Denise Nakanishi

The “Super Bowl” of Transactions

Real Support — Sat, 04 Feb 2012 02:10:00 GMT

Nothing is more American than the spirit of self-reliance, but trying to quarterback the largest transaction of your life can actually find you throwing passes right into the hands of the opposing team. Statistics show that you can cost yourself time, effort and certainly money by attempting to do so. The majority of homes sold are still listed with an agent, especially here in Hawaii. With so many buyers from off-island, it’s unrealistic to believe buyers have time, patience or motivation to drive miles and miles of roads scouting “For Sale” signs. With a limited amount of time in which to conclude their purchase, they want to make wise use of their time.

After one disappointing experience visiting a home listed in the newspaper or viewed on the owner’s web site, most buyers flock right back to an agent. Motivation alone should leave buyers and sellers with serious doubts about proceeding without professional assistance. Sellers normally desire to “save” the commission or worse, they may be attempting to hide defects or get around State owner-builder regulations. Buyers are looking for sellers representing themselves because they generally feel it’s a good way to get bargain basement pricing. They are looking for a “deal”. In other words, there is simply no common ground from which to achieve a “meeting of the minds”.

Sellers normally find themselves wasting precious marketing time placing ineffective advertising and showing the home to unqualified buyers. Interested buyers usually find themselves unable to interact honestly with a seller about their property or are so unsure of themselves they back away. So, if getting across the “sold” line is your goal, hire a professional quarterback. Just like the big guys, we’re extremely motivated for you to win in the biggest of all financial transactions!

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

2011: How We Fared...Should We Be Scared??

Real Support — Fri, 27 Jan 2012 23:03:00 GMT

While activity this past year certainly felt stronger than 2010, the statistics don’t seem to support much improvement in some of our East Hawaii neighborhoods. Overall sales on Hawaii Island were up over 7% as 1,619 homes changed hands. Land sales increased an unexpected 15.66% as over 1,100 parcels sold. The median price of Big Island homes decreased 5% to $247,000 while land parcels fetched a median price of $24,900, a decline of 12.6% over the previous year. Puna residential sales declined around 3% but land sales increased over 12%. Sales of South Hilo homes also slowed slightly (4%) but land sales went up 27%. Land prices increased 18%. Even North Hilo vacant land showed a bump of 11.3% in pricing and 57% in activity.

Each column on the attached chart (except the last) compares 2010/2011 followed by data related to distressed sales (D*). Distressed properties for sale in Hilo currently account for only 12% of the homes for sale. Hawaiian Paradise Park is affected to the tune of 34%. Areas which have been slow for several years seem to be coming to life (Volcano subdivisions) while other neighborhoods (Nanawale) appear to be healing as the number of distressed properties seems to be on the decline. The bump in vacant land transactions could indicate that buyers aren’t finding what they want in existing inventory, or it could just mean that buyers are finding great investment opportunities in vacant land.

Most buyers I’ve worked recently with feel prices have gone about as low as they are going to go. If recent reports regarding the positive effects of Act 48 are correct, we should see the number of distressed properties decline. I’m not convinced they will. While I fully endorse the oversight created by Act 48, I believe lenders have moved non-judicial foreclosures to a lengthier judicial process. It has likely only delayed many foreclosures. Many Hawaii buyers are buyers of opportunity. They visit, make a buying decision from among current inventory and leave. This means that inventory is absorbed at a consistent pace, so there’s a good chance delayed effects of Act 48, if any, will not severely impact our recovery.

Over the next few weeks, we’ll talk about new and improved loan modification rules and how they are severely prejudiced against self-employed individuals including most small business owners. And don’t forget, if you don’t see information about your neighborhood here, just go to www.hawaiianrealty.com to sign up for a personalized “Market Snapshot”! And have no fear, our market really is feeling much better.

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

ROTY

Real Support — Fri, 20 Jan 2012 19:44:00 GMT

Even though it sounds like something that might require extra strength antiseptic, being named REALTOR® of The Year is quite an honor. As the 2009 co-selectee, I can attest how rewarding it is to be recognized. With about 650 members, the Hawaii Island REALTORS® (HIR) is comprised of members from all over Hawaii Island. To be selected REALTOR® of The Year (ROTY), each nominee’s contribution to our industry is scrutinized against others using a broad range of criteria.

Nominees are recommended by their peers while selection is made by a committee of former winners. Selectees are seasoned agents who dedicate themselves to serving the public demonstrating the highest ethical standards. They devote countless hours improving our professional organization at all levels. Consideration is also given for community involvement and promotion of the REALTOR® image. The National Association of REALTORS® requires that their members subscribe to a strict code of ethics. Selection as REALTOR® of The Year underscores a personal and professional commitment above and beyond this already strict professional standard.

The 2011 recipient was selected from a wide field of anonymously nominated agents. The field of nominees for 2011 was amazing. The dedication and contributions of the nominees is a real testament to our professional organization. In the end, Julie Ching of Windermere Real Estate in Kona was selected for her commitment to our Island community, Hawaii Island REALTORS® and for unselfishly fostering the success of her fellow agents. Julie devotes countless hours driving and accompanying cancer patients to their appointments. She spearheaded a sweater drive for our Veterans’ home and she serves as the unofficial emissary of Hawaii Island REALTORS® in West Hawaii. She’s loves to golf and she has never met a fish she didn’t like. She loves being a REALTOR® and sets high standards in all she does. Please congratulate Julie when you see her. Her dedication and enthusiasm are so obvious that you’ll instantly understand her addition to the elite group of former recipients below:

2010   Debbie Au
2009   Mealoha Kraus and Denise Nakanishi
2008   Gary Rothfus
2007    Heather Hedenschau
2006   Arabel Camblor
2005   Wade Park and Frank Goodale
2004   Gary Davis
2003   Christine Makaweo
2002   Gae Callaway
2001   Mary Begier
2000   Adele Eggel
1999   Chris Brilhante
1998   Helene Tajiri
1997   Edith Crabb
1996   Nancy Cabral
1995   John Tolmie
1994   Robert G. Williams
1993   Michael Shewmaker
1992   Glenetta Bennett
1991   Daniel Wilson
1990   Doris Smith
1989   Yukio Takeya
1988   Pat Ito
1986   Paul Ingledew
1985   Patricia Scullary and Delene Osorio
1984   Bill Pendered Jr.
1983   Jerry Hirata
1982   Alvin Inoue
1981   Vern Yamanaka
1980   Alma Prigmore
1979   Elroy Osorio
1978   Doris Smith
1977   Beverly Paplimu
1976   Peter Shayne
1975   Helene Hale
1974   Kenneth Griffin
1973   Edward Araujo
1972   Masashi Yamanaka
1971   Leina’ala Devine

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

Taking Things to a "HIgheR" Level

Real Support — Sat, 07 Jan 2012 01:20:00 GMT

Being the volunteer President of a professional organization with almost 650 members is a daunting task. When the trade organization is the board of REALTORS®, the President's decision can affect not only the members but the community at large. With daily meetings and constant interface with State and National organizations, the schedule an be exhausting. There's extensive off-island travel along continuous monitoring of County and State initiatives that potentially impact property owners.

As a Director for Hawaii Island REALTORS® (HIR®) for years, I have a deep appreciation for the job. This past year, HIR® made remarkable strides under the very capable leadership of Julie Hugo. I am proud to have served with her. As 2012 begins, I'm thrilled to say that the gavel has passed to the other half of Team Nakanishi as my daughter, Mealoha Kraus assumes duties as the youngest ever President of HIR®.

It's difficult not to fall in love with Mealoha. When she was 4, I looked out to see her going down a steep hill in the snow... on a Big Wheel... with roller skates on. You might question her sanity (and yes, my heart stopped). Here's the thing. She has great confidence in herself and her abilities. Taking off the skates would have used up valuable time. At that time, she spoke fluent German and knew everyone in the village of Niederkirchen. Her overalls were her uniform. She'd stuff her pockets and off she'd go! She has a giggle that makes everyone smile.

I recall her making morning rounds and the UH - Hilo dorms. She didn't live there, she just wanted to be sure everyone went to class. She's responsible that way. Long before others were surfing the web, she figured out how to get information on-line so that she could insert it in the UH - Hilo newspaper even ahead of our local paper. Common today, but at the time, it was genius. She, along with Jo'el Nathansen assisted Dr. Marlene Hapai in putting together the first iteration of Astroday. It's an event that evolved into a phenomenal science showcase. I knew she'd graduate UH - Hilo with honors because if she's in, she's all in!

In 1999, as a tiny 120 lb weightlifter, she was second in the nation. As a part of a large Hawaiian family on the island, there was never a question about how her children would be educated. She now speaks Hawaiian and her children attend Ke Kula 'O Nāwahiokalani 'ōpu'u. Of course, the passion that is roller derby came as no surprise. She also serves diligently as a part of the "Skate Park Coalition," whose goal is to establish a safe place for skate related activities in East Hawaii. At HIR®, she has chaired the Member Services Committee where she instituted a program to promote local businesses. As the Public Relations Chair, she recently spearheaded the hugely popular REALTOR® Raise, Project Playhouse; a benefit for Habitat for Humanity.

Those who saw REALTORS® bell ringing bells this year should know that it was Mealoha coordinating things behind the scenes. As a new REALTOR®, she twice took the reins of a very successful Sunshine Kids Horseshoe fundraiser. Mealoha is very intelligent and has uncommon common sense. We at HIR® are indeed in capable hands - or on a strong set of shoulders, as the case may be. Go Tsunamea!

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

A Gift For You…and Your Neighbor, Too!

Real Support — Fri, 16 Dec 2011 17:04:00 GMT

Tired of getting your market updates through the “coconut wireless”? Do you have the feeling that reports from the neighbor regarding houses selling for “big bucks” may not be completely accurate? If so, you should probably trust your instincts because not since the early 90s have buyers arrived with briefcases full of cash ready to pay whatever takes to buy a property.

In fact, today’s sales are all market rate….. or below. Truth is, that even during the height of the market during the last decade, prices were somewhat tempered by a buyer’s hope of flipping a house in order to turn a quick profit which all makes relying on the “coconut wireless” a very poor plan. Here’s the thing, while market data is available on-line, finding it requires both time and a specific address. There is really no way for the public to research entire neighborhoods and besides, like foreclosure information, data can be inaccurate.

Those interested in getting reliable information covering an entire Big Island neighborhood without spending hours in front of the computer should know that Team Nakanishi is happy to offer every homeowner on Hawaii Island the opportunity to be kept up-to-date regarding residential real estate information. This service is free and certainly without obligation or solicitation to use our services. In fact, even if you have an established relationship with another agent, we are happy to have you participate. Whether you are thinking of selling, trying to time the market, want to know what’s for sale in a specific neighborhood, interested in recent sales or just want to keep up with the market, you are welcome to register. Yep, whatever your motivation, Team Nakanishi will happily deliver the information directly to your computer free of charge. Not only will it save you time sifting through questionable on-line resources but there’s no longer a need to feel guilty about calling an agent when you need to verify what’s really going on. In fact, one of the great features of our market update is that you don’t even need to call to sign up.

We firmly believe that information is power and when it comes to your own neighborhood, information can be critical. Getting started is simple. Just go to www.hawaiianrealty.com and click on the widget that says “Market Snapshot”. Enter basic information regarding your report preferences and start receiving the information automatically. You can also email us at teamnakanishi@hawaiianrealty.com or give us a call at 969-7863. Whatever is easiest for you is fine with us. Unfortunately, we only have automated information regarding residential transactions at this time but those wishing to receive vacant land updates can email us and we’ll update you manually from time-to-time. It’s our way of saying Mele Kalikimaka by keeping everyone on Hawaii Island up-to-date when it comes to real estate! Merry Christmas Everybody!

I’m Dreaming of a White Christmas…

Real Support — Fri, 09 Dec 2011 21:50:00 GMT

Time was, selling a home meant that everything got a fresh coat of white paint! These days, the concept of “staging” has caused us to re-think the “white sells best” concept. A couple of years ago, I read an interesting article in the Old Republic Title News Digest. The article took an interesting look at colors and the messages they convey. Jamie Jackson, an interior designer with Pacific Home in Honolulu helped explain the psychology of color.

Basically, each color palette paints a picture of a different lifestyle. For instance, it’s no accident that white conveys cleanliness. It’s the symbol of peace (dove), purity (bride) and elegance. Jamie says white, especially in Hawaii, can be used as a “blank canvas” upon which an owner can build. Contrary to popular belief, blue is a calming color not a depressing one. Jamie says that blue can be a reflection of the ocean. It’s being paired with contrasting colors and neutrals such as reds or rich dark browns. In my personal experience, blue is a color that evokes strong emotion; people love it or they hate it.

Green obviously is a color that paints our island landscape. It can be a spring color symbolizing “renewal and growth” or it can be a calming color. Lanai areas are typically green focused areas. Be careful with “Paniolo Green” houses however. I’ve found that only homes built in the original style can get away with such strong exterior paint.

Lemon yellow “represents harmony and optimism”. Jamie suggests that painting only one wall a “golden yellow will make a room appear larger”. Although citrus yellows may reflect the sunlight, I don’t find many amateurs using it successfully in their staging efforts. Like yellows, “dessert” colors such as tangerine, are considered joyful colors. Because they tend toward the warm range, I have seen them used quite successfully.

I recently visited a home with purple bedroom walls. Children love the idea but unfortunately, children aren’t normally the ones selecting the home. Jamie says that purples and pinks represent the “feminine side” but in Hawaii, they are also reflections of our tropical flowers. Apparently, a little goes a long way. Jamie suggests using them as accent colors.

During a recent REALTOR® caravan, one home that evoked a very positive response was painted a combination of warm colors with white as an anchor. The use of color definitely turned an otherwise basic home into a showpiece. Giving up all white can be scary I’ll admit but there’s no need to “go where no man has gone before” in order to achieve great results. It’s fairly simple to find homes on-line that have used color to the fullest advantage. Your agent can likely recommend a good home stager, decorators and designers.

Whatever color palette you choose, here’s hoping it all turns out Merry and Bright! Merry Christmas everybody!

Jamie and her partners can be found at www.pacific-home.com.

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

The Ghost of Christmas Past

Real Support — Fri, 02 Dec 2011 16:18:00 GMT

Christmas in Hawaii is like no other place. Santa sports a permanent tan, often wears shorts with rubber slippers and has been known to arrive in a canoe. Those celebrating a white Christmas are probably enjoying snow that was brought from Mauna Kea in the back of a pick-up truck . Seems to me if one were searching for the world’s foremost authority on real estate, Santa would be the man! He’d know that, even on Hawaii Island, all real estate is local….very local, in fact.

With snow on the mountain and beach weather below, there can be “major differences” between one neighborhood and the next. A snapshot of activity over the past decade provides an historical perspective on our East Hawaii markets. Obviously, 2011 has not ended so the numbers for this year are based on a mathematical predication using the first 11 months of the year. December is normally very strong so I expect these numbers to end higher.

This walk down memory lane offers a few surprises. Interestingly, current sales numbers look very similar to those of a decade ago which was considered a very even market (favored neither buyers nor sellers). And even though prices are still far below the 2006 peak, we’d only need to travel back to 2004 to find property selling for about what buyers are currently willing to pay. Foreclosures continue to influence our market and will likely do so for at least another year. We are fortunate to have a highly coveted product in Hawaii real estate. This continues to make market rate sales still quite common.

As we enter the Christmas selling season, buyers should expect that sellers aren’t testing the market at the moment. Those listed are serious about selling and have priced accordingly. Realistic pricing (considered to have leveled) coupled with historically low interest rates, means there’s no reason buyers should allow another Christmas to pass without a new home for next year’s tree. So, this holiday season, take time to join Santa and your favorite REALTOR® in examining our local real estate. Don’t let the missed opportunities of 2011 become just another Ghost of Christmas Past!

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

Customary and Traditional Hawaiian Rights

Real Support — Mon, 21 Nov 2011 18:01:00 GMT

I recently read about an agent who specializes in sales of lakefront property. He mentions consideration of water depth, shallow spots, idle zones, channels and big water views as things buyers and sellers in his market should consider. I have to be honest, even though I grew up on a huge river, I’d never heard of some of these issues. I found myself thinking how lucky his clients are that their agent knows the area well.

Of course, on Hawaii Island, we have quirky issues like catchment, SSPP participation, lava tubes, lava zones, tsunami evacuation / inundation areas, and special management areas to name a few. These are actually fairly straight forward, easy to understand issues.

Unfortunately, the issue of “Customary and Traditional Hawaiian Rights” isn’t quite so simple to explain. In fact, without an astute agent, the issue sometimes slips in as an exception to the title insurance coverage. Native rights have two sources. One emanates from the original grant and is therefore contained in the original chain of title. This type reservation is almost impossible to remove. The other type is a reservation established by law and by the Hawaii Supreme Court Decision** commonly referred to as PASH. In a nutshell, these reservations mean that individuals of Hawaiian ancestry (and possibly others) who have traditionally entered and used the property for customary and traditional practices may have the right to continue doing so.

Traditional practices are generally for subsistence, gathering, access (for instance, to gravesites) and for cultural and/or religious purposes. The list and interpretations is fairly broad, however, the right to enter the property of others is rarely exercised because establishing historical use really isn’t so simple. Properties subject to PASH, in fact, have a limitation to “undeveloped” and “underdeveloped” parcels.

In East Hawaii, we most commonly see these exceptions North of Hilo and most commonly on larger pieces of land. This is not universally true. I have seen the exception even on a residential property. While the reservation may never become a practical problem, it’s often an issue with lenders. Some title companies will “insure over” the exception. This basically means that they will issue the title insurance policy but if they will not cover claims related to the omitted issue. PASH reservations are sometimes removed by providing proof to the title insurer that there are no archeological, graves or historical sites on the property. Other considerations would be the existence of physical features such as streams, trails, gulches or fish ponds included on maps or historical documents. The proximity to ceded lands, the ocean, heiau/other archeological sites and a determination of development status of the property are other considerations.

Title companies use various methods for determining if an exception can be removed. For those considering a purchase (especially) along the Hamakua Coast, it’s a good idea to ask the seller’s agent for a preliminary title report from the git-go. In the meantime, I assure you that I won’t be buying property on Morse Lake without REALTOR® Andy Sheets who specializes in that area. After all, hiring a local expert really provides the best insurance against making your best buying and selling decisions.

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

House Hunting at the Mall??

Real Support — Fri, 04 Nov 2011 15:25:00 GMT

Yep, you read the title correctly. The agents of Hawaii Island REALTORS® are suggesting that, at least for now, one of the best places to go house hunting is Prince Kuhio Plaza. Why in the world, you ask, would the world your trusted real estate advisors be directing you to, of all places, our local shopping mall? That’s because four of the hottest properties on the market can only be seen and are currently on display there. But don’t dilly-dally because you’ll only be able to view these premium homes of midget proportions now through November 19^th .

Let me explain.

Sit back and relax because there’s no better place to enjoy tropics than from the rocking chair on the front lanai of the Prudential “Smurf House”. With meticulous details including custom shutters, gridded windows, solar lighting and a unique sleeping loft, it’s sure to appeal to those with an eye for high style.

The Coldwell-Banker “Plantation Hale” sports styling is reminiscent of yester year. Complete with hammock and perennial Christmas lights, it’s sure to tug at the heart strings of those who grew up from Camp 7 in Hilo to Camp 17 in Honomu.

Hawaii Life’s “Life Boat” is as original as it is fun. The built in sand box and upper level “all hand’s on deck” offer landlubbers the option to think outside the box. The “President’s Palace” is so unique that you just have to see it. The ability to collapse the house for easy transportation, it’s the Hawaii Island Realtors® Presidential answer to Air Force 1 meets Camp David.

But here’s the thing. You can’t buy these “houses”. In fact, if you are more than 3.5 feet tall, you probably can’t even stand up in them. Make no mistake however, these homes were built with love and are all aggressively seeking new owners.

Curious about how to close the deal on these hot properties? Visit center court at Prince Kuhio Plaza each weekend between now and November 19th. For a $5 donation, you can buy a commemorative Hawaii Island Board of Realtors® keychain. During the annual “Festival of Giving”, anyone who presents a keychain will be issued a key. All four homes will be identically keyed. The key that opens the door of any home first will be able to choose a permanent home for that playhouse; your house or mine, either will doJ

When you visit the mall, be sure to bring lots of cash because there’s a good cause behind all the effort that has gone into “REALTOR® Raise: Project Playhouse”. A benefit for “Habitat For Humanity”, the goal is to jump start the your local board of REALTORS® efforts toward helping needy local families realize their dream of homeownership.

Can’t make it to the mall? Prefer to pay by credit card? Keychains can also available at the Hawaii Island Realtors® office at 28 Waianuenue Ave (808-935-0827) or call your favorite REALTOR®. Remember, while it’s all for a good cause and you can’t “buy” any of these luxury residences, it’s always a good time to take steps toward homeownership It’s just another good reason to call your favorite REALTOR® today. My number is listed here->

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

Spooky Decisions

Real Support — Fri, 28 Oct 2011 15:54:00 GMT

Out of the clear blue of the Western Oahu sky has come a recent directive that stands to affect the Veteran population to whom we all owe so much. It also stands to negatively affect the value of all homes on catchment throughout Hawaii Island. When I was in the Army, one of the first things I learned was that “if it ain’t broke, don’t fix it”. It’s a lesson that must have surely been lost before it reached the flagpole of the Department of Veterans Affairs who recently disqualified all homes serviced by catchment systems in our Aloha State.

Curiously, only Pennsylvania has a similar prohibition (no reason cited) and yet, all have homes with some form of catchment water. The Hawaii prohibition is based on a recent statement issued by the State of Hawaii Dept of Health that “water catchment systems are not recognized as potable water”*. The same VA at the State level previously issued a blanket approval of huge rural subdivisions such as Hawaiian Paradise Park, Nanawale Estates, Ainaloa Subdivision and Hawaiian Ocean View Estates to name a few.

Loan guarantees have also been issued for hundreds of homes in Fern Acres, Ohia Estates, Royal Hawaiian Estates, Volcano Village, Kaumana City and Volcano Golf and Country Club. These rural areas not only provide affordable housing but with larger than average lot sizes, they provide much desired privacy and solitude for our Vets. Never mind that our National Park uses catchment tanks and that on Hawaii Island, a far larger geographic area is serviced by catchment than piped water.

The thing is, VA does not make the loan. They simply guarantee loans. Their primary focus should be on assuring sufficient collateral. Not unlike the lava zone exclusions, VA has elevated what should be a County of Hawaii issue to Washington DC. In 2004, the Center for Tropical Agriculture (UH Manoa) estimated that some 30,000 to 60,000 people in Hawaii County relied on catchment. The newest iteration of their handbook** did not update this figure.

Hawaiian Paradise Park has been for years considered the fastest growing area in the state so today’s number is likely much higher. Besides indirectly affecting the value of the homes in primarily Puna and Ka’u by eliminating yet another loan program and pool of buyers, it’s conceivable that there will be a spill-over affect on other popular loan programs. Programs, without which, local buyers will lose their best hope for attaining homeownership.

Eliminating homes on catchment forces the Vet to look in our urban areas where most homes considered affordable will not qualify because of condition. In addition, this decision will stop all VA refinance requests at a time when interest rates are historically low. Sadly, this comes just as we prepare to honor our nation’s heroes on Veterans Day. I hope you all find this news as spooky as I do.

* Water Catchment Systems – The Hawaii State Department of Health has determined that water catchment systems are not recognized as potable water, and there is no government agency oversight of these systems in Hawaii. Properties served by water catchment systems, as the source of domestic water, do not meet VA Basic Minimum Property Requirements (MPRs) requiring, “a continuing supply of safe and portable water for drinking and other household uses” and therefore are not eligible for VA appraisals.**Guidelines on Rainwater Catchment Systems for Hawaii, updated 2010

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

How Does Your Garden Grow?

Real Support — Fri, 21 Oct 2011 16:46:00 GMT

Whether it’s a small garden, a big yard or a tropical retreat, the outdoor botanical experience is a huge part of why many people buy homes in Hawaii. Our unique climate offers the opportunity to create exquisite gardens that potentially bring value to the sale. While appraisers generally agree about the value of a new kitchen or a remodeled bathroom, there’s seems to be no set standard on how to quantify the true value of the one thing that makes that all important first impression.

At the same time, the value of quality landscaping can’t be under-estimated. Take for instance, Leilani Estates. It’s an area that epitomizes the value that quality landscaping can add. Drive up Luana to Malama, cruise Kupono, Nohea or Moku Streets. Pick any street, it doesn’t matter. You’ll find one enchanting property after another. It’s indisputably a garden seekers paradise.

So, how do appraisers assign value in situations where landscaping is as integral to the package as the dwelling itself? I asked several trusted local appraisers. Each provided a different response. Most agreed there is no hard and fast rule about how value ought to be assigned. Because it’s not a required field on an appraisal report, it’s fair to assume that most loan underwriters (those responsible for scrutinizing appraisal reports for lenders) don’t consider it a core consideration when it comes to value. Obviously however, quality landscaping can’t be easily ignored.

For the most part, local appraisers felt a reasonable adjustment would be 5-7% of overall value. In researching the topic on-line, estimates reached 15%. I examined several recent appraisal reports, including one with very elaborate landscaping where the appraiser noted that the landscaping was “good” yet made no value adjustment. There’s no question that the botanical garden setting was integral to that sale and yet the appraiser took a conservative approach and assigned no additional value.

A few cautions about landscaping: Plantings located too close to the home promote moisture retention, which in turn becomes a conduit for termites. And while albezias can be beautiful, they don’t require fertilizer and you don’t want them close to your house. Tree removal can be expensive and is certainly best left to the pros (call us for our totally biased recommendation).

Be careful what you plant. There are a number of agencies willing to advise regarding invasive species. Seems we’ve had a bumper crop of pigs of late so be sure to protect your landscaping investment from critters. Remember, just as a fresh clean home with new flooring, fresh paint and updated kitchens and baths insures a faster sale, quality landscaping will make a huge difference in marketing time and to a lesser extent that all important eventual bottom line.

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

Improvement in 3rd Qtr 2011??

Real Support — Fri, 14 Oct 2011 21:47:00 GMT

At the beginning of last quarter, I started reporting Waiakea (3-2-4), Kaumana (3-2-3 & 3-2-5) and areas north of Hilo (Wailuku River to Hakalau) separately. I previously reported Hilo number as a single total. This approach tends to segregate the most active portions of Hilo. Still major differences can be found between property types, especially in N Hilo.

Interestingly, there were 66 sales in the entire Hilo market during the third quarter. This is a significant increase over the 1st quarter 2011 when 49 homes changed hands. The median price dropped only slightly (less than 1%).

Here’s a closer look at what’s trending in your neighborhood. Remember, these numbers represent a small slice of time and like Hilo, there are major differences in property types even within neighborhoods. Sales can range from oceanfront to modest dwellings in the same subdivision.

Price declines, especially in Puna, are often artificially affected by foreclosed properties in poor condition and sometimes not even incomplete. The number in parenthesis following the sold for the current quarter represents the number of sales for the year. Comparing this number to the number of active listings (noted after the area) gives a rough indication of supply and demand. Take the number sold, divide by 3, multiply by 4 and compare that total to the number active.

Unfortunately, our Multiple Listing Service is not reporting modes for all areas. This would give a clearer idea the price at which most buyers are buying. Keep in mind that the median sold price is heavily affected by the number and prices of foreclosed properties. If you don’t see your neighborhood, just give us a call. We’ll be happy to provide the information you need.

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

The Recovery

Real Support — Sat, 08 Oct 2011 01:15:00 GMT

In June 2010, our world turned upside down. When our totally healthy, fun-loving Mother suffered a massive stroke, the term recovery became very personal. With no family history, her second stroke in November left us scratching our heads. Trust me, my family has learned a great deal about strokes. We are still living “recovery”. My personal request to everyone is that you learn the symptoms of a stroke. A life can be saved or symptoms reversed by remembering the simple mnemonic device S-T-R (first 3 letters of stroke; smile, talk, raise arms). Confusion, a sudden headache, loss of balance, “blabbering”, or repetitive motions (to name a few), can signal a stroke. The inability to smile (or a noticeably lop-sided smile) when requested isn’t a good thing. Incoherent speech (talk) is a very strong indicator that something is going on. When a person is unable to raise their arms (or even one arm), something may be amiss.

There are two types of stroke. One involves a clot, the other a hemorrhage which floods the brain. Each manifests differently. As we say in real estate, “time is of the essence”. Patients seen quickly often recover fully. When Minima was in rehab, there were people of all ages and all walks of life recovering from stokes. Minima could not walk, talk, stand, or eat following her stroke. Rehab was amazing. While she is certainly not as good as new, we are happy to report that she has come a long way and is now visiting me in Hilo on the promise that she learns hula, walks when I run and works on her tan.

Like Minima, East Hawaii real estate appears to be on the rebound. Almost all East Hawaii neighborhoods seem to be recovering noticeably. Previously, the Keaau-Volcano corridor was languishing badly. There are still a few pockets where supply still outpaces demand (most notably Volcano Golf Course) but supply and demand are at least even in most areas. Prices are still stumbling (slightly) but once demand exceeds supply, this too will reverse itself. Current numbers may be artificially affected by Act 48 which passed earlier this year. This bill stalled many foreclosure listings for at least a year. When you look at next week’s update, it will be apparent that the least expensive properties (often foreclosures) are very popular. It remains to be seen if a new wave of foreclosures will once again upset the delicate balance of our current recovery process.

There are great values in the market and interest rates are so low that buying now makes a great deal of sense. One thing I’ve learned over the past few years, recovery is slow and can be painful. So goes the housing market, so goes the economy. At least for now, Minima and the East Hawaii housing market are both moving in the right direction. Look for next week’s update. Call me any time to learn what’s happening in your neighborhood and when you see Minima around Hilo, please give her your Aloha! For over 25 years, I’ve been trying to explain that “Aloha” thing to her. I’m happy she will be here long enough this trip to experience it herself!

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

My Friend Wants To Buy My House….

Real Support — Sat, 01 Oct 2011 01:51:00 GMT

When your guests visit, they always sing high praises for your house. In fact, one couple loves it so much that they’re emphatic about wanting first crack at if you ever decide to sell. Naturally, they are so impressed with the house that you don’t expect them to quibble about the price. ….that is, if you EVER decide to sell. You aren’t surprised. After all, you have put lots of love into your home and as far as you are concerned it’s perfect. It should fetch top dollar even in today’s market. Trust me, I know the entire conversation by heart! Unfortunately, when the time comes to step up to the plate, most who expressed interest aren’t as sincere or as capable as the seller hoped.

With visions of saving commissions dancing in their heads, sellers often want to delay listing until the prospective buyers make their final buying decision. Because this day may never come, it’s good to know there’s a reasonable solution that will allow the property to be listed while at the same time preserving the right to sell to someone who expressed interest prior to listing. In other words, there is a simple way to have the best of both worlds. After all, keeping the property off the market when you really need to sell isn’t the best way to move toward your selling goal. While our standard listing agreement isn’t structured to make such an accommodation, sellers can usually request that their agent include a specific prospect as an “exclusion” to the listing agreement. Simply inserting the prospect name as a special term which notes that “no commissions (or reduced commissions) will be due if sold to “x”, should be enough. But don’t expect the exclusion period to last forever.

Because I start spending money the minute a listing is signed, I generally limit the exclusion period to not more than 60 days. This should be ample time for a potential buyer to decide if they want to move forward. In fact, knowing the property is listed on the open market should actually motivate them to perform. Also, a notation should be made in the Multiple Listing Service that there are parties excluded on the listing agreement. Cooperating agents should know that commissions won’t be paid for designated buyers. After all, your “friend” is probably looking at other properties with an agent while they are considering yours.

But here’s the thing, even (or especially) in today’s market, finding the buyer is still the easy part. The things that must happen to hold a transaction together once a buyer decides to commit have certainly not gotten easier. Loans have gotten so complicated that choosing the proper loan program and lender from the get-go could make or break the transaction. Even cash purchases can have major challenges. When roadblocks appear, sellers don’t hesitate to call their agents for advice. They forget that answering seemingly innocent questions could establish an agency issue and create liability for the agent. Agents must be very cautious about how involved they become when they represent neither buyer nor seller. Still, excluding specific buyers is the most reasonable way to begin marketing the home while waiting for them to make their purchasing decision. After all, if the property is not on the market, your friend is basically the only one who CAN buy your house…. no one else will even know you decided to sell!

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.

Scary Assistance!

Real Support — Sat, 24 Sep 2011 01:05:00 GMT

Even in today’s buyer’s market, finding a buyer is the easy part. Positioning a property to assure that a buyer steps up to the plate can be critical. Establishing the proper price point, investigating permits, providing disclosure advice, evaluating planning, title and survey issues as well as determining highest and best use of the property are but a few of the pre-listing subjects that arise. Proper pricing and effective marketing quickly bring REALTORS® to the point where they really begin earning their money.

REALTORS® assist with negotiations, provide advice regarding the nuances of the contract, assure that buyers are qualified to proceed and trouble-shoot the transaction through to closing. Each transaction is completely different. Watch this. This week alone, I’m juggling an access issue, tracking down documentation for a corporate sale, untangling a probate problem with an out-of-state owner while at the same time dealing with the more common problems related to termite inspections, surveys, title problems, easements, setback violations, permitting problems, settlement statement accuracy, closing dates and property inspections to name a few. It’s no surprise then that when it comes time to show a listing represented by a discount broker, a limited service broker or for-sale-by-owner, extra caution is required. Without another full-service agent involved, the work load and liability for the transaction lies squarely on the lone full-service agent.

Performance of pre-listing tasks by discount brokers is normally non-existent. Also absent are critical double-checks which insure the seller is making full and accurate disclosures; permits are difficult to validate and fair housing compliance is not guaranteed. When agents are put in the position of working directly with a seller who is self-represented, we must be careful about providing advice, otherwise we risk becoming an “accidental” dual-agent. This sometimes alienates sellers who may get the impression that we are being less than cooperative. Additionally, agents involved in such transactions often lack assurance of compensation for their professional services. Most buyers these days still work with a committed agent with whom they have an established relationship. They understand the nuances of buying property in Hawaii mean that purchasing without competent representation can be very scary. Buyers and sellers deserve full and complete representation. Any arrangement which provides less is really unacceptable especially given the size and gravity of the transaction!

Team Nakanishi
Hilo, HI Real Estate
Hilo, HI Community Information
www.HawaiianRealty.com
Team Nakanishi, Proudly providing superior real estate services to Hilo, Hi.