Hawaii Randy's Real Estate Opinions: December 2006

I know most top agents have strong community ties.  If you do not, you should really think about giving back to the community that is feeding your family.

You get a several benefits from volunteering:

• You help improve the community you live in and are selling homes in.
• You make many new friends and increase your network.
• I find a many of my clients look me up because they or one of their friends know me from one of my community activities.
• Your clients and other agents will respect you a much more.
• It gives you a great sense of pleasure to know you made a difference.

Here is a list of some of my activities in my community:

• Commissioner, Hawaii Civil Defense Advisory Council
• Vice Chair, Leeward Region of the Honolulu Board of Realtors
• President, Hawaii Chess Federation a 501(c)3
• VP, Mililani Chess Club a 501(c)3
• VP, Mililani Drug Free a 501(c)3
• VP, Mililani Garden Homes 1 AOAO
• County Vice Chair, Hawaii Republican Party
• Coached indoor soccer
• Volunteer for American Cancer Society
• Volunteer for American Heart Association
• Volunteer currently and in the past on several School parent groups
• Worked 4 years in the State House of Representatives
• Volunteered on many political campaigns including the Governor's

My intention is not to brag, please believe me this is not my intent.  I am trying to make a point.  Look over this partial list of things I am currently involved with and things from the past and just think about how big is my network of friends.  When I decided to go into real estate, one of the factors in my decision was the shear number of people I know and that know me.  What a natural line of work for an experienced salesman who knows so many people.  The list doesn't even mention all the people I have done business with for over 20 years locally.

Do I exploit these areas, absolutely not!  I am not stealth either.  Mine and my wife vehicles have my signs and on them.  I have golf shirts made up that have my name, company and designations embroidered on them.  I wear them almost 7 days a week.  I also have large signs at the malls in our community with my face and slogan, making me well recognized. I never push my business on any of the other volunteers; I don't need to and feel it is tacky.  People continuously approach me or send me referrals.  I can't even go to the store without someone stopping me to ask about the market.

I do send my Christmas Cards to most of my volunteer contacts, but do not solicit them in any other way.  I also donate websites to most of these groups, some have a donated by banner on the bottom and some do not.

So the question is, are you involved in your community?  If the answer is yes congratulations, if the answer is no, what are you waiting for?

One last thought... 

A new agent in my office two years suggested I cut back on all this volunteering.  After all it was taking time away from my business.  He also thought I was spending too much money on marketing and stated he would never make that mistake. He is no longer in the business.

If you volunteer in your community in ways you think other agents should consider please share that with us.

Aloha to all and have a Hauoli Makahiki Hou (Happy New Year in Hawaiian)

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Mililani Links:

• Mililani Town Association: http://www.mililanitown.org/
• Mililani Drug Free: http://www.Mililanidrugfree.org/
• Mililani Chess Club: http://www.mililanichess.org/
• Real Estate Sales: http://www.hawaiirandy.com/

Mililani Blog Posts:

• Welcome to Mililani - Part 1 the Shopping Centers
• Welcome to Mililani - Part 2 the Planned Community
• Welcome to Mililani - Part 3 the Surrounding Communities
• Mililani is Pet Friendly  
• Mililani, Hawaii Directory of Schools
•   
• 12 Great Reasons to Buy a Home in Mililani, Hawaii
• Mililani - Q1 2007 Real Estate Sales Activity of Existing Homes
• Real Estate Sales In Mililani Seems to be Picking Up
• Real Estate Sales Activity in Mililani
• Mililani Townhouse Sales are on Fire!
• Mililani, Hawaii - A changing market, many opportunities
•   
• Mililani Chess Kids are Still Flashing Their Stuff
• Mililani Middle School Brings Home State Chess Title
• Mililani High School Cheerleaders Take Their First State Title
• A Sunny Day of Chess and Real Estate in Hawaii
• Mililani HS Wins OIA Softball Title
• Are You Involved in Your Community? If Not, Get to It.

I received an e-mail this morning from my older brother Russ Prothero who is a great Realtor with Re/MAX in Branson, Missouri.  He sent a link to this website: http://www.jet-man.com/actuel_eng.html and went to talk about when he was younger how he wanted in the worst way to buy a hang glider and fly if off the cliffs in Waimanalo here on Oahu in the early 1970s.  His wife won out and he never did get his hang glider or experience free flight.

I responded back to him about a hang gliding experience that happened in Hawaii only a few years later, just up the coast a short distance from where he wanted to fly.  It happened in 1979 or 1980 while I was visiting Hawaii, a year or two before I permanently moved there.

While watching the evening news I saw a report on two dead hang glider pilots (or what ever you call them).  The story went that there were three guys who spent 8 hours climbing a cliff above Waimanalo with all their gear.  Late afternoon they finally got to the top of the mountain and built their rigs.

After checking their gear and the wind conditions, the first guy jumped off and was blown against the cliff and killed.  After seeing what happened to hi friend the next guy did the only logical thing.  He launched his hang glider and was blown back into the cliff and killed just like his friend.

By know the fire trucks, police cars and news crews were gathering on the road and beach below.  After quite a long period of time the third and last guy after watching his two friends die decided to take the smart way out.  You guessed it.  He launched his hang glider and flew it safely all the way down the beach and made a perfect landing.

Upon his safe arrival near the crowd that formed he was approached by a local news reporter.  The reporter asked the magic question.  Sir, you just saw your two friends die trying to fly their hang gliders off that cliff, what in the world were you thinking when you jumped off?

He paused for a second and said, "It took me 8 hours to climb up there and I was too tired to climb down".

Now I know there is a moral to that story, but I can't think of what it is.

Aloha to all and have a Hauoli Makahiki Hou (Happy New Year in Hawaiian)

I just received word that Governor Lingle vetoed an increase in the HARPTA tax.  HARPTA is our state withholding tax that is taken at the time of closing from out of state owners. 

HARPTA is currently 5%.  Our wonderful liberal legislature utilizing their finite wisdom decided, decided it would be a great idea to slap out our state investors by raising the tax to 8.25% beginning January 1, 2007.

I am so delighted to see our Governor step up to the plate and do the right thing.  We in Hawaii depend on out of state money to drive our economy.  Folks, Hawaii is still open for business.  Please come and bring your money.

Aloha to all, have a Hauoli Makahiki Hou (Happy New Year in Hawaiian)

All top agents do things that average agents would not think of doing for their clients.  Looking back on 2006 I thought I would start a list of a few I have done this year.  Please add to the list, I think it will be a fun read to see some of the things agents have done in 2006 to go the extra mile to service their clients.

I have done contract signings in several unusual places.

• On the side of a fire truck while my client was fighting a brush fire.
• In military base housing
• On the hood of my car at the military base gate (escrow closing)
• In 2 different firehouses
• At a car dealership
• In my car at a parking lot outside of my clients place of work. (escrow closing)
• In the VA hospital ( we signed all of the documents their including the closing)  I then helped move him in to his new condo upon release from the hospital.
• Signings off island including one in Chad Africa, one in the Phillipines and several others on the mainland US.  I normally try to get POAs, but not always possible and in a few cases the agent on the other side dropped the ball and didn't get the POA.  The one in Africa was a nightmare.  My clients were in the Philippines and gave a POA to a family member.  We signed and had to wait three weeks for the Africa docs to get back to us. Both difficult because you have to go through the embassy to get the documents notarized.

• I personally helped move two clients into their new homes.
• I spent the evening before closing cleaning and washing windows on the world's filthiest condo when the seller didn't have it cleaned.  Yuk!
• Repaired and refinished 2 doors to get VA approval on a loan.  I represented the buyer in an AS IS sale.
• Purchased a few appliances
• Brought in the handiman to make several small repairs.
• Gave out more Lowes and Home Depot gift cards than I can count.
• Dinner and movies for my new buyers to give them a break and an evening out.  Moving is so hectic.
• Paid for professional cleanings.

I try to hold my fees up front, because we all know there will be expenses on the back end.  You have to have gas left in the tank in the home stretch.  Beside that clients remember the extra mile stuff.  That is how referrals begin to grow.

I am looking forward to seeing lists from other agents.

Aloha to all have a Hauoli Makahiki Hou (Happy New Year in Hawaiian)

I realized I tend to write too much about the negatives I see in our business.  I thought I would change the tone and write about something positive that happened to me this month. 

The reality is we have an industry made up of some really great people and a few who should be in another line of work.  I love this business and couldn't imagine doing anything else until I retire.

I hadn't shared with the group about my last month.  I have been in and out of the hospital this month.  The first week of the month I had surgery and last week I wound up back in the hospital with severe internal bleeding.  As such I have had a lot of free time to rest and play on my laptop and on AR.  Unfortunately I have been limited to what I could do with my clients.

The day I of me getting out of the hospital for the first time a client called.  I was still in the hospital waiting for the wheel chair to take me to the car.  I have been communicating to them on the east coast for about a year and they now arrived in Hawaii and wanted to look at a couple of the properties I had e-mailed them.  I let them know my situation and said I would call another top agent in my office who they would really like to help us out.

So I called trusted friend and partner in crime Karen.  She jumped to the rescue and followed up with them.  She worked with them last week while I was back in the hospital for the second time and on Christmas Eve got them in contract.  The amazing part is she continued to refuse any part of the commission.  Christmas Day Karen and her husband got on a plane to go spend the rest of the holidays on the mainland with family.  I am taking over today to get the escrow opened and see it the end.

We are doing a 50/50 split over her objections.  What a class act!

PS. Mahalo is Thank You in Hawaiian

Many of you know I am the President of the Hawaii Chess Federation and I run a program called "Chess in the Schools."

In the last year some of our students from Hawaii have done us proud.  We have the 9^th Grade National Champion out of our chess club in Mililani and this month we had the our first team victory in national competition.  My partner in crime Guy Ontai along with our State Open Champion Cornelius Rubsamen trained them for the event.

Below is the Press Release I sent out that was picked up by the local newspaper.

For Immediate Release

December 16, 2006

Hawaii Chess Federation

P.O. Box 893636 • Mililani, HI  96789

Contact:  Randy Prothero  (808) 384-5645  gambit7@hawaii.rr.com

Kamehameha Schools Win K-6 Blitz Tournament at the 2006 National K-12 / Collegiate Championship  

            State Champion Kamehameha Elementary School Chess Team competed at the 2006 National K-12/ Collegiate Championship and took first place in the K-6 Blitz Team Tournament.  Team members included 6^th graders Tristan Kaonohi, Likeke Aipa, and 5^th grader Nathaniel Brown.  They had several east coast teams following close behind.   

The team also won several individual trophies during the Blitz event led by an 8^th place overall finish by 6^th grader Tristan Kaonohi.

This was their second time to compete in a national scholastic event.  Over 1500 elementary school children competed at the Nationals conducted December 8-10, 2006 at Disney's Coronado Springs resort in Lake Buena Vista Florida.

            Also competing from Hawaii; William Chen, 7^th grader from Punahou School and  (Blaise) Kapena Lum, 6^th grader from Maryknoll School.  Who also had strong showing in the individual events.

            1,540 players representing 40 states were represented at the 2006 National K-12 / Collegiate Championship

The Kamehameha Elementary Chess Team will continue to train hard.   They are planning to compete in possibly three national events in 2007.  Volunteer coaches Guy Ontai (State Scholastic Chess Director), Cornelius Rubsamen (Current State Adult Champion) are already setting an aggressive training schedule.

Results from the 2006 National K-12/ Collegiate Championship.

Individual:  http://www.alchess.com/chess/06/k12/?page=STANDINGS&xsection=

Team:  http://www.alchess.com/chess/06/k12/?page=TEAM&xsection=

Local schedule and additional information at the Hawaii Chess Federation's home page, http://www.hawaiichess.org/.

# # #

The Hawaii Chess Federation is the state affiliate of the United States Chess Federation, the governing body of chess in the United States.

It is about time they give folks a break.  With the climbing of property values homeowners are paying as much a double and even more in some cases over what they paid 3 or 4 years ago.  Below is information posted from the City and County Website.

Real Property Assessment Exemption Information

Purpose

This document was prepared by the Real Property Assessment Division of the City Department of Budget and Fiscal Services to assist Oahu property owners seeking information on home exemptions. It explains how to qualify for exemptions which reduce the net taxable assessed value of the property used in determining the property tax. 

Background

The first home exemption law was enacted in 1896 by the Republic of Hawaii to provide some tax relief, encourage home ownership and the settlement of land. In 1896, the home exemption amount was $300. 

Beginning with the 2007 assessment (2007-2008 tax year) the basic home exemption for homeowners under 65 will be $80,000. This means that $80,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. For homeowners 65 years and older the home exemption will be $120,000. To qualify for this exemption, you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed.

Property owners with an existing home exemption, with their date of birth on file, do not need to re-apply for the new exemption amounts. The exemption amounts will automatically increase depending on the age of the homeowner.

Who Qualifies for the Home Exemptions?

You are entitled to the home exemption if: 

1. You own and occupy the property as your principal home ("real property owned and occupied as the owner's principal home" means occupancy of a home in the city with the intent to reside in the city. Intent to reside in the city may be evidenced by, but not limited to, the following indicia: occupancy of a home in the city for more than 270 calendar days of a calendar year; registering to vote in the city; being stationed in the city under military orders of the United States; and filing of an income tax return as a resident of the State of Hawaii, with a reported address in the city; 
2. Your ownership is recorded at the Bureau of Conveyances, State Department of Land and Natural Resources, in Honolulu on or before September 30 preceding the tax year for which you claim the exemption. In the case of a lease, the document must indicate that the lessee has a lease for residential purposes for a term of five years or more and will pay all property taxes;
3. You file a claim for home exemption (Form P-3) with the Real Property Assessment Division on or before September 30 preceding the tax year for which you claim the exemption.

Single Home Exemption

The law allows just one (1) home exemption; if a husband and wife live apart and own separate homes, each shall be entitled to one-half (1/2) of one exemption or to an exemption apportioned between their respective homes in proportion to the assessed value.

In Lieu Of Home Exemption For Homeowners Age 75 Years And Older Whose Household Qualifies As Low-Income

Purpose: Exemption for real property owned and occupied as the owner's principal home whereby the owner is age 75 years or older and the total household income qualifies as low-income.

When To File: On or before September 30th preceding the tax year. For example, if you file for the exemption on or before September 30, 2005, it will apply to the tax year that begins July 1, 2006, and ends on June 30, 2007. The exemption for qualified applicants will appear on the Real Property Assessment Notice mailed to you on December 15, 2005, and will also be included in the tax calculation and tax bill mailed to you on July 20, 2006. You must re-file prior to the beginning of each 5 year age bracket.

What To File: • Form BFS-RP-P-4, Claim For Exemption; if you currently do not have a home exemption, you must also file Form BFS-RP-P-3 (Home Exemption). 

• Copy of Federal or State income tax return; if none was filed, then complete Form BFS-RP-P-4A, Household Income Declaration.
• Form BFS-RP-P-4B, Permission To Release Information 
• Copy of Federal Form SSA-1099, Social Security Benefit Statement, which shows the total Social Security benefits paid to you last year.
• The forms and instructions are available at the Real Property Assessment Division and on the Internet at www.honolulu.gov/rpa/form.htm. You can also request the forms by calling the telephone numbers listed below. 

Exemption Amount: The exemption amount is deducted from the property's value. To qualify for this exemption, you must be 75 years or older on or before June 30 preceding the tax year for which the exemption is claimed and the household income does not exceed the low-income limits established by the United States Department of Housing and Urban Development.

• Age 75 to 79            $140,000
• Age 80 to 84            $160,000
• Age 85 to 90            $180,000
• Age 90 and over      $200,000

Where To File:

• Real Property Assessment Division
• 842 Bethel Street, Basement
• Honolulu, Hawaii 96813
• Telephone: 527-5510 or 527-5539 Fax: 527-5540

Or

• Real Property Assessment Division
• 1000 Uluohia Street, #206
• Kapolei, Hawaii 96707
• Telephone: 692-5541 Fax: 692-5550

If you mail the forms and supporting documentation to the Real Property Assessment Division, it must be postmarked by the United States Postal Service no later than September 30.

For more details go the City and County website: http://www.co.honolulu.hi.us/rpa/forms.htm

After several delays I am finally getting my cards out today.  As in the years past I am sending Christmas Cards, not Holiday Cards.

I have actually been counseled in the past that I may offend some and should not mail Christmas Cards.  When I worked for a large corporation years ago it was company policy not to call them Christmas Cards.

Here is my response.  LIGHTEN UP!

• Merry Christmas, Merry Christmas, Merry Christmas, Merry Christmas.
• Mele Kalikimaka, Mele Kalikimaka, Mele Kalikimaka, Mele Kalikimaka,   (Mele Kalikimaka is Merry Christmas in Hawaiian).

If someone celebrates another holiday from another religion and sent me a card, I would not be bothered or insulted.  If someone were to say a pray for some other religion I would be courteous and respect them by being quiet.  If someone placed a religious display for their Holiday it would not bother me in the slightest.  Why would a rational person be insulted by Merry Christmas?

After almost 2 seconds of thought I made a business decision that every year I will send Christmas Cards.  If that costs me a piece of business it will be offset by any it may bring me. 

So please go out and enjoy the Christmas Holidays with you family and have a safe and prosperous 2007.

Also view my post: Hawaiian 12 Days of Christmas

In Hawaii, we have our own Pidgin version of Twelve Days of Christmas song:

Here is the last verse:  Numbah (number) 12 day of Christmas, my Tutu (grand mother) gave to me:

• 12 television
• 11 cans of spam
• 10 missionary
• 9 ukulele
• 8 pounds of poi
• 7 shrimp a'swimmin'
• 6 hula lesson
• 5 big fat pig
• 4 flower lei
• 3 dried squid
• 2 coconut &
• 1 mynah bird in one papaya tree
  
  

The numbers and words are pronounced in proper pidgin, making this truley a local version.

The official dictionary for Pidgin is called: Pidgin to Da Max.

Aloha Everyone, I just received this notice from my local Wells Fargo agent about the new FHA holiday program. 

Effective for HUD REO sales contracts dated between
Dec. 8, 2006 and Jan. 5, 2007

 The U.S. Department of Housing and Urban Development is offering a special sales campaign, called "FHA Brings the Holidays Home." This campaign is especially designed for low- to moderate-income families and HUD-owned single-family real estate owned (REO) properties across the country.

During the "FHA Brings The Holidays Home" sales event, homebuyers who purchase a HUD-owned home and finance the purchase with an FHA-insured loan will be entitled to sales incentives including:

• $2,500 Holiday Home Improvement Allowance*
• $500 bonus to the selling real estate broker
• Minimum required down payment of only $100

The incentives are effective for HUD homes sold between Friday, Dec. 8, 2006 and Friday, Jan. 5, 2007 to homebuyers who intend to occupy the property as their primary residence for at least 12 months and who do not currently have an FHA-insured mortgage.

In addition to the special holiday sales incentives, buyers may also receive a credit for up to three percent (3%) of closing costs.

The $2,500 Holiday Home Improvement Allowance will be a cash credit from FHA to the borrower at closing, which may result in cash back to the borrower on the HUD-1. This is acceptable for this program. Even though the borrower may receive cash back at close, WFHM must still verify and document the loan file to indicate the borrower has the required down payment and sufficient funds to cover their other costs.

Additional information on HUD disposition programs is available at http://www.hud.gov/ and http://www.espanol.hud.gov/