your lender. You can also review the NFIP Mandatory Purchase of Flood Insurance Guidelines for more detailed information about to whom the Mandatory Flood Insurance Guidelines apply (Page 23).

Flood Insurance is NOT part of your regular standard Homeowner's Insurance Policy.

To find out about the costs and availability of Flood Insurance, please check with your Hawaii Insurance Agent. Contact me and I can recommend a good agent.

For More information on the National Flood Insurance Program (NFIP), please go to the following sites:

FEMA Flood Insurance Information

FloodSmart.gov - The Official Website for the NFIP

Other Natural Disaster Information

Hawaii State Civil Defense Website - Has information about Tsunamis , Floods & Other Natural Disasters in Hawaii, Evacuation & Disaster Preparedness, etc.

Mother Nature Hawaii - Hawaii Hazard Mitigation Forum Website
- Oahu Strong Wind Map

- Oahu Hazard Mitigation - Identify risk and protect your Oahu home from natural disasters

People Trying to Get in While They Can on Oahu - Home Buying on Oahu

Sat, 29 Aug 2009 14:34:34 -0500

Here are some recent statistics on Single Family Home Sales that may give some insight into what is going on in the East Oahu real estate market. Over the past 6 mo, we have seen many more properties getting into bidding wars and/or selling over the list price at the time of sale, especially in Kailua. Many first time homebuyers have finally decided that they want to get in the market and some, who may qualify, are eager to take advantage of the $8K First Time Homebuyer Tax Credit for 2009. Others see this as a very good time to trade up, with interest rates still so low. I expect the market will get a little more crazy in the next few months as the end of year approaches, particularly, in the lower price points and condo market.

Kailua
Price Point
- Under 700K, 47 sold, with 17 (36%) AT or ABOVE asking price, Avg sold/list ratio was 97%, avg 76 DOM
- 700K to $1M, 57 sold, with 14 (25%) AT or ABOVE asking price, Avg sold/list ratio was 97%, avg 64 DOM
- $1M to $2M, 14 sold, with 2 (14%) AT asking price, Avg sold to list ratio was 93%, avg 116 DOM
- over $2M, 2 sold, with 0 at or over asking, Avg sold to list ration was 95%, 72 DOM

Hawaii Kai
Price Point
- Under 700K, 30 sold, with 6 (20%) AT or ABOVE asking price, Avg sold/list ratio was 95%, avg. 90 DOM
- 700K to $1M, 43 sold, with 11 (26%) AT or ABOVE asking price, Avg sold/list ratio was 97%, avg. 79 DOM
- $1M to $2M, 11 sold, with 0 at or above asking price, Avg sold/list ratio was 93%, avg. 139 DOM
- over $2M, 4 sold, with 0 over asking, Avg sold to list ratio was 88%, avg. 113 DOM

Diamondhead
Price Point
- Under 700K, 43 sold, with 9 (21%) AT or ABOVE asking price, Avg sold/list ratio was 95%, avg. 72 DOM
- 700K to $1M, 52 sold, with 8 (15%)AT or ABOVE asking price, Avg sold/list ratio was 96%, avg. 71 DOM
- $1M to $2M, 48 sold, with 6 (13%) AT or ABOVE asking price, Avg sold/list ratio was 92%, avg. 79 DOM
- over $2M, 14 sold, with 0 at or over asking, Avg sold/list ratio was 87%, avg. 84 DOM

Please note: The days on market statistics do not take into account that some properties may be re-lists. Also, the Sold to List price ratios are based on list price at time of sale, not the original list price data.

Hawaii Property Tax Rates for 2009-2010 - Higher, but Hawaii Property Taxes Still Quite Low Compared to Other States

Mon, 24 Aug 2009 15:49:56 -0500

Not that it was unexpected, but property taxes went up in Honolulu County, Hawaii (i.e., island of Oahu) for the 2009-2010 year. (For other counties, see link below).

The Honolulu County 2008-2009 rate for residential improved property was previously $3.27 per $1000 and went up to $3.42 per $1000 for the period of July 1, 2009 through June 30, 2010. Nevertheless, unless something drastic has happened everywhere else in the country, Hawaii property taxes in all counties are still among the lowest in the country. See, for comparison, Tax Foundation Data for State Property Taxes by County for 2005-2007.

Real property taxes in Honolulu County (Oahu) are determined by taking the total tax assessed value of the property and deducting any exemptions, then multiplying by the tax rate above. The total tax assessed value (Assd Val Total) is the sum of the value of the assessed value for land (Assd Val Land) and the assessed value for the improvements to the property, e.g, home, garage, pool, patios, fences, etc. (Assd Val Imprv).

To determine the approximate taxes for a property they were purchasing, a prospective homebuyer would look at the MLS Full Report, provided by their REALTOR for a particular property and see, for example, the following:

Assd Val Land: $969,000	Tax Year: 2008	Elem School:
Assd Val Imprv: $247,900	Mon Taxes: $305	Middle School:
Assd Val Total: $1,216,90	Home Exemp: 80000

Here, you see the tax value of both the land and the improvements, and the total which is used to calculate the property tax. In the MLS Property Reports, the applicable exemption is in the section Home Exemp. The section, Mon Taxes is an approximate statementof the monthly taxes paid for the Tax Year specified.

The standard exemption for an owner-occupied home is $80,000, which you see in the example above. If the owner is over age 65 the exemption goes up to $120,000

There are other exemptions for low-income older property owners, agricultural properties, and for historic properties, etc. The complete details regarding Home Exemptions for Honolulu County can be found here.

One important thing for homebuyers/homewoners to note --- You do not AUTOMATICALLY receive the homeowners exemption. You must file the appropriate form with the City and County of Honolulu to get the exemption or your exemption will be zero. Your REALTOR should provide you with information about this and/or a form when you purchase your home so that you can receive the exemption. If you miss the deadline of September 30, you cannot get the exemption retrocatively.

Now, you can file or update your Home Exemption Online (in addition to bringing it to a Satellite City Hall or mailing it in).

Property Taxes for State of Hawaii - Includes Honolulu County (Oahu), Maui County, Kauai County, and Hawaii County (Big Island of Hawaii).

Home Buyers Can Find a "Walkable" Place to Live: Try Walkscore.Com

Fri, 29 May 2009 08:49:41 -0500

How cool! I stumbled across a website that rates the walkability of a particular address: www.Walkscore.com

It uses an algorythm to assign points based on how close various types of amenities (e.g., grocery stores, restaurants, schools, parks, etc.) are to the address. If the amenity is less than .25 miles from the address, it scores the maximum points, and the address gets less points if the desired location is further. No points are given for amenities further than one mile away.

Many homebuyers and renters are interested in finding and living in walkable neighborhoods, as boost to their own health and the health of the environment. According to Walkscore.com, studies have shown that people living in pedestrian-friendly neighborhood weigh less than those who don't. The cost and environmental savings of walking over using a car are readily apparent, but there are also social benefits of a pedestrian friendly hood --- when you are always in a car, you miss a lot of the day to day interaction with your neighbors that you may have if walking the same distance. Walking also can help strengthen local businesses who thrive on foot traffic.

The website rated the Top 10 US Neighborhoods for walking. Not too many suprises here:

San Francisco, CA
New York, NY
Boston, MA
Chicago, IL
Philadelphia, PA
Seattle, WA
Washington D.C.
Long Beach, CA
Los Angeles, CA
Portland, OR

How does Hawaii stack up? Well, I tried a few addresses in Neighborhoods that I know to be fairly walkable, to see how it worked:

Waikiki scored 86/100 "Very Walkable" using the address 2465 Kuhio Street, Honolulu, HI
Kaimuki scored 91/100 "Walker's Paradise" using the address 1043 6th Ave, Honolulu, HI
Kahala scored 48/52 "Car-Dependent" using the address 4742 Kahala Ave, Honolulu, HI
Kahala scored 75/100 "Very Walkable" using the address 1030 Pueo St, Honolulu, HI
Portlock/Hawaii Kai scored 66/100 "Somewhat Walkable" using the address 379 Portlock Rd, Honolulu, HI
Kuulei Tract/Kailua scored 66/100 "Somewhat Walkable" using the address 157 Kuumele St, Kailua, HI
Kuulei Tract/Kailua scored 83/100 "Very Walkable" using the address 96 S. Kainalu Dr, Kailua, HI
Keolu Hills/Kailua scored 58/100 "Somehat Walkable" using the address 1032 Kina St, Kailua, HI
Coconut Grove/Kailua scored 66/100 "Somewhat Walkable" using the address 422 Kihapai St, Kailua, HI

In Hawaii, I think it really depends more upon the exact address than the neighborhood, because using various addresses in the same neighborhood will yield different results. At any rate, it is a good resource for people moving to a new location or visiting somewhere they have not been before.

Happy Walking!

Hawaii Realtors Now Exempted From Distressed Property Law

Sat, 23 May 2009 21:07:16 -0500

Great news for Hawaii REALTORS that handle distressed properties and for homeowners in the unfortunate situation of being behind in their payments and facing the risk of foreclosure! As of Wednesday May 20, Realtors are exempted from many of the provisions of the Mortgage Rescue Fraud Prevention Act of 2008. This is an enormous benefit to distressed homeowners who can now rely on the help of their real estate agent working with their lender to help them sell their home prior to foreclosure.

The Mortgage Rescue Fraud Prevention Act is a law enacted to help protect homeowners that are behind on their mortgage payments from unscrupulous people that attempt to take advantage of the homeowner's predicament by purchasing the home for less than it is worth or otherwise stealing the equity in the home.

The law defines a Distressed Property as one in which the homeowner is at least 60 days deliquent on his/her payments, or at least 90 days delinquent in the payment of taxes, association fees or other encumbrances, or meeting other similar criteria. It provides that a person doing certain tasks for the homeowner must enter into a Distressed Property Agreement with the homeowner and that that person would be considered a Distressed Property Consultant. The tasks covered include things such as helping to postpone foreclosure, negotiating with the homeowner's lender or other creditors, helping protect the homeowner's credit, and other tasks that help the homeowner and which, sometimes, may be handled by a realtor knowledgable in these areas.

The original Hawaii law was modeled after several other similar state laws. However, one of the main differences was that realtors were exempted from the law in other states. So, since Governor Lingle has now signed Act 66 of 2009 into law, Hawaii has now realized that including realtors within the definition of Distressed Property Consultants was not helping homeowners, but rather, hurting them, and has corrected these problems. While realtors still may not purchase a Distressed Property that they represented, during or within 365 days after their listing agreement has expired/is terminated, they may still do what it takes to really help the homeowner try to avoid foreclosure via negotiations with creditors and/or selling the property.

If you are behind or may become behind on your payments and are looking at selling, even if you owe more on your home than it is currently worth (a short sale), please do not hestiate to contact me. I will do what I can to help.

Aloha~ Yvonne 808-721-8088

Gorgeous Golf Course Frontage Home in Kailua - AMAZING DEAL - Short Sale $850K

Wed, 20 May 2009 21:49:16 -0500

NEW KAILUA LISTING: 463 IANA STREET - Open Sun 2-5pm

yvonne@homeshoppehawaii.com 808-721-8088 for showings.

WOW! Is what you will say when you see the views from this expansive 2200 sq ft home situated right on the Mid-Pac Golf Course in Kailua. On a 10,000 square foot lot, this breezy 3 Bedroom, 2 Bath retreat also has an office, den, laundry room, and enlarged Master Suite with dressing room. And the chef in your family will love that the kitchen has a gas stove! Catch a sneak preview of this great home at my OPEN HOUSE 2-5 this Sunday, May 28th!

Please note: This is a short sale and we have just done a 100K price reduction, to sell it quick! The bank has already approved the price of 850K with another offer, so buyers will not have long to wait for approval, at this price. This home's tax assessed value is over $1.2M. Act fast before it's gone.

This home is on Iana Street in the much desired Iana Corridor section of Enchanted Lake. If you are not familiar with this street, it is a long cul-de-sac, very quiet and private. Most homes are either waterfront backing to the Kaelepulu Stream or with Golf Course frontage, like this one, backing to the Mid-Pac Golf Course in Lanikai. This area is closer to the ocean and the large open section of the Kaelepulu Stream. Here, the ocean is a straight shot less than a mile over the golf course, so this area takes advantage of the amazing, cooling island tradewinds.

Watch the President play golf from your backyard!

Professionally landscaped yard, with sprinkler system and landscape lighting.

Back view of the home. Relax under this shady tree in this huge yard, sized for a pool and more!

Another view of the beautifully landscaped yard that opens wide up to the Mid-Pac Golf Course allowing for amazing, expansive views!

The Den/Music Lounge opens up to this brick patio area on the large side yard. The perfect place for grilling or margaritas! The other side yard has space large enough for a boat!

Beautiful Mid-Pac Golf Course views from your family room.

More views of the golf course from the Den/Music room. This home also has a separate dining area and an office.

Spacious kitchen with bay window for plants and wood flooring. Lots of other storage too that is not seen in this photo. Off the kitchen is a separate laundry/utility room and an office.

Spacious formal living room, opens to kitchen, dining and family room.

As a bonus, both the living room and family room have lots of built-in cabinetry and shelving.

The master suite in this home includes a large partially remodeled master bath, a large dressing room with double closets and a large master bedroom.

For showings please call Yvonne at 808-721-8088 - Aloha!

Yvonne Jaramillo Ahearn (RA)
Casey & Associates
yvonne@HomeShoppeHawaii.com
www.HomeShoppeHawaii.com
808-721-8088

Contact me for Hawaii Real Estate | Oahu Real Estate | Luxury Homes | Military Relocation
Honolulu, Kailua, Mililani, Lanikai, Hillcrest, Norfolk, Kaimalino, Beachside, Kawailoa, Enchanted Lake, Kaopa, Kailua Bluffs, Keolu Hills, Bluestone, Kukilakila, Kalama Tract, Kuulei Tract, Kailua Estates, Koolaupoku, Maunawili, Kaneohe, Haiku Plantation, Lilipuna, Lulani Ocean, Matson Point, Mililani, Waimanalo, Hawaii Kai, Portlock, Nawiliwili, Northshore, Diamond Head, Black Point, Kahala, Portlock, Hawaii Loa Ridge, Waikiki, Downtown Honolulu, Kapahulu, Kaimuki, Wilhelmina Heights, Manoa, Tantalus, Kaimuki, Pearl City, Salt Lake.

Short Sale Advice from an "Underwater" Community in the Desert

Fri, 15 May 2009 02:52:38 -0500

Great advice from a Realtor in an area of the country that has been hit hard. We are seeing some short sales over here too and his advice is valuable. Thanks, James, for the post!

Via i Real Estate Services:

Over the course of the last week I've had the chance to read a large number of blogs and Realtor posts regarding short sales. I can't imagine there is another subject with a wider degree of opinion! There is so much information, both good and bad, it is easy to see how consumers and Realtors alike are easily confused.

I have been a licensed Broker since 1995, but for nearly 20 years I have been principally engaged in the lending side of the business. During that time I have helped hundreds of consumers negotiate short payoffs of private and institutional loans, obtain prepayment penalty waivers, perform rate modifications on existing loans and assist with lien payoff resolutions including IRS tax liens.

Short sales and loan modifications are nothing new.

What has changed is the sheer volume of consumers who are upside down on their homes and the complexity of the mortgages they hold. This has created a tremendous market for short sale "experts" and loan modification "specialists" who offer services to desperate homeowners. And it's created a log jam at loan servicing departments with overwhelmed loss mitigation units processing inordinate numbers of applications. Of course, compounding the problem is this crazy financial services environment where the major servicers (retail banks) are incapable of adequately staffing temporary loss mitigation departments due to their financial condition. Oh, and don't forget the hideous maze of ownership rights to modern mortgages; many of whom have been sliced and diced from mortgage pools into CDOs with no clear owner, and a servicer with no vested interest in the loan itself. Fun Stuff!

Yet in spite of this there are plenty of local Realtors and Loan Modification Companies touting themselves as short sale experts with the ability to make the process "easy," "simple" or "fast."

Uh huh.

Short sale situations are as varied as the stars in the sky. Every consumer's situation is different and there is no single cookie cutter/template that will work for everyone. With that in mind here is my best attempt to provide some general guidance to homeowners or Realtors seeking to sell a home for less than is owed on the mortgage(s).

Bit of Advice #1. Get to the right people the first time around.

Mortgage ownership and servicing rights change hands at an ever more rapid pace. It is important to know WHO owns your mortgage and WHAT department handles short payoff approvals.

If you aren't sure of who owns the mortgage, perform a free search through the MERS (Mortgage Electronic Registration System) website: https://www.mers-servicerid.org/sis/ MERS is a national registration system for mortgage loans and nearly all institutional loans are registered with them.

Once you have determined who the correct servicer/owner of your mortgage is, then you need to identify which department handles short sale approvals. Do not contact the general toll free number listed on a mortgage statement or website unless you want to spend lots of time listening to "sold on hold" messages while being bounced from person to person. I generally "Google" the specific company department I am looking for if I cannot find it in my own rolodex. There are a few free public lists of Loss Mitigation Departments that you might also try. Here is one I recently found: http://iamfacingforeclosure.com/blog/loss-mitigation-phone-numbers/

Once you contact the appropriate Loss Mitigation department make sure to get a detailed list of their requirements, including any company specific forms they require. Do not use a cookie cutter template provided by some 3^rd party.

Note: If you are dealing with multiple institutional mortgages on a single property then - in my opinion - you are trying to do the impossible. However, you can get short sale approvals done when the 1^st & 2^nd mortgages are owned by the same company. Many lenders now have "Co-Loss Mitigation" Units that workout settlements on multiple loans simultaneously. I recently completed a short sale in Southern California with Wells Fargo by working with a group specifically setup to negotiate on behalf of Wells Fargo Mortgage (1sts) and Wells Fargo Home Equity (2nds).

Bit of Advice #2: Hardship, smardship. You have a sad story, boo hoo hoo. Now what's in it for us?

If you scan the internet you will find hundreds of samples for short sale hardship letters. Too often they focus on the borrower's reasons for needing a short sale and not the bank's reasons for accepting the short payoff. It is ok to spell out hardship but FOCUS ON THE REASONS WHY THE BANK SHOULD ACCEPT YOUR PETITION. The bank only cares about getting the maximum amount of money, in the shortest amount of time. Anything you can point out to that effect should be at the heart of your letter and application.

And be as detailed and accurate as possible. You will need an estimated HUD-1 that is spot on. And if you are looking for a pre-approval, or if you can't get the numbers to be deadly accurate, then make sure to add a minor level of padding to allow yourself some wiggle room with negotiations. Remember that the Loss Mitigator is also looking for some sort of "win" and, as it is with your clients, it's much better to under-promise and over-deliver. Besides, if the deal ends up short to close guess where the extra money is likely going to come from??? It isn't going to be from the lender whose agreed to take tens (or hundreds) of thousands less on their loan!

The key here is that you want to give the Loss Mitigation Officer as many reasons as possible to approve the short sale. Which leads me to my next piece of advice...

Bit of Advice #3. Know who you are dealing with.

Imagine yourself working in a temporary/contract $40,000 year job, sitting in a cubicle farm surrounded by hundreds (if not thousands) of other collection professionals. Your daily work life resembles a Dilbert cartoon with stacks of files on your desk that stretch to the ceiling. Pinned to the punchboards on your cubicle walls are "Matrices" of loss mitigation guidelines which spell out what you must review and what you are permitted to approve. Your phone rings incessantly and you have 14 new voicemail messages, each from some histerical Realtor or homeowner wondering when their application will be approved. You can barely go to the bathroom without someone's permission let alone approve an exception from the "greater of 80% payoff or 100% of bank AVM" rule in your region. Those exceptions require the written approval of a Loss Mitigation Officer II-A and you have only been with the bank 6 months...

Do you really want to harass this guy? You think he really wants to take your call? Bother him too much and my guess is your short sale application will be placed in the "cylinder filing cabinet."

Instead, be nice. Don't call and harass anyone. Get an e-mail address. Nearly all of the banks have a generic e-mail string like john.doe@bankofamerica.com. Send him polite update requests every few days that he can respond to at his leisure. Keep him apprised of any market conditions regarding the subject property that might hasten his decision. Remind him of important milestones in the purchase contract. Offer to bake him cookies. Whatever it takes (within legal limits) to keep him engaged with you and your file.

Last Bit of Advice (For Realtors Only): Own the process.

I live and work in the West Valley of Phoenix and there is hardly a home seller here who is not upside down. I know a lot of Realtors who choose to avoid short sale listings altogether because of the time and energy they take. Others choose to use 3^rd party vendors and leave it up to someone else to do most of the work. While I would never advocate that Realtors spin their wheels and work for free, I do believe that we all have some degree of responsibility to the markets and communities we serve. And remember, the more short sales we close, the fewer foreclosures there will be, the greater the number of qualified buyers that will exist in the future, and the faster we will return to a period of home value appreciation.

There's my 2 cents. My sympathies to the millions of homeowners in this country who are upside down on their home through no fault of your own. I wish you the best of luck.

What is a Short Sale?

Tue, 12 May 2009 04:42:14 -0500

Wish I had ten dollars for each time I've been asked by my buyer clients and friends to explain options they might have in purchasing short sales or foreclosures, and to explain the notations they see on the MLS regarding various property types. Listing clients, as well, are starting to come to me with similar questions regarding various options to sell their home in the current market.

Hawaii has one of the lowest foreclosure rates in the nation, but recently, one of the highest rates of increase in foreclosures. As usual, we in Hawaii are behind the curve, and Buyers and Sellers in many places on the mainland have been going through what we in Hawaii are just now starting to go through. And our property values, while not having suffered like those on the mainland, are down, as well to about 2005 levels. So I will clarify here, for the Hawaiian readers who may not have seen as many of these, four different property types that are starting to come up more frequently, amidst the regular Hawaii homes for sale:

(1) short sales (2) distressed properties (3) foreclosures and (4) REO homes.

First, Short Sales. A short sale is the sale of a home where the sale price agreed upon between the Buyer and Seller (and any involved lenders) of a home is less than the total costs of the sale. For example, where a home is sold for $750K and $780K is owed between a first and second mortgage, plus other costs of sale like closing costs, other liens, realtor comissions, etc, AND the seller does not come up with the extra cash toward the price and costs, you have a short sale. A home subject to short sale may or may not be distressed or in foreclosure at the time of the sale. The owners of a short sale property may, in many cases, be current on all the payments. The only issue is price, because either the market price has decreased since they bought the home, or the owenr has taken out one or more mortgages or lines of credit on the property and the market value has decreased since that time. All short sales must be approved by the mortgage holders because typically they will be getting paid less than they are owed.

Buyers making offers on short sales should beware that it may take several weeks to months to get an answer from the bank as to whether their offer is acceptable. And the banks may not be very flexible as to terms. Many banks also will not negotiate back and forth, so if the bank rejects an offer, the buyers have to either try again or move on. Not all banks have similar procedures or requirements for short sales. In fact, they are all over the board on these. Short sales are becoming increasingly common in Hawaii and tend to affect those that bought or refinanced in 2005, 2006 or early 2007, when prices were higher, especially if they used a VA or other low downpayment loan.

Sellers of Short Sale properties will generally take a hit on their credit scores, as a result of the short sale, particularly when they have payments in arrears (I have read, approximately 80-100 pts or so). However, the effect is less extreme than a foreclosure, which apparently costs the homeowner 200-300 pts on his or her credit score. Short sales will remain on a seller's credit report for approximately 3 years and may hurt their ability to purchase another home for 18 months or more.

To help preserve a seller's credit, it is important to try to negotiate with the bank that any shortfall between the amount owed by the seller and the purchase price be forgiven (if the seller is unable to pay), and that the notation on the seller's credit as to the loan balance indicate "paid as agreed upon." It used to be that any shortfall forgiven to the seller of property by the lender would be considered taxable income to the seller (via 1099). The Mortgage Debt Relief Act of 2007 changed this and now many homewoners with debt forgiven through a short sale or a loan modification will not be taxed on these amounts. Certain conditions, such as having the property as your principal residence, do apply. If the MDRA does not apply to you, there may be other provisions under which your forgiven debt may not be considered taxable income - for example, if you are deemed "insolvent." Please check with your tax experts to see how this may affect you. Not all shortfalls will be forgiven by the bank, however, particulalry when the seller has considerable other assets or earning potential enabling them to repay the bank using a payment plan.

The Basics on the First Time Homebuyer Federal Tax Credit for 2009

Sat, 02 May 2009 14:08:06 -0500

In their efforts to stimulate the economy, the Feds are offering up to an $8,000 tax credit to first-time homebuyers who purchase a home in the 2009 calendar year, and closing ON OR BEFORE NOVEMBER 30, 2009. Here are some of the details:

To qualify as a first-time homebuyer, neither the buyer or the buyer's spouse may have owned a home that was used as a primary residence in the past 3 years. It does not need to be your truly first home, however. And you may have owned rental properties in the past three years, so long as none were used as you or your spouse's primary residence. The IRS provides an explanation and various scenarios that help provide guidance on whether one qualifies as a first-time homebuyer.
The credit may be used for any type of residential property in the U.S. -- single-family homes, condos, co-ops, etc, but the property must be owner-occupied and used as the primary residence, usually for at least 51% of the year. So, the credit may not be claimed for the purchase of unimproved land. Certain houseboats and manufactured homes may qualify, but duplexes, unless wholly owner-occupied probably would not qualify.
There is an income limitation of $75,000 a single person (and $150,000 for married) for use of the full credit amount. Above this income, the credit is smaller or phased-out entirely (at $95K/$170K).
If the home is sold within three years after purchase, the entire amount of the tax credit will be recaptured upon the sale.
There is also a cap on the amount of the credit of 10% of the value of the home purchased or $8,000, whichever is lower. So if the house is purchased for $70,000, the maximum tax credit claimed would be $7,000. (This would not be an issue in Hawaii!)

The terms of this tax benefit are similar to the up to $7,500 tax credit that was offered to purchasers of homes from April 2008 to the end of 2008. However, unlike the 2008 credit, it does not have to be repaid.

Also, it is a "refundable" credit. What this means is that if a purchaser's total tax liability is only $5000, the purchaser can still use the full credit and will received a refund of the difference between the credit and libaility. So, if entitled to an $8,000 credit, the purchaser in this scenario would get a $3,000 refund check in the mail.

AND, in certain circumstances, the tax credit may be applied immediately as a credit against closing costs.

Check with your tax accountant or other financial advisor, for further details and on how this tax credit specifically affects you and your situation. Happy Homebuying!

Hawaii Legislature Overturns Special Requirements for Remodeling of 50 Year Old Homes

Fri, 01 May 2009 18:01:57 -0500

Many Hawaii homeowners and realtors were dismayed last year when we heard about the new requirement for remodeling or tearing down properties 50 or more years old. Under this law, Act 228 of the 2008 Legislative Session, owners wishing to tear down or remodel such a structure, had to provide photographs of their property to the State Historic Preservation Division prior to being issued a building permit. There was no distinction made as to the condition or stuctural integrity of the building, or any other factor, other than age. On the East side of Oahu, this affected many, many people, as most homes here are at or rapidly approaching the age that would be covered under the law.

As you can imagine, many problems and criticisms arose from the law, including imposing an unfair burden on homeowners in getting and paying for these pictures and, of course, further delays in getting permits. This law was not meant to create a bottleneck, or even prevent destruction of historical properties, but rather just a way to preserve history through pictures. However, it made an already cumbersome permit process a bit more cumbersome.

Governor Lingle, has apparently agreed with the critics of Act 228, and effective April 14, 2009, repealed this law. She stated," Act 228 further impeded the issuance of building permits at a time when we should be doing all we can to facilitate construction activity in order to stimulate the economy and create jobs." Thank you, Governor Lingle, but I have to wonder -- why do some of these laws get passed in the first place?