What's Happening in Hawaii

It was in the newspaper today, Trulia's blog yesterday, and noted in the Honolulu Board of Realtors posted statistics on market conditions.  If you are anywhere on the mainland or on the islands - prices are going up.

With today's low interest rates and the shortage of inventory (yes. sellers are waiting as long as they can to come to market hoping for higher prices) the competition is fierce for properly priced homes.  In Kailua, Kaneohe, Hawaii Kai, Kahala and Waialae areas there are few short sales so the prices have remained steady through the latest recovery and are now rising  due to that shortage of inventory in the $650,000 to $1,200,000 range.

In Leeward and the Ewa Plain areas there are still Oahu's preponderance of short sales and foreclosures.  That pressure has slowed price increases but they are starting to rise.  The only question is will the change in the foreclosure laws under review by the legislature increase the foreclosed homes brought to market or not.  That would have an effect of dampening a rise in prices.

So for now, keep an eye on the market and closed sales. Watch current rental values, as they rise so does the demand for home ownership - both by investors who can get a positive cash flow, and by home buyers for whom rent is now more expensive than buying.

Call today for help in finding great value homes - short sales, investment, second or vacation homes, any type of residential property - we have the market knowledge you need.  Kate Braden (B) R PB 808-265-6803

Many people are wondering what happened with Hawaii's non-judicial foreclosure law Act48?  The short answer is NOTHING! It is unfortunate that a year has passed and there is still no headway.  However, there still is hope. According to the Star Advertiser in today's paper, there is a new bill to be voted on, HB 1875.  In a nut shell, this bill would make the mediation program a permanent thing.  The only question here is will the lenders be willing to participate or will they just stand in line with everyone else and just go the judicial route?  My thoughts are that the lenders do not want to expose themselves to any liability and will not participate.  First off, so many of the loans have been sold over and over again and the lender now holding the mortgage may have little or no idea what the lenders before them have done.  I'm sure that everyone will play it safe and either short sale their properties or wait in the long and over crowded line at the court house.  

Another thing are the short sales.  If HB 1875 passes, I expect to see a lot more lenders taking their properties to short sales.  This will allow them to avoid the cost and time it would take to foreclose, not to mention that once they forclose then they still have to get rid of the property.  Does that mean we will see a lot more short sales in the future?  My guess is YES. So, the question goes out to all those buyers who want to get good deals...you may see more short sales and opportunities in the near future.

If you want short sales and other good deals, Take a look at these great places – Aiea, Diamond Head, Ewa Beach, Haleiwa, Hauula, Hawaii Kai, Honolulu, Kaaawa, Kahuku, Kailua, Kaneohe, Kapolei, Laie, Lanikai,Mililani, Pearl City, Wahiawa, Waialae Iki, Waialua, Waianae, Waikiki, Waimanalo, Waipahu

If you want to talk to a great short sale specialist, then call me anytime and I'll talk to you about how to get going on buying a short sale.  Allyson Blackard R BIC 808-224-6624

Hawaii Real Estate Online LLC
Kate Braden, Principal Broker 

The Hawaii Housing Finance and Development Corporation announced on April 9th that the Hula Mae program has $43 million in funds for first time homebuyers who qualify.  The Hula Mae program offers a 30-year mortgage loan at a simple interest rate of 3.45% and a Down Payment Assistance option for up to 3% of the contract sales price at a simple interest rate of 3.80%. See Hula Mae Mortgage Loan Program FAQs to see if you are eligible.  Cut and paste this link if you have a problem seeing the other link: http://hawaii.gov/dbedt/hhfdc/HMFAQs.pdf.

The money is first come first served so it does run out so check if you can take advantage of this HHFDC program.  HHFDC is the State of Hawaii's premier housing finance and development agency - your one-stop shop for information about affordable housing development and state-sponsored homeownership initiatives.

Give us a call for more information on finding your first home in Kailua, Kaneohe, Mililani, Ewa, Haliewa, Pearl City, Kapolei, Kahala, Diamond Head, Waialae, Aina Haina, Honolulu, or any of the neighborhoods on Oahu.

Food Trucks Arise!!  After the lawmakers finally adjusted the law the food trucks are back without fear of fines that would put them out of business, the  Eat Out Kailua is back.  It will be held in Enchanted Lake Elementary's parking lot this Saturday from 4 to 8pm.  Foodies can enjoy street eats from Soul Patrol, Chicago Eatz, Cooking Fresh for You, and Shogunai Tacos.  Eat Out Kailua happens on the third Saturday each month.

It's time again for the 'I Love Kailua' town party sponsored by the Lanikai Outdoor Circle, starts at 11am on Sunday and ends around 4pm.  It's the 20th anniversary and the center of town will be filled with local merchant booths as well as dozens of eateries.  At the least come try out Pinky's Pupus, Tat's shaved ice, goodies form the new Whole Foods market, Baskin Robbins ice cream, Bob's pizza, Buzz's Original Steakhouse, Cinnamon's, and Los Garcia's Mexican specials and stay to say hello to your neighbors!

You can get buttons for the event for $3 at various locations in Kailua or just pay at the entrance.

Attention Beer lovers; two craft breweries are expanding and two new breweries are coming to town.  Maui Brewing is set to open a new brewpub in central or south Maui and Kona Brewing will add to it's Hawaii Kai, Oahu and Kona, Hawaii plans to open two new restaurants in Hawaii.  Currently it has breweries in Kona on the Big Island and inPortland OR, and two other mainland cities.

New breweries, Aloha Beer Co. and Kauai Island Brewery and Grill are coming into the market.  Aloha Beer will be taking over Sam Choy's Big Aloha Brewery and opening a new brewpub next to Sam Choy's Breakfast Lunch and Crab on Oahu.  Kauai Island Brewery will be opening on Kauai in May of this year.

Happy brewing .... and drinking real beer!

Give me a call if you want more information about Hawaii's neighborhoods and homes in Aiea, Diamond Head, Ewa Beach, Haleiwa, Hauula, Hawaii Kai,Honolulu, Kaaawa, Kahuku, Kailua, Kaneohe, Kapolei, Laie, Lanikai, Mililani, Pearl City, Wahiawa, Waialae Iki, Waialua, Waianae, Waikiki, Waimanalo, or Waipahu, Kate 808-265-6803

I love showing houses in bad weather.  In bright sunny weather with the new flowers in the front yard blooming, and the windows polished and shining you'll never see the puddling on the lanai that means you're going to have to spraywash several times a year to keep the moss and mildew from growing, or that the gutters don't drain properly, or that the downspouts put the water back toward the house.

Even a home inspection might not show small defects that during weather like we had last week, torrential rain, lightning, thunder and even hail; that would make you think twice about the price you are offering on a home.

You should always visit the home at night, Friday after work, Saturdays and Sundays, and especially in the middle of really bad weather.  The neighbors are as important as the flowers.

So be glad it's pouring when you visit that open house.  

What Do You Mean You’re Not Negotiating for Me?

With newly clarified rules, some larger brokerages may find their buyers in dual agency situations more often than not.  What’s dual agency, you ask?  Remember that paper you signed or the discussion we had about agency when we first started working together?  Of course you don’t, as the language Realtors® deal in can be very “legal-eze” and we all tend to “skip” hearing things we don’t want to hear and get on with what we want to do – get a good deal on buying or selling property.

In a nutshell, when you are working with a particular agent, you are a client of the agent’s brokerage as well as all the other agents in that brokerage.  The agency relationship is between you, the buyer or seller, and the agency/brokerage.  "Well, so what", you say.  

If you enter into a dual agency situation, your agent and all other agents in the brokerage go from treating you as a client;  owing you the highest duties, including confidentiality, loyalty, due care, and diligence (which includes negotiating the best deal for you and monitoring the process to insure you are always at the front of their actions) to treating you as a customer, where the agents must remain neutral in all negotiations and must not advance the interest of one party over the other.  You are now treated as a customer by the brokerage/agent. "Well, so what, my agent’s brokerage isn’t the same brokerage as the listing agent’s brokerage, so there’s no dual agency, right?", you say.

Sorry to say, buppie, you and your agent can be in a dual agency situation if ANY agent in their brokerage has a property listed that is similar to the property you are trying to purchase.  So the house across the street, or in the same neighborhood, and having similarities (that’s where it gets tricky and market knowledge is important) that is listed by another agent in your agent’s brokerage, means you are now in a dual agency situation and your agent “must remain neutral in all negotiations and must not advance the interest of one party over the other”.

You thought that big company had a benefit over others because they have so many listings.  As a buyer or a seller, you may have just signed up for dual agency and reduced the services your agent can provide.

#5 Not understanding more than P&I of a mortgage so you buy too much house.

In number four you can kill the deal, but there are several ways while buying a house, you can kill your credit.  Maybe not right away, but soon enough.  Those little mortgage calculaters on all those sites calculate what your monthly payment would be for a loan amount at a certain rate of interest.  Just the P&I - the principal (the amount you borrowed) and the interest you owe (on the amount you borrowed)

So the calculater tells you you can afford a $500,000 loan at 3.99 interest.  Whoo!!! but whoa.  Along with P&I is basic utilities, homeowners insurance, property taxes and in some places, other fees.  You'll need those estimates too.  And can you get a 3.99 interest loan? Or do other things such as the available cash for the deal not leave you enough to get that rate?  Plus there are costs to completing a purchase.  The costs are usually spelled out on the initial estimate along with estimated taxes, P&I, and other fees, but you'd have to go get estimates for insurance.  

So you've talked to a lender and given him your information (yes you pulled together actual paperwork so he can tell you for real what is possible) and he's told you the most you have to work with.  But just because you can, doesn't mean you should.  In addition, to complete the deal are you tapping every bit of cash reserves you have?  That can leave you mighty venerable in this uncertain world. If every dime of your income is going to pay for your home (P&I, Insurance, Taxes, Fees, and basic utilities) then you are going to start to feel pressured, and should the smallest thing happens ( the extra pay you were getting is cancelled, you got an early transfer, the water heater broke, the baby got sick, life), you my friend are up the creek without a paddle.  You'd end up starting on that deadly credit spiral downward killing your credit just to survive.

The investment in a home is the best longterm investment you can make.  It has been proven over and over, homeownership is the best way to build wealth and provide security for your family.  But let's be wise buyers and make sure it is a financial decision not an emotional one.  Carefully assess your monthly income and deduct those expenses that are necessary to the family's well-being, as well as the basics you have to pay out each month.  You don't need to eat out every night, but an occasional movie and a hamburger is  ok.  Determine the price range of the home you can afford - not the home that you could buy.

Plan ahead for unexpected salary changes or job transfers - some things we can't control but we can be prepared for.  Make sure your home is in a good area for quick rentals at prices that will cover most or all of your costs.  That way you can always rent it out until the market is at a place where you can sell and take your equity to your next home investment.

So let's skip that home you could buy and look for that home you should buy in Aiea, Diamond Head, Ewa Beach, Haleiwa,Hauula, Hawaii Kai,Honolulu, Kaaawa, Kahuku, Kailua, Kaneohe, Kapolei, Laie, Lanikai, Mililani, Pearl City,Wahiawa, Waialae Iki, Waialua, Waianae, Waikiki, Waimanalo, Waipahu. 

#4.  Messing with your credit, killing the deal.

You've gone to all the trouble to get a good mortgage quote and get preapproved, you've found the house and had your offer accepted, and you are in escrow.  Your mortgage officer and Realtor told you not to spend anything on anything until the deal closes.  But you are just so happy and that living room set would be so perfect with the new big screen TV.  You've possibly just cancelled the deal on your house.  Loan officers have to pull your credit again as part of the final loan letter due right before closing to make sure that your financial situation hasn't changed since the loan received conditional loan approval.  Unless you are very low on your debt to income ratio, the loan may be cancelled and it will be too late to get another.  DON'T SPEND ANYTHING ON ANYTHING, CREDIT OR CASH that is more than what you were spending the day you got your loan.

GOt that loan approved?  Let's look at some homes in  Aiea, Diamond Head, Ewa Beach, Haleiwa,Hauula, Hawaii Kai,Honolulu, Kaaawa, Kahuku, Kailua, Kaneohe, Kapolei, Laie, Lanikai, Mililani, Pearl City,Wahiawa, Waialae Iki, Waialua, Waianae, Waikiki, Waimanalo, Waipahu.

#3 Not getting a local loan approval. You should shop for your mortgage of course.  But one of your estimates should be a local loan officer's pre-approval.  Yes, it's a pain to get all those docs together, but you are going to need to do it anyway.  And why local?  Hawaii has very unique land laws and condominium laws that even USAA doesn't understand.

Do you know which condominium's apartments are too small to get conventional loans on?  Do you know how that fence on the property affects the title and whether the loan officer can get a VA loan on that renovated lanai or do you have to tear it down?

I have had great quotes at low rates from internet/mainland mortgage companies right up to conditional approval of the loan (that's about three-quarter's of the way through the escrow towards closing the sale) when the loan originator will suddenly say, oh we didn't know that condition was there - we can't loan on that.  If you have a local loan officer already having pre-approved the loan on that home; they can pick up the ball when mainland cheap quote drops it.

Sellers and I place higher value on a pre-approval, especially from a local loan company that we can check on.  So give me a call and I'll hook you up with our loan partner and let's see what you have to work with and let's go shopping for your new home in paradise like these in Aiea, Diamond Head, Ewa Beach, Haleiwa, Hauula, Hawaii Kai,Honolulu, Kaaawa, Kahuku, Kailua, Kaneohe, Kapolei, Laie, Lanikai, Mililani, Pearl City, Wahiawa, Waialae Iki, Waialua, Waianae, Waikiki, Waimanalo, Waipahu.