REMAX Kauai - Koloa / Poipu Offices

Closed sales on Kauai

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Thu, 25 Sep 2008 22:01:17 -0700

The chart above shows a clear trend for the reduction in the number of closed sales on Kauai. As demand continues to decline and the supply increases, the resulting downward price adjustment must soon follow. It has become a battle of wills but the Sellers must soon concede to the inevitable. However, in order for cycles to continue their dynamic swings (up and down) the current downward trend is only a preamble for the recovery. Just dont ask me when !! REMAX KAUAI Property Search

Distressed Property Hawaii Law MUST be Amended to Exclude Realtors

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Thu, 25 Sep 2008 21:55:46 -0700

Distressed Property Hawaii Law MUST be Amended to Exclude Realtors. (edit/delete) The stated purpose of the new law is to protect the property owners facing foreclosures, liens, or encumbrances from persons who would prey on them. This act addresses possible misrepresentations by such persons who would offer assistance to these owners and requires them to fully describe their services in a written contract. It gives the property owner the right to cancel at any time before a "distressed property consultant" has performed all services called for in a contract. The problem arises in the definitions section: "Distressed property consultant means any person who performs or makes any solicitation, representation, or offer to perform any of the following relating to a distressed property: ... Stop or postpone the foreclosure sale or loss of any distressed property due to the nonpayment of any loan that is secured by the distressed property..." Previously, these were duties real estate professionals performed when they represent a seller in a short sale. Unfortunately real estate professionals are not specifically excluded in this law. However, lenders, attorneys and insurance companies are all exempt from the law. Why not real estate agents? Short sales are a challenge for agents under the best of circumstances. They take much more time and their commissions are usually reduced by the lenders as a condition of approving the short sale transaction. Agents work on short sales as a service to their clients. Under the new law, real estate professionals acting as "Distressed property consultants" have their compensation capped at two most recent monthly mortgage installments of principal and interest due on the loan first secured by the distressed property or the most recent annual real property tax... which ever is less". This is very little incentive for a real estate professional to list, market, find a buyer and negotiate with the lender to help the distressed seller avoid foreclosure, especially when that compensation is split with a co-operating broker representing a buyer. Ultimately, I believe the consumer will be harmed greatly by this law. If real estate agents are not involved in helping distressed sellers sell their property through the short sale process and marketing it on the Multiple Listing Service, the lenders will have no choice but to foreclose. The law must be amended to exclude licensed real estate professionals from the definition of "distressed property consultant" when they are performing services on behalf of a buyer or seller.

Real Estate Tools (Terrific Research Sites)

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Tue, 23 Sep 2008 15:00:10 -0700

o Alltop Real Estate •o Altos Research •o Best Places •o CE Forward •o Craigslist •o Foreclosure Radar •o Global Property Guide (Int'l) •o HomeGain •o Hotpads (Rentals) •o House Data (OFHEO) •o Housing Tracker •o My New Place (rentals) •o MyDealBook •o OFHEO •o Properazzi (Europe) •o Property Shark •o Radar Logic •o Radcribs •o Rentometer •o Roost (Listings) •o S&P/Case-Shiller Index •o Sellsius •o StateMaster •o Street Easy (NY) •o Trulia (Search) •o Zillow (Search) REMAX Kauai Hawaii Real Estate Search

Equity Sharing: In Times Like These !!

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Tue, 23 Sep 2008 11:39:23 -0700

Equity Sharing (edit/delete) An equity sharing deal is typically struck to help sell a home, often in a tough market, but a tough market isn't a prerequisite. It also helps enable a home purchase when it might not otherwise be possible. And it is used to provide an investment with a financial return. Typically savings-poor, but income-rich, one person becomes the occupying homeowner with no or little money down. A second participant, the investor, provides the initial leverage usually in the form of a down payment stake. With time, he or she can enjoy a joint venture-like return on his or her money. The seller, in a slow market, can choose to become the investor or otherwise use the creative financing strategy to quickly seal a deal. Deals vary, but in its simplest form, an equity sharing agreement works something like this: The buyer-occupant generally lives in the residence, pays the mortgage and other costs associated with owning and operating a home -- including taxes, insurance, maintenance and the like. He or she gets to deduct a portion of the mortgage interest, property taxes and others. The non-resident, often an investor, perhaps a family member, trusted friend or professional investor, provides all or part of the down payment, and in return gets tax deductions for her or his share of the mortgage interest and property taxes. Title to the home can be held in a variety of ways -- joint tenancy with right of survivorship, tenancy in common, partnership or as a living trust. Equity sharing deals should be legal and binding contracts designed to provide an equitable means to an end. It should also include provisions for any disputes or disagreements that might arise during its term. At the end of some specified period, five, seven, ten years or so, the net proceeds from the sale are split between the buyer and investor, again, based on contractual provisions. Generally and theoretically, through appreciation, an equity deal is set so that the occupant eventually earns a share sufficient to allow him or her to buy a home without help and to give the supporting investor a shot at a profit. Other resolutions can be contracted. The creative financing tool isn't perfect for every market. While tight money markets can make equity sharing a viable financial avenue to homeownership, a market with flat or reverse home prices requires a deftly drawn contract with a term long enough to allow the deal to gel. As is the case with any major financial transaction, assistance from a professional experienced in equity sharing agreements is paramount. In addition to the transactional contractual considerations, tax implications abound. REMAX KAUAI Property Search

LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY TO PURCHASE MORTGAGE-RELATED ASSETS

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Tue, 23 Sep 2008 11:34:14 -0700

So far, here is the Bail-Out Proposal introduced to Congress. As you know, hearings on the Hill with the "BOYS" is currently underway. Hard to say what modifications may be introduced over the next 24 hours. ..... __________________________________________________________________ LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITYTO PURCHASE MORTGAGE-RELATED ASSETSSection 1. Short Title.This Act may be cited as ____________________.Sec. 2. Purchases of Mortgage-Related Assets.(a) Authority to Purchase.--The Secretary is authorized to purchase, and to make and fund commitments to purchase, on such terms and conditions as determined by the Secretary, mortgage-related assets from any financial institution having its headquarters in the United States.(b) Necessary Actions.--The Secretary is authorized to take such actions as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation: (1) appointing such employees as may be required to carry out the authorities in this Act and defining their duties; (2) entering into contracts, including contracts for services authorized by section 3109 of title 5, United States Code, without regard to any other provision of law regarding public contracts; (3) designating financial institutions as financial agents of the Government, and they shall perform all such reasonable duties related to this Act as financial agents of the Government as may be required of them; (4) establishing vehicles that are authorized, subject to supervision by the Secretary, to purchase mortgage-related assets and issue obligations; and(5) issuing such regulations and other guidance as may be necessary or appropriate to define terms or carry out the authorities of this Act. Sec. 3. Considerations.In exercising the authorities granted in this Act, the Secretary shall take into consideration means for--(1) providing stability or preventing disruption to the financial markets or banking system; and (2) protecting the taxpayer.Sec. 4. Reports to Congress.Within three months of the first exercise of the authority granted in section 2(a), and semiannually thereafter, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate with respect to the authorities exercised under this Act and the considerations required by section 3.Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.(a) Exercise of Rights.--The Secretary may, at any time, exercise any rights received in connection with mortgage-related assets purchased under this Act.(b) Management of Mortgage-Related Assets.--The Secretary shall have authority to manage mortgage-related assets purchased under this Act, including revenues and portfolio risks therefrom.(c) Sale of Mortgage-Related Assets.--The Secretary may, at any time, upon terms and conditions and at prices determined by the Secretary, sell, or enter into securities loans, repurchase transactions or other financial transactions in regard to, any mortgage-related asset purchased under this Act. (d) Application of Sunset to Mortgage-Related Assets.--The authority of the Secretary to hold any mortgage-related asset purchased under this Act before the termination date in section 9, or to purchase or fund the purchase of a mortgage-related asset under a commitment entered into before the termination date in section 9, is not subject to the provisions of section 9.Sec. 6. Maximum Amount of Authorized Purchases.The Secretary's authority to purchase mortgage-related assets under this Act shall be limited to $700,000,000,000 outstanding at any one timeSec. 7. Funding.For the purpose of the authorities granted in this Act, and for the costs of administering those authorities, the Secretary may use the proceeds of the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include actions authorized by this Act, including the payment of administrative expenses. Any funds expended for actions authorized by this Act, including the payment of administrative expenses, shall be deemed appropriated at the time of such expenditure. Sec. 8. Review. Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.Sec. 9. Termination of Authority.The authorities under this Act, with the exception of authorities granted in sections 2(b)(5), 5 and 7, shall terminate two years from the date of enactment of this Act.Sec. 10. Increase in Statutory Limit on the Public Debt.Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting in lieu thereof $11,315,000,000,000.Sec. 11. Credit Reform.The costs of purchases of mortgage-related assets made under section 2(a) of this Act shall be determined as provided under the Federal Credit Reform Act of 1990, as applicable.Sec. 12. Definitions.For purposes of this section, the following definitions shall apply: (1) Mortgage-Related Assets.--The term "mortgage-related assets" means residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before September 17, 2008.(2) Secretary.--The term "Secretary" means the Secretary of the Treasury. (3) United States.--The term "United States" means the States, territories, and possessions of the United States and the District of Columbia. REMAX KAUAI Property Search

For Sellers who absolutely, positively must sell.

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Mon, 08 Sep 2008 04:43:36 -0700

For Sellers who absolutely, positively must sell, here are some of the current incentives and strategies in use today: CARRYING THE NOTE: Offering buyers seller-financing "carry-back loans," which are essentially mortgages or loans financed by the seller. This can be risky. Partition the "carry back" amount into a first and second Purchase Money Mortgage prevents the new owner from obtaining additional financing that would weaken the home's equity position in the event the seller is forced to repossess the home. This works best if the home does not have an existing mortgage, many of which contain "due-on-sale" clauses, meaning the mortgage has to be paid in full if ownership is transferred. Many lenders have been passing up their right to invoke the clause because they're happy that the payments are still being made. This could be risky and Sellers should try discussing this with the lender and seeking written approval first. Cash-back and credit offers: These include offering to pay a year's worth of property taxes, a year's worth of mortgage payments, or a year's worth of owner's association dues if the home is in a planned unit development or condominium project. "Cash-back" offers can be credited toward buyer's down payment, repairs, landscaping, closing costs or mortgage points. Glamour and glitz: Exotic vacations, airline tickets, timeshares, cars, jewelry, season tickets for professional sports, art, high-definition TVs, $5,000 gift cards for gasoline, Macy's, Costco, Home Depot, etc. . . also, anything the Seller has of value that can be thrown in !! Lease-to-own options: This is attractive to buyers who believe the market might drop further or for buyers who are short on down payments or who can't get traditional financing in tightening credit markets. Option structures differ greatly. A rent-to-own agreement, also called "lease-to-own" or "lease-purchase," is a binding agreement to buy the home at a set price at the end of a period of time. It offers a little better security for the seller. A lease-option arrangement gives the renter a legal buy-option after a given period, but isn't an obligation. Applying some or all of the rent payments can be included as additional incentives. The BIGGEST incentive of all -- proper pricing: A home must be priced correctly in relation to comparable sales (over the last 4 months) not the 2004-2005 pricing that other sellers got. It's a new market with new values. Sellers MUST get their eyes off "the old market." Incentives and everything else take a back seat to this as the TOP Buyer incentive . . . hands down !

Working With Your Kauai Real Estate Agent

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Fri, 05 Sep 2008 09:01:25 -0700

Selecting the right real estate agent to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider a professional's background, personality and responsiveness. Here are some tips to help you choose and work with your real estate agent. How to choose a real estate agent When it comes to choosing a real estate agent, consumers who do their homework can save thousands of dollars and experience a smooth financial and physical transition. So don't waste time and resources - decide what's most important to you, and then find a professional who specializes in that area. Are you buying or selling a loft? A condo? A rural property? Raw land? An investment property? Perhaps cost is your main concern. Or timing. Whatever you decide, a RE/MAX Associate can help you. Ask friends and family members for referrals. Someone you know and trust to help you meet your real estate goals. If you've already determined where you'd like to live, drive through neighborhoods in the area and survey them for Realtor yard signs. Seeing the same name pop up on signs time after time may indicate that the agent is a specialist in the area. If you're thinking about selling, monitor the signs in your own neighborhood. Pay attention to credentials. This will help you determine areas of expertise. You may be interested in these designations: ABR (Accredited Buyer Representative), CLHMS (Certified Luxury Home Marketing Specialist), CRP (Certified Relocation Professional), CRS (Certified Residential Specialist) and SRES (Seniors Real Estate Specialist). There are dozens of designations pursued for continuing education, so identify one or more that fit your needs. What to ask in the interview If selling, ask the real estate agent how he or she would establish a price. Request a Comparative Market Analysis, also called a CMA, which shows the market value of similar homes in the area that are for sale or have recently sold. If selling, ask the real estate agent how he or she would market your property. Understand that some agents may prefer to first tour your property and then put together a comprehensive customized marketing plan to present at a later meeting. But if he or she can't suggest a single strategy when asked, you might consider interviewing other candidates.. Ask the real estate agent how often you should expect to hear from him or her. Know how and when you will communicate to avoid unrealistic expectations. Pay attention to office hours and whether you'll be invited to stay in touch via a cell phone or e-mail. Ask how long the real estate agent has been licensed and how many buyers and sellers he or she has helped. While time is not the most important factor, it may demonstrate experience. Ask about designations. Interest in continuing education is a strong indicator of motivation and professionalism. Pay attention to the agent's listening skills. Does he or she cut you off before you've finished a sentence? There's nothing worse than looking at houses you have no interest in because the real estate agent has not listened carefully to your needs, or having your home on the market too long because it's priced incorrectly and the wrong buyers are being targeted. Ask the real estate agent what his or her fee structure is. Does he or she require a percentage of the sales price or work for a flat fee? Will the agent be paid another way? If you are unsatisfied with a prospect's plans or personality, thank him or her for taking the time to meet with you and repeat the process with another real estate agent. It can be time-consuming, but it's worthwhile.Once you've found the right real estate agent to represent you, hold up your end of the relationship. There are simple things you can do to help your real estate agent get you the best deal. How to work with your real estate agent If you are selling, create an information sheet that lists your home's features and best qualities, especially those you know best that others might overlook. Give this to your real estate agent, who may be able to use the information in marketing materials or when talking with potential buyers. When selling, talk to the real estate agent about cosmetic improvements. Your home may need fresh paint or new carpet. (Make sure you choose neutral colors.) If selling, keep it clean. Eliminate cobwebs and dust. Keep the bathroom counters and mirrors wiped down. Vacuum and sweep daily during the selling process. If buying, be clear about what you want. Make a list of your priorities numbered 1 through 10 and give it to your real estate agent. You can always revise the list, but give your real estate agent something concrete so that he or she can research available listings more efficiently. Food for thought Office environment can say a lot about a businessperson. Is it clean and organized? Do the office hours make it easily accessible? Are staff members pleasant and helpful? Your real estate agent is an authority you hire to help you make the right decisions, but you have the final word. Hiring a Realtor will give you the best advantage. Although many practitioners work part time, RE/MAX Associates are industry professionals who can provide their complete attention and expertise. This gives you an enormous advantage. Your residence is likely to be the biggest single investment you'll ever make. Buy and sell wisely. Remember that home values fluctuate with the economy.

All About Kauai

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Fri, 05 Sep 2008 08:56:31 -0700

Kauaʻi (in standard Hawaiian pronounced [kauˈaʔi]; in Kauaʻi-Niʻihau dialect, [tauˈaʔi]; usually spelled Kauai outside the Hawaiian Islands and pronounced /ˈkaʊɑɪ/ or /kaʊˈɑɪ/[1]) is the oldest of the main Hawaiian Islands. With an area of 552.3 square miles (1,430.5 km2), it is the fourth largest of the main islands in the Hawaiian archipelago and the 21st largest island in the United States.[2] Known also as the "Garden Isle", Kauaʻi lies 105 miles (170 kilometers) across the Kauaʻi Channel, northwest of Oʻahu. Of volcanic origin, the highest peak on this mountainous island is Kawaikini at 5,243 feet (1,598 m).[3] The second highest peak is Mount Waiʻaleʻale near the center of the island, 5,148 feet (1,569 m) above sea level. One of the wettest spots on Earth, with an annual average rainfall of 460 inches (11,700 mm), is located on the east side of Mount Waiʻaleʻale. The high annual rainfall has eroded deep valleys in the central mountains, carving out canyons with many scenic waterfalls. There is no known meaning behind the name of Kauaʻi. Native Hawaiian tradition indicates the name's origin in the legend of Hawaiʻiloa - the Polynesian navigator attributed with discovery of the Hawaiian Islands. The story relates how he named the island of Kauaʻi after a favorite son; therefore a possible translation of Kauaʻi is "place around the neck", meaning how a father would carry a favorite child. Another possible translation is "food season"[4]. The United States Census Bureau defines Kauaʻi as Census Tracts 401 through 409 of Kauaʻi County, Hawaiʻi, which is all of the county except for the islands of Kaʻula, Lehua, and Niʻihau. The 2000 census population of Kauaʻi (the island) was 58,303. [5]

Kauai South Side Home Sales Over $1,000,000 2008 - YTD

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Fri, 05 Sep 2008 05:19:52 -0700

Kauai South Side Home Sales Over $1,000,000 2008 - YTD
	Taxkey	Location	Bedrooms	Bathrooms	Land Area	Living Area	Days on Market	Price per square foot	Sold Date	Sold Price	Subdivision
	4-2-3-24-14	Kakela Makai Dr	3	3.50	10,728 sqft	2,700	51	581	7/8/2008	$1,570,000	Kakela Makai
	4-2-6-14-30	2963 Pua Alani Pl	6	4.50	25,439 sqft	4,019	52	336	6/26/2008	$1,350,000	Koloa Estates
	4-2-6-3-17	4432 Lawai Beach Rd	3	2.00	12,381 sqft	2,341	656	2,414	7/7/2008	$5,650,000	Koloa
	4-2-8-20-54	1709 Keoniloa Pl	4	3.50	12,950 sqft	2,202	23	522	2/19/2008	$1,150,000	Weliweli Heights
	4-2-8-29-86	2737 Milo Hae Loop	3	2.50	10,615 sqft	2,231	39	538	3/14/2008	$1,200,000	Kiahuna Golf Village
	4-2-8-29-72	2859 Milo Hae Loop	4	3.50	12,010 sqft	3,676	188	365	3/18/2008	$1,340,000	Kiahuna Golf Village
	4-2-8-28-4	1691 Kelaukia St	4	3.00	9,292 sqft	2,135	129	627	7/16/2008	$1,338,000	Lanai Villas @ Poipu
	4-2-8-28-64	1712 Keleka Rd	3	3.50	9,583 sqft	2,486	36	523	1/2/2008	$1,300,000	Bayview @ Poipu Kai
	4-2-8-29-13	5344 Puuone Pl	4	3.50	20,797 sqft	3,537	253	439	2/26/2008	$1,551,000	Kiahuna Golf Village
	4-2-8-30-41	Wainani At Kiahuna Lot #:41(27)	3	3.50	8,000 sqft	2,026	81	814	7/3/2008	$1,650,000	Wainani at Kiahuna
	4-2-8-29-27	2888 Milo Hae Loop	3	3.00	10,534 sqft	2,322	25	736	2/28/2008	$1,710,000	Kiahuna Golf Village
	4-2-8-27-3	1552 Pee Rd	4	2.50	13,127 sqft	2,601	76	661	3/5/2008	$1,720,000	Crestview @ Poipu Kai
	4-2-8-29-54	5387 Milo Hae Pl	3	3.00	15,610 sqft	2,763	23	633	2/11/2008	$1,750,000	Kiahuna Golf Village
	4-2-8-28-91	2228 Iukika Pl	5	4.00	10,858 sqft	2,950	116	593	6/16/2008	$1,750,000	Bayview @ Poipu Kai
	4-2-8-29-10	5347 Puuone Pl	3	3.00	14,356 sqft	3,124	72	596	6/5/2008	$1,862,500	Kiahuna Golf Village
	4-2-8-29-22	2671 Puuone St	2	2.50	11,965 sqft	2,123	293	836	2/26/2008	$1,775,000	Kiahuna Golf Village
	4-2-8-29-30	2868 Milo Hae Loop	4	4.00	12,113 sqft	3,261	67	546	6/10/2008	$1,780,000	Kiahuna Golf Village
	4-2-8-19-10-1	1831 Pee Rd #A	11	11.50	15,871 sqft	7,057	225	765	4/30/2008	$5,400,000	Poipu Beach Lots

Where's The Bottom?

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Sun, 10 Aug 2008 06:27:29 -0700

Buyers continually tell their agents they are looking for the "bottom" of the real estate slide to occur before they make a purchase. Somehow they feel the "Bottom" will be signaled by something significant to let them know that the Bottom has actually arrived. However, nothing like that ever happens. The Bottom (when it comes) is typically quiet and subtle. This Bottom is no different from Bottoms past. Further, the only true measure of the actual Bottom is when market prices begin to increase as a result of increased demand and lower inventory. Then it's too late and the Buyer's advantage then shifts to the Sellers. The Bottom of a real estate cycle occurs when regular people can once again afford to buy houses. It arrives when reduced prices and reduced cost of capital unite to make home buying reasonable again. This cycle's Bottom may arrive sooner than you'd expect since national media attention has driven prices through the floor and our new Fed Chief, Ben Bernanke, has lowered interest rates very rapidly! The peak in house prices was somewhere in late 2005 nationally and in mid-2006 here in Hawaii. Accordingly, this leg of the cycle is now about 3-years old. Nevertheless, millions of Sellers have yet to re-price their properties to match the current drop in demand. They, of course, need to make significant price adjustments to attract Buyers. However, in nearly all normal markets the normal person can once more afford to buy a normal house. This means that demand will increase as the public catches on and inventories begin to drop as prices are adjusted correctly. Buyers who have been waiting on the side-lines to buy property as cheaply as possible should do so while they are the only Buyer the Seller has seen of recent. Before too long there will be several interested Buyers and such advantage will be lost. The Baby Boomers are now nearing retirement. If one percent move to Hawaii there will be a demand increase on the supply of housing by as much as 70,000 units. If only ½ percent move here, that's still 35,000 new Buyers.

Kauai Single Family Residences

James Pycha (REMAX Kauai - Koloa/Poipu Offices) — Sun, 10 Aug 2008 04:03:44 -0700

This Chart indicates both the periodic seasonal rises and drops in the market together with the trendline created over nineteen years of sales. This creates an annual appreciation average of approximately 14%. Other contributing factors to overall market behavior are number of sales and sales volume which have impact on prices.