Denise Nakanishi

Feeling the Pain in East Hawaii??

Real Support — Fri, 05 Mar 2010 20:02:00 GMT

Pretty disturbing information in last week’s “homework” video, right?   Even though I have no way to verify the information, it seems to offer a plausible explanation for the low percentage of completed loan modifications. If you missed it, go to my blog at www.hawaiianrealty.com, my Twitter or the Team Nakanishi Facebook page.

The video infers that the investors, in this case, One West Bank, have little motivation to modify loans.   It exemplifies how short sales and foreclosures can be an important profit center.   Just yesterday, I closed a year-old short sale and while my business does not rely heavily on foreclosure listings, it’s unavoidable business.

While untangling the problems underlying short sales and/or foreclosures is far above my pay grade, even Beetle Bailey could figure out that the system has serious problems. It’s so bad that the standard joke about short sales is that the first question to ask after submitting the 50 to 100 sheet short sale packet is whether or not the loss mitigators have lost the packet yet! Truth is, if they don’t receive one of the required pages, they simply file-13 the entire packet! Even worse, if you don’t close on time, your entire application is subject to cancellation…even if it’s the lender’s fault, which it normally is.

When it comes to foreclosures, there are as many war stories as there are properties. Here’s the curiosity. Most are processed by asset management companies. These companies aren’t necessarily associated with the lender. In fact, they often have no idea who owns the loan. Lenders use asset management companies not only to help manage the workload but more significantly, as a place to “house” non-performing inventory. Such asset shifting takes the inventory off their books.

Working with these third party vendors can be a great source of frustration.   The asset managers are rarely in Hawaii and they know little about listing and selling in Hawaii. Their workflow is processed on-line in a very mechanical manner. Trying to interact directly with an asset manager is next to impossible.   Sometimes, they don’t yet have title to the property and still they insist we hurry to list it….which of course, we can’t. Unfortunately, we are “scored” on how quickly our tasks are handled. Slow performance affects future assignments. Not the best business relationship.

Here’s specifics regarding how our East Hawaii market has been impacted by residential REO (foreclosures) and short sale properties (note that several contingent REO properties have been in escrow for an extended period; the lender isn’t able to close) :

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

Foreclosure Homework

Real Support — Fri, 26 Feb 2010 21:33:00 GMT

Foreclosure auctions can be a terrific place to pick up bargains, right? Like my attorney friends always say, it depends. Only recently have foreclosure notices become common in our Hilo newspaper. It’s a dubious honor that we have gone from dead last in the number or foreclosures to currently nesting among the top third in the nation.

Foreclosure notices designate dates when the property will be held “open” for inspection as well as a date for the scheduled auction. The lender’s representative will always attend the auction. They will always overbid anyone who bids below a predetermined price. Most times they will “buy” the property back by bidding as much as their credit letter allows. This letter represents the amount they have into the property, however, they are unlikely to bid more than any opinion of value that has been prepared for them. The foreclosed property is normally re-marketed with a REALTOR®. For this reason, it may be possible to get a fair price at auction but it may not be a “steal”.

There are things to remember and stats to consider. First, not every home will be held open and if an open house actually happens, it offers only a cursory opportunity to view the home before the auction. There is no owner’s disclosure so learning the true condition of the property can be a challenge. Successful bids often go to a confirmation hearing at which time bidding can be re-opened. Any money spent on inspections and financing will be put in jeopardy. Properties are always conveyed “as is” even if the condition changed since the auction. There may be no outs, even for vandalism.

One of the most common reasons to forego an open house, of course, is that the property is still occupied. It’s normally up to new owners to clear the property. Time was in Hawaii when foreclosed properties were considered to have the “cleanest” title. Two things changed this. Mergers and dissolutions of original mortgage lenders required complicated agreements. Sadly, flaws in the pooling and servicing agreements have indefinitely delayed closing in (especially) land court.

In situations where a property was foreclosed through a non-judicial foreclosure (no judge is involved), when an owner signs the property back to the bank (deed-in-lieu) or when an owner mails the keys back to the lender (jingle mail), title companies become so concerned about off record claims that they normally refuse to issue a title policy. Conditions for issuance of a title policy normally involve the assistance of the foreclosed owner. Good luck with that one. No title insurance, no loan, no sale.

So, how bad is the situation in East Hawaii? That’s my homework for next time. In the meantime, here’s yours. Go to my blog at either www.majormom.com, the Team Nakanishi Fan Page or Twitter where you should watch this video. After that, watch this one. The last one’s just for fun. Trust me, you’ll need it after you watch the homework video!

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

When It’s Time To Take A Hike!

Real Support — Fri, 19 Feb 2010 14:48:00 GMT

The standard provisions of our listing agreement obligate the seller to help sell the property not only in a general sense, but specifically by preparing the home for showings, allowing access for required inspections, securing belongings and allowing a lockbox to be installed. While we encourage seller assistance and cooperation, it’s sometimes counter-productive for sellers to actually walk potential buyers through the property. Here’s why. I spend a good amount of time with buyers prior to showings. Discovering their preferences is a large part of my preparation. While a house with a steep driveway may be a problem for one buyer, it may excite another with a teen-aged skateboarder. Buyers see features differently. An astute agent will be able to direct the buyer’s focus to the features that interest them. It’s understandably difficult for sellers to stand-by and let the agent direct the showing especially if the agent has never visited the property. Remember, a buyer probably does not need to initially consider every feature of the house. They only need to get a general sense of the property.

Of all the reasons a seller may wish to leave the property during showings, none is more important than avoiding what could be the basis for an awkward relationship later on. Often an innocent inquiry escalates into negotiations or worse; it opens the door to a casual friendship that may easily be side-tracked. Here’s a classic example. Buyer stops by occasionally. Eventually Buyer asks Seller’s permission to start making repairs to a vacant home. Closing is delayed. Buyer continues working, each day more vigorously. Repairs are now major. Just before closing, the lender re-verifies employment and discovers buyer no longer has a job, hence, no longer qualifies for a loan! Get the picture? It tough for a seller who has become friendly with the buyer to refuse their requests. This situation would likely never have developed had Seller not been around during the initial showing.

So, while I dearly love all my Sellers, this is one situation where I have to ask them nicely to “take a hike”!

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

To Market, To Market!!

Real Support — Fri, 12 Feb 2010 15:11:00 GMT

“You’ll wonder where the yellow went!” “See the USA in a Chevrolet!” “Double your pleasure, double your fun!” …… When that Chevy sat on top of that mountain every Sunday night, we remembered. Those twins put Doublemint gum on the map and I’m not even sure Pepsodent is still in production but I certainly recall their slogan more than 40 years later! Messages repeated again and again, stick. Studies tell us that it takes a minimum of 7 impressions to cause an impact. With a direct mail campaign, for instance, we know that if we aren’t willing to mail at least 7 pieces within a short period, we may as well not send any at all. But is advertising the same as marketing and if not, at what point does advertising stop and marketing begin? In simplest terms, advertising is a basic component of marketing. Marketing really refers to a systematic plan that incorporates various forms of advertising (print, photos, radio, direct mail, internet) along with other forms of exposure. The goal of both, of course, is to reach a desired sales goal. In my mind, successful marketing is as much a function of quality as quantity. The most effective ads help move the buyer mentally into the property. Anyone can compose a sterile ad with a list of features but good advertising evokes emotion. The more advertising touches the needs and desires of the buyer, the higher the probability the Realtors® phone will ring.

After all, when it comes to real estate, causing the phone to ring is really the goal; nothing more, nothing less. Whether it’s photos, text or something as simple as sign placement, I spend a good deal of time capturing the essence of what’s special about a property. It really pays off. That’s the quality part. Coupled with the quantity created through an aggressive marketing effort, a well-priced product should sell. The tough part is that any component of the marketing plan can be critical. The open houses, social networking, board caravans, broad web presence, property brochures even the accessibility of the agent and the person answering the phone at the office all weave together to become part of the plan for marketing the property; the marketing plan. In a broad sense, it’s a plan for addressing the real task of capturing buyers by systematically implementing specific components of the plan.

If it’s true that “when you fail to plan, you plan to fail” then the plan for marketing the property creates a road map to success. So when you decide to go “to market”, look for a plan. Because, after all, without a plan everything else is just advertising!

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

The "Super Bowl" of Transactions

Real Support — Fri, 05 Feb 2010 14:53:00 GMT

Nothing is more American than the spirit of self-reliance but trying to quarterback the largest transaction of your life can actually find

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 the State owner-builder regulations.

Buyers are looking for sellers representing themselves because they generally feel it’s a good way to get a bargain basement price. 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 they 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, Produly providing superior real estate services to Hilo, Hi.

Smart Ethics

Real Support — Fri, 29 Jan 2010 16:50:00 GMT

The smartest woman in the world may be the former Senator from New York but there’s no question in my mind that the smartest man is indeed a Hilo boy. It’s not our Mayor, Uncle Steamy or even my honey (indeed a genius for having married yours truly). Nope, smart as they are, in my book, none competes with now retired custodian Al Estabilio.

When Hilo High was stymied as to how to keep kids from hanging around outside during dances, it was Al’s common sense suggestion that led to simply turning on the water sprinklers! When no deterrent to girls leaving lip prints on bathroom mirrors could be found, Al’s demonstration of his cleaning methods using only a squeegee and a good dose of toilet water broke the cycle! Sometimes we get so caught up in the problem that we loose sight of the obvious. And so it is with real estate.

Prior to license renewal every other year, Realtors® must complete 10 hours of continuing education. A recent requirement added formal ethics training. Most commonly ethics disputes among agents surround representation. Competing agents claim to either have been the procuring cause on a purchase or to be the chosen representative of a buyer. The agent writing the contract is generally assumed to have introduced the property to the buyer. When this is not the case, an ethics complaint might arise. Agents are not supposed to involve buyers and sellers in commission disputes. Most agents happily respect established relationships. In fact, you should be hesitant to work with an agent who “forgets” to ask if you are working with another agent. Even today, most experienced agents have more business than they can handle.

One hypothetical used in an ethics class I attended dealt with procedures an agent should follow when another agent’s buyer wanders into an open house. The buyer wanted to buy the house but their agent was out of town. Solutions suggested by agents attending the class varied. I personally favored allowing a buyer to proceed with their purchase while maintaining the relationship they have with their agent even if the agent never showed the property. Common sense and common courtesy, right?

The fact that our National association feels we need such reminders is a bit disconcerting. While useful, it took a four hour continuing education class to convey what, if asked, Al could have conveyed in two shakes; just follow the Golden Rule! It’s like I told you, the man is a genius!

Arnold the Pig will not Convey

Real Support — Fri, 22 Jan 2010 14:51:00 GMT

We love our pets. Pets help make a house a home. Pet issues require special considerations when selling your home. Cats, for instance, are a common source of allergens. Some people react violently to them. Buyers sometimes refuse to view a home with cats inside. Pet smells can be offensive. Litter boxes, cat spray, dog urine, bird cages, or guinea pig smells can be a real turn off to a buyer who might otherwise love your home. Dogs and geese make huge muddy messes in yards and on porches. It takes little encouragement to arouse every rooster and dog in the neighborhood. Dog smells, even outside, can leave a lasting impression. An unfriendly 130 lb. canine “greeter” will distract any buyer. A friendly puppy who sits on your feet every step can monopolize the buyer’s attention. Here are a few tips that may help. I’m told urine smells in the carpeting can be neutralized by using a diluted solution of porta-potty deodorizer.

There are also new commercial applications available at carpet stores. Keep outdoor animals confined to an area away from the house for a period of time before you put the house on the market. Give the lawn time to mend before showings begin.

Buyers should be able to stroll leisurely to the door and around the yard without fear of stepping in something. They need to be able to look at the property not down at the ground. When possible, schedule showings when you can take Rover for a walk. If Miss Kitty must be in the house, inform the showing agent ahead of time. Clean pet bedding, litter boxes, and cages before every showing. When possible, remove pets from the home altogether. Even if the new owners move in with Arnold Ziffel, your property should smell as fresh as a maile lei and look as much as possible like Lisa Douglas’ house when potential buyers comes to visit. Click here for information about selling your home with pets!

Trust me, the extra effort that will pay big dividends.

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

Maybe the Sky Really Isn't Falling!

Real Support — Fri, 15 Jan 2010 16:16:00 GMT

Suffice it to say that 2009 will not be remembered as a banner year in real estate but as bad as it seems, it’s important to remember that we came a long way before we started to retreat. Watch this. The median sales price islandwide at the end of the year 2000 was $175,000. There were 101 residential sales on the entire island that year.

Now watch. The median price of a home in Hilo at that time was $145,000. Only 9, yep 9, homes sold that year (down from 19 in 1999). Not surprisingly, the median price in Puna was a little above $67,000. Even if we fast forward, we still find homes selling for more now than they did in 2004. It’s good to keep life in perspective. Sales activity for 2009 was up 8% over 2008 and while sales prices dropped 19% from the previous year, it’s important to keep in mind that the island-wide 2008 median pricing is still close to par with 2005 pricing.

Of course, many segments have been severely affected but numbers don’t always tell a complete story. It’s difficult to say how much the (in my opinion unnecessary) exclusion of loan programs in lava zones 1&2 has affected market recovery in lower Puna and Ocean View but the compound effect of negative press surrounding this issue can certainly not be denied.

Sometimes numbers are all we have, so here they are:

Inventory levels are still declining and sales are hovering around 120 per month island-wide. By historical measures, we are doing pretty well. For certain, current numbers are way ahead of where we began this decade which might mean that the sky isn’t falling after all!

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

Mother and Daughter Team Named REALTOR® of the Year

Real Support — Thu, 14 Jan 2010 20:54:00 GMT

While working as a team is a common business practice in real estate, Mother-Daughter teams are rare. Denise Nakanishi and Mealoha Kraus are breaking new ground in Hawaiian Real Estate. In fact, this is the first Mother-Daughter team to be honored by the Hawaii Island Board of REALTORS® (HIBR) as their choice for REALTOR® of The Year.

Nominations for this prestigious award are submitted by fellow REALTORS® based on service to others and a commitment to qualities which promote a positive REALTOR® image. Final selection is made by a committee of previous winners. HIBR could not have made a better choice than Team Nakanishi. There is no doubt that Denise and Mealoha are committed to serving their community while promoting the strict code of conduct to which REALTORS® must subscribe.

Competition for this prestigious award is always competitive according to Denise who reports this was at least her 4th nomination. A local top producing agent, Denise Nakanishi is knocking at the door of the Prudential Legends Award having been placed among the top 3% of Prudential’s 50,000 agents nationwide for several years. She knows it’s impossible to attend to all the details alone so once daughter Mealoha graduated from the University of Hawaii at Hilo, Denise convinced her to put her enthusiasm, insight, knowledge and technical expertise to work. This was the first phase in the evolution of East Hawaii’s first full-time real estate team.

Always seeking new and innovative ways to provide the highest standard of service to their clients, Team Nakanishi has, for years, embraced the evolution of the on-line marketplace. The newest members of their real estate team are dedicated exclusively to providing technical tools and support which will complete the transformation of their business from a static print based format to a dynamic internet based platform. This will allow them to easily adjust their marketing efforts to the demands of today’s consumer.

Their dedication to their business is balanced by a deep commitment to years of community service. This has not gone unnoticed by their colleagues as congratulations poured in from co-workers and clients alike.

Their reaction to the win according to Mealoha was “Shock, honor, surprise and smiling so big you couldn’t even see our eyes”! Congratulations Team Nakanishi!

Team Nakanishi serves the East Hawaii real estate market including the surrounding areas of Hilo and Puna. Whether you are considering buying or selling, they know the area inside and out! They can be reached at 808-854-1570, by email at TeamNakanishi@RealEstateHawaii.com or on-line at http://www.majormom.com.

Holiday Hangovers!!

Real Support — Fri, 08 Jan 2010 16:33:00 GMT

Are your credit cards tired, overworked and underpaid? Do you suffer from extreme mailbox avoidance syndrome? Indeed, it sounds like a typical case of holiday hangover! It’s a common malady associated with the reality of “shop ‘til you drop” overspending resulting from hard-to-resist holiday generosity.
Problem is, many look for temporary relief by delaying the largest bill they have; their mortgage payment. Because it’s the biggest, it’s also the hardest to catch-up. It’s important to be forthcoming with your lender when situations get out-of hand.

While collectors are normally over-aggressive (many get paid for each payment they collect), keep in mind that the lender wants to be sure you do not default. Tell the Collector that you want to speak to the Loss Mitigation (or Home Retention) Department. Their job is to assist borrowers in restructuring debt which helps reduce default rates keeping losses to a minimum. Working with them early on insures the largest menu of options is available.

Choices could include a rate reduction which actually reduces your interest rate for the remainder of the mortgage, recasting the payments by re-computing payments to include any delinquency, extending the term of the loan allowing delinquent payments to be paid at the end, converting the type loan in order to reduce payments or allowing a one-time assumption of an otherwise non-assumable loan. Your willingness to cooperate coupled with your individual circumstance will largely dictate your choices.

If the situation seems hopeless, options such as a deed-in-lieu allow your interest in the property to revert to the lender. The property can be sold avoiding an expensive and time-consuming foreclosure proceeding. You may even be able to stay in the home if you list the property as part of a pre-foreclosure sale. When you owe more than the property is worth, the lender may actually forgive part of the debt allowing a short-sale to proceed.

Remember, there may be tax or collection consequences which apply to your situation. Be sure to consult your tax advisor or legal counsel before considering a short sale or voluntary foreclosure. So, if you find yourself suffering from Holiday Hangover, take two aspirin and call the Lender in the morning. It may be just what the Mortgage Doctor ordered!

Blog forward each week at www.majormom.com!

Charles In Charge

Real Support — Wed, 30 Dec 2009 22:02:00 GMT

…..Or if you work at my office, Bob is in charge. He is our Principal Broker. Public perception is that the Broker makes lots of money for just allowing a bunch of agents to work out of their office. I’m often asked why I don’t open my own office. Truth is, salespeople generally have pretty big egos, are set in their ways, love attention and they really don’t want to be supervised anyway.

When it comes to real estate, some agents are extremely competent, while others need constant supervision. Here’s the thing, state law makes the Principal Broker responsible for all actions of the agents working under their supervision. Some offices recruit any agent with a license while others prefer to recruit proven talent. Of course, with so many things going on between sale and closing it takes sound office procedures to insure things are done according to law and office policy.

The biggest issue usually relates to reviewing contracts. Some offices allow a buyer or seller to sign a contract prior to Broker review, others do not. Some do a cursory review or even review contracts over the phone. For “one man shops”, the same person writes and then reviews the contract. My first principal broker lived in Waikoloa and required us to drive the contracts to him for review. In those days fax machines were rare but even for experienced agents, a second set of eyes is critical.

Because principal brokers usually own the brokerage firm, they provide office space, utilities and basic office equipment such as a copy machine, office furniture and phone system. There is significant expense in owning a real estate brokerage firm. So how is it that a principal broker gets “rich”? There are basically 2 models for compensation. Some offices split commissions with the agents. Newer agents start some place around a 50-50 split. The Broker normally takes less from an experienced or productive agent. Other offices pay 100% to the agent and charge a fee for office space and support.

The real issue, of course, is why the public should care. From a marketing perspective, sellers have to consider the marketing plan and how the business model of the office supports getting their property sold. One of the most important responsibilities of the principal broker is training and education. Much of this effort flows through the principal broker. A good indication of supervisory success is the lack of complaints filed with the Dept of Commerce and Consumer Affairs and the Board of REALTORS®. Because the principal broker is responsible for everything that happens in their office, they are named in any complaint.

It’s not a stretch to understand that there’s a direct relationship between supervision, education and performance. Recommendations of previous clients are a good indication of job performance. Ask the agent to share the production numbers for both them and their office. Busy agents gain valuable experience with each transaction. Consider the length of time the office has been in business. Agents, offices and principal brokers are not created equal. Choosing yours carefully can make all the difference…as for me, I’m just thankful Bob is in charge!

A Simple Concept

Real Support — Wed, 23 Dec 2009 16:10:00 GMT

Whether on-line or in print, real estate ads are subject to a couple of sets of regulations. Disclosing the “value” of an estate is fairly unique to Hawaii. Until a few years ago, designation of an estate quality as either “fee simple” (FS) or “leasehold” (LH) was required on all forms of advertisement. While leasehold ownership must still be specifically noted, properties not so designated are now assumed to be fee simple. Because the concept of leasehold ownership is fairly unique, it should be no surprise that people always question the distinction between the two. In most basic terms, fee simple means you own the property. As the name implies, Leasehold properties include a lease as part of the conveyance (transfer).

There are various forms of leases. Every lease is different. Conveyance of a leasehold property may include not only a transfer but a possible renegotiation of the ground lease as well. Additionally, leasehold conveyances involve both a lease transfer and a conveyance of the real property interests. Sales of leasehold properties are much more involved than fee simple transfers.

Disclosures are much more involved. Leasehold properties in East Hawaii are basically limited to Hawaiian Homes, condo units along Banyan Drive and homes along Oceanview Drive. There may be a few remaining leasehold condos in Hale Moana as well. A common belief is that leasehold properties belong to either the State or one of the large estates such as Bishop Estate. In Fact, churches and individual families own many. For this reason, from time-to-time, a leasehold home will pop up in a residential neighborhood.

As relates to ownership, property is always conveyed along with a “bundle of rights” regarded as the ownership “estate”. Fee simple ownership encompasses the largest bundle of rights available. It is generally assumed that fee simple ownership rights include the right to use the property for any legal purpose not otherwise limited by deed or subdivision restrictions. Fee simple ownership exists indefinitely. Leasehold estates have a definite duration. While the ownership concepts are simple, the details of any property transfer are not. Understanding the differences is key to choosing not only the property but also the agent who will help guide you through this not so simple process!

'Twas the Night Before Listing!

Real Support — Fri, 18 Dec 2009 15:40:00 GMT

“Twas the night before Christmas, when all thru the house, Papa was searching on-line with his mouse.

This year it was different than in the past; this time he was looking at how to list and sell fast!

The Buyers were nestled all snug in their beds, while visions of palm trees swayed in their heads.

The REALTORS® were stressing because they all knew, buyers were out there; just not yet in view.

When out on the lawn there arose such a clatter, our Papa sprang up to see what was the matter.

Away at the window we saw right at dawn, our freckle-faced REALTOR® pulled up on the lawn!

The bright-eyed reflection on that confident face, gave a luster of knowledge we couldn’t erase!

When what to our wondering ears did we hear, great reasons for selling at this time of year!

Good buyers, not lookers, cold weather over there; some who must purchase in this tax year!

To take time to look instead of just tanning, shows serious intent to be here for buyin’

And then, in a twinkle, Papa heard loud and clear, that buyers are serious at this time of year!

With sellers quite busy and delaying their listing, new inventory is flat, another real blessing!

The REALTOR®, though chubby and freckled of face, had Papa on task in record pace!

And we heard her exclaim ‘ere she drove out of sight, “Happy Christmas to all, I’ll find a buyer by Night!”

Mahalo for trusting us both with your real estate needs!

Your support has been invaluable in helping us be selected as the Hawaii Island Board of Realtors 2009 Realtors of the Year!

Here Comes Santa Claus

Real Support — Fri, 11 Dec 2009 20:32:00 GMT

For the ninth month in a row, the number of pending sales nationwide is up. In fact, there were 66% more residential sales on our island this November over last. Even vacant land sales were up last month. While the median price island-wide rose slightly last month, many areas of Hawaii Island are still experiencing downward pressure on pricing.

No conversation about the catalyst for the increase in market activity would be complete without including the first-time homebuyers tax credit. Originally set to expire on November 30th, the credit was not only extended but has been enhanced to include a significant credit for current homeowners as well. Of course, no government give-away would be complete without a couple dozen caveats so here’s some to get you started…

There are many idiosyncrasies so be sure to consult your tax adviser.

Neither credit applies to purchases over $800,000.

Income limits apply to both programs.

Single buyers cannot make more than $125,000 and married couples must not make more than $220,000. This is actually an increase over the previous program which capped income at $75,000 and $150,000.

Partial credit is available until earnings exceed $145,000 and $245,000 respectively.

Remember, a first time homebuyer is defined as anyone who has not owned a home in the past 3 years. For married couples, this applies to either spouse.

In order to qualify for the $6500 credit, existing homeowners must have lived in their current home for five consecutive years out of the last eight. The home can either be sold or vacated which seems to indicate that changing use to rental is acceptable. The program is set to expire on April 30th but as long as the contract is in effect on April 30th, closing can occur as late as July 1st.

Any credit is subject to re-capture if the home is sold within three years of purchase.

The sales price must be at least $80,000 to receive full credit.

The beauty of the “credit” is that it directly offsets taxes due. The remaining portion, if any, is sent directly to the purchaser… This means that one of Santa’s helpers could be delivering a belated Christmas present to almost anyone who purchases a home by the end of April!

But is the credit really responsible for market improvement? Other factors such as incredibly low interest rates and less “Eeyore talk” (less negative talk) could also be impacting sales numbers. If the tax credit is indeed fueling a housing turn-around we should see closed sales drop off sharply between mid-to-end January. This would have been the time during which buyers no longer expected to receive the original credit but decided to purchase anyway. If these numbers don’t fall significantly, it could be a real sign that we have, in fact, entered a period of recovery. So whether you are thinking of buying a ho-ho-home, keeping your eye on the market, or just watching the calendar, it’s probably time to get ready because after what’s been a very long year for us all, it seems that at last Here Comes Santa Claus!

Listing Your Home? Don’t Deck The Halls Just Yet!

Real Support — Fri, 04 Dec 2009 21:12:00 GMT

While listing your home during the holidays can result in serious showings there may be a few extra things to consider. The commercialization of Christmas has moved the seasonal calendar back each year. Homes are decked out even before Thanksgiving.

The sense of home created by holiday decorations may be great for a showings but be careful, too much of a good thing can transform your living spaces from comfortable to cozy. Cozy may sell in a ski resort but it’s not necessarily what Hawaii buyers are looking for. Over decorating can also make a huge difference to the on-line presence. Remember, well over 80% of buyers are now starting their search on-line.

Like a house where a seller has too much “stuff”, decorations can make it difficult for a buyer to get a sense of the property. I speak from personal experience. I once listed our home right before Christmas. From the looks of the photos, I was following the “more is better” school of decorating. The photos looked great. Trouble was, they were more appropriate for a Lillian Vernon Catalog than a house ad.

I quickly realized that it was a mistake to have taken photos which included holiday decorations. One of the biggest benefits of the internet is that buyers arrive armed with much more information than those searching in a conventional fashion. Buyers, even local ones, want to make the most of their time; they are excited about the task at hand. They study on-line photos for even the smallest details in advance. Too much holiday cheer cluttering the photo really hinders their efforts. In the best of circumstances, too much stuff tends to weigh down the home.

Unfortunately, more often than not, holiday decorations in ad photos give the perception that the home has been listed since the previous year! When photos are left on-line after the holidays, it may help to add the year to the photo captions but it’s really best to have the photos re-taken once decorations are remove.

As I mentioned, selling at Christmas can be a great idea. Christmas showings can evoke an important sense of nostalgia but it may be wise focus less on Decking the Hall and more on having yourself a Merry LITTLE Christmas. After all, a sold home could have you singing Joy to the World even before New Year’s rolls around!