Have you ever heard the phrase “Buyers Are Liars?”    Yes? Agents have used this term for as long as I have been Hawaii licensed.  In fact, before I bought our first house back in the 70’s, that saying had been kicked around from both sides of the Atlantic Ocean to the Pacific Ocean.  As a consumer of real estate , I was labeled that dreaded three letter word.  Ouch!!!  I never expected me of all people to be tagged as one of those!

Sometimes,  buyers are not clear about where they are in the buying cycle.  Buyers get nervous especially with large money investments being on the table.  Timing is everything.  All the buying conditions must be right.

As an agent, I  have been left out & disappointed when a buyer just cannot make up their minds.   I have to admit that it is an emotional  letdown not to get a contract signed and open escrow.  Buyers are smarter today with more knowledge.   It is critical to understand what your buyer is trying to do when they come over to the Big island and meet with you.

Never assume anything today. Continue Reading »

Hawaii Home Foreclosures

Why should you or shouldn’t you buy a foreclosure?   Pros & cons  exist.  No matter what buyer category (2nd home, investor, rental income, etc.)  deals on foreclosures  can be found in the Mauna Lani Resort and other Big Island districts and resort areas.  Prices are discounted but there is risk.

It is essential to understand the pros and cons before making a purchase.  Good advise can be obtained from professionals who know the facts.  Consult those who have the knowledge and not what you have heard from a friend or associate.

Foreclosure 101: There are several types of properties know as “foreclosures”.  Pre-foreclosure (also know as short sales), the homeowner defaults on loan obligation & wants to sell to avoid going into full foreclosure (referred as REO).  Foreclosures  becomes property of the bank/lender.  Deed is surrendered & property is now REO (real esatae owned) by note holder.

Pros: Lender & seller agree in terms to sell in a hurry with listing price reduction.  Buyer is at advantage.  Lender does not want to be in the real estate business and are often willing to  offer discounts; the longer they hold these properties, the more it costs in terms of taxes, maintenance, etc.  All sorts of price points are available & a buyer can find equity, appreciation and cash flow in a foreclosure purchase.

Cons: Buyer can find aggressive competition from other buyers.  Critical to know what you are getting involved with the purchase.  A pre -foreclosure can be misleading.  Property could be priced higher than actual  worth to satisfy both homeowner (pay offs), and bank (recoup debt).

The key is Continue Reading »

I recently took some time off from blogging, so I could focus more on just making a living in Hawaii’s ever changing real estate industry. Sure, real estate agents often have plenty of time for blogging, social networking, and so on. However, I was getting a bit overwhelmed by all the negative media attention and armchair real estate analysis that places the downturn in Big Island real estate in the same category as Armageddon.

I often spend time with buyers who are looking for deals in foreclosures, short sales and distressed (need to sell) resale listings. Many see this time as a great opportunity to take advantage of the hardships of others. That said, there remains a great deal of vacillation and lack of commitment even among buyers in this category.

I have spent a great deal of time with individuals who say they are ready to own a “piece of paradise,” who have evidently done their homework and “understand” how much prices have dropped in this current buyer’s market. Yet, these same “lookers” continue to head back to the mainland, leaving me with, “We’re still thinking about it! Let us know when you reach the bottom!”

I maintain that this consumer doubt with the market bottom position remains the BIG question for so many hesitant buyers. Continue Reading »

The Federal Government is attempting to regulate appraisers and mortgage lenders in 2009. How will new regulations affect Big Island buyers? Clearly, there are big changes ahead for the appraisal and mortgage industries. Federal Housing Finance Agency (FHFA) Director James B. Lockhart has recently announced that Fannie Mae and Freddie Mac will implement a revised Home Valuation Code of Conduct (HVCC) effective May 1, 2009.

The code is primarily directed at regulating banks and other mortgage lenders and promoting appraisal independence. Mortgage brokers and realtors will no longer be allowed to choose appraisers. Instead, the appraisers will be chosen by the lenders. In the case of lenders’ in-house appraisals, the loan-origination departments will not be allowed to influence the valuation process in any way.

According to Christopher Palmeri of Business Week, “The appraisal industry has justifiably come under fire for its role in the great housing bust. Property appraisals, required by lenders before a loan is made, are supposed to provide an independent assessment of the home’s value. But during the boom, appraisers routinely signed off on a doubling or tripling of home values, sometimes racked up in just a matter of months. Investment properties were appraised at prices that made no investment sense.” www.businessweek.com/bwdaily//jan2009.

Palmeri continues, “The new rules only apply to loans bought by or guaranteed by Fannie and Freddie. Lenders who operate independently of those channels do not have to follow them. But since Fannie and Freddie buy or guarantee a huge share of all U.S. mortgages, the changes should have wide application.”

Most professional appraisers strongly Continue Reading »

Humpback Whale

The Big Island is beloved for its dramatic natural beauty, diverse eco-climate and rich culture and history. Yet, it remains the least discovered of all the Hawaiian Islands. Visitors and residents usually have their special favorites that include—splendid sunsets falling into the glorious Pacific Ocean; the pristine beaches, both public and “hidden,” along the Kona Coast; ubiquitous rainbows; the enchanting and mysterious Hawaii Volcanoes National Park; Mauna Kea’s Onizuka Visitor’s Center for some of the best stargazing in the world; viewing or hiking into the breathtaking valleys of Waipio, Waimanu and Pololu; the heavenly Hamakua Coast and sleepy Hilo town on the Windward side; swimming with wild spinner dolphins in Kealakekua Bay; the warm springs and black beaches of Puna; the historic City of Refuge (Pu`uhonua o Honaunau); and, the wide ranges and pastoral landscapes of Paniolo Country, just to name a few.

The humpback whales are at the top of my own “Appreciation List” for the Big Island. Whenever I am near the coastline during the months of their seasonal migration, my eyes are peeled for these colossal creatures. I never tire watching them blowing geysers and frolicking, flipping and splashing their tails with the utmost freedom and joy of expression. Communing with whales, even at a distance, is always a heartwarming experience because whales are intelligent beings with whom we share our very delicate and sacred planet. They often remind me to lighten up after an especially stressful day…oh yes, we have those in Paradise, too!

From October until May, Continue Reading »

Although everyone had high hopes that the 2008 U.S. housing market would have a soft landing, increased foreclosures and a meltdown of the residential mortgage market caused the housing sector to crash-land. Even worse, the residential mortgage crisis spread to all ownership categories, including our blessed Aloha State. The year 2008 proved to be a real roller-coaster ride for the Hawai’i real estate industry.

While the credit crunch and economic uncertainty have caused investor anxiety and tighter lending standards, the end result was nearly 30% fewer Hawaii real estate transactions than the previous year. Many potential buyers saw their investments evaporate in the global financial crisis, and buying decisions came to an abrupt halt. Many were scared to move forward. “Let’s wait and see what happens,” seemed to be the typical slogan of our prospects. Almost every active Hawai’i licensed real estate agent or broker has some story to share about deals gone bust.

Some pundits theorize Continue Reading »

Mauna Lani Resort, Big Island Hawaii

I am writing my first, and God forbid, not my last blog. As any beginner, I am excited and also have mixed emotions, as I am anxious to get off on the right foot. I’ve been reading and commenting on blogs for years, but now my head’s the one on the chopping block.

That being said, I wanted to get my feet wet by sharing some factual data that you may or may not know about the Mauna Lani Bay Resort.  It’s always good to refresh one’s memory with useful information to impart to clients, friends, and family members.  As licensed agents, we usually have a great deal of knowledge to offer.  So here goes.

The Mauna Lani Resort sits oceanfront on the finest stretch of shoreline on the Kohala Coast of the Big Island of Hawai’i. Located 23 miles north of the Kona International Airport, this oceanfront resort features the luxurious Mauna Lani Bay Hotel & Bungalows, Mauna Lani Spa and the Francis H. I’i Brown Golf Courses. www.maunalani.com

Here are a few interesting tidbits Continue Reading »