Hawaii Randy's Real Estate Opinions: December 2007

Maili, Hawaii is located on the Leeward (west) side of Oahu. (tax map key 187).

Maili Single family homes sales volume has been down from the 2006 levels, year to date.  In November we saw an increase of activity over the same period in 2006.  The average sales prices were the reverse.  Average price down a little in November, but up year to date.

Maili condos and townhouses have seen a dramatic drop in sales volume from the 2006 levels.  Average sales prices are down year to date a little over 9%.  There were no closings in November.

The below figures include both fee simple and leasehold properties.  These are only the totals and averages.

Currently Active for Sale there are (December 29, 2007): 

• 89 Single Family Homes
• 19 Condos/ Townhouses

Currently in Escrow (December 29, 2007):

• 17 Single Family Homes
•   2 Condos/ Townhouses

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

We have been talking about this gathering ever since we learned the CRS Sell-a-bration was coming to Hawaii.  WooHoo Sally (Celeste Cheeseman) has reserved the location so it is on!

We will be gathering at the Gordon Biersch micro brewery.  For those of you who know Sally and I you may see the humor.  Neither of us drink, making us good designated drivers.

Monday January 28, 2008 

7:00pm until they throw us out 

1 Aloha Tower Drive Suite 1123
Honolulu, HI 96813
phone: 808-599-4877

We chose Gordon Biersch for a couple of reasons.

• They are easy to find from Waikiki and the Hilton were the CRS convention is going on.
• It has a large enough area to support us and they have similar gatherings regularly there
• They have great food and pupus (appetizers in Hawaiian).

Directions from: Hilton Hawaiian Village (Location of the CRS Sell-a-bration):

1. Turn left out of driveway on Kalia Rd.          (0.1Miles)
2. Turn Left on Ala Moana Blvd.                       (2.6 Miles)
3. Turn Left at Ala Moana Dr.                            (200 ft.)

There is valet and self parking on your right.  Gordon Biersch is in the back along the waterfront.

**  If you need a ride, I will have limited seating in my SUV.  My cell phone is (808) 384-5645

Attached is a list of those who have already confirmed their attendance to the Active Rain Honolulu Gathering:

• Randy Prothero - Hawaii
• Celeste "Sally Cheeseman & husband Gary - Hawaii
• David Kucic & wife Tonya - Hawaii
• Sharon Simms - Florida (Contact Sharon for CLHMS class on 1/24 & 25 at the Hilton Hawaiian Village)
• Marlene Bridges - California
• Tami Simms-Powel - Florida
• Pete Castillejos - Hawaii
• Jerry Bangerter - Hawaii
• Jeff Dowler & wife - California
• Lynda Eisenmann - California
• Joeann Fossland - Arizona
• Rob Lang - Kansas
• Jack Patton & wife- Florida
• Kathy Sperl-Bell & husband Bill- Delaware
• Mickey Hayward & wife Darlene  - Maryland
• Kathleen Barnato - California
• Jay Oku - Hawaii
• Mario Romero - Arizona
• Matt Heaton & wife Lydia - Active Rain

So far we have commitments from those in the warmer climates of Hawaii, Florida, Arizona and California.  I know the list will be growing as those in snow country get the word.  The water is warm at the beach here.  I look forward to seeing the list grow. 

Rob & Kathy Broke the warm weather crowd lock.  We now members from Kansas, Delaware & Maryland on the list. Welcome aboard!

Aloha from warm sunny Hawaii.

Woo Hoo Sally has also posted about the Hawaii Active Rain gathering.

One of the things we have all faced is buyer's remorse.  Buying a home is extremely stressful for most clients.  We in the profession who do this on a daily basis can easily treat the process of buying a home like a routine act.  It may be for us, but not for our buyers.  This is the biggest thing they will buy in their life in most cases.

Did they get the perfect home?  Did they get it at the right price?  How will they ever make those huge mortgage payments?  What if something bad happens like the roof leaks.  Being renters they never had to deal with things like that, they just called the landlord.

This process is quite scary for many folks.  As REALTORS® we not only help our clients find a property and draw up contracts, we need to take away the pain of purchasing.  Being part sales person, part psychologist and part trouble shooter, I pride myself on making the process of buying a home as painless as possible for my clients.

One thing I learned early on is to never push a buyer.  The worst thing you can do is push a buyer into making a decision that they will regret and possibly pull out of later.  When representing a buyer patience is a virtue. 

In the last week I have had a couple of clients who reminded me of that. 

The first found a home they liked and decided to put in an offer.  The offer was accepted verbally.  A day later the buyers changed their mind before the counter offer for some housekeeping issues could be signed.  I went over in my mind what had happened and questioned if I did anything that may have pushed them into a decision they were not comfortable with.  To the best of my recollection I did not, but will definitely be even more sensitive in the future.  The stress given to the sellers is quite unfortunate.  They thought they sold their property that had been on the market for a long time.  I felt real bad for them, as I completely understand how disappointed they must be.  Not to mention the poor listing agent who has worked so hard to sell the property.  The good news was they pulled out up front, and not after the sellers had their property off the market for a period of time.  I am following up with my clients, but trying to give them the needed space to allow them to decide how they want to proceed from here.

The second client saw a couple of properties they liked.  We went back two more times to look at one.  We will be presenting an offer on that one.  The lesson here was that they needed more time to make their decision.  By giving them the needed dwell time they were able to sell themselves on which was the perfect home for them.  I am convinced they will love this home and if I do everything correct they will be a great source of future referrals.

One of the great lessons I have learned in this business is to let the clients tell you which homes they like and not the other way around.  A great tip my broker gave me when I started in the business was to let the client walk ahead of you and watch for their reactions and listen to their comments.  Give them a little space.  Of course I point out features and possible red flags, but I try to let them take it in first.

Always remember they are the ones who will have to live there and pay the bills not you.

The Kailua communities (zip code of 96734 and some connecting neighborhoods) have seen changes in the real estate market.

The below figures include both fee simple and leasehold properties.  These are only the totals and average sale prices.

Single Family homes sales:  The month of November saw strong average sales prices.  Year to date, both average sales price and sale volumes have shown modest increases over the 2006 figures.  Inventory levels also came down a little in November.

Condo and townhouse sales:  In November both sales volume and average sales price volume continues to be a bit off from 2006, while average sales prices are still holding strong in the Kailua area.  Inventory levels are somewhat low, which may keep the prices strong.

Currently Active for Sale (as of 12/22/07): 

• 143 Single Family Homes
•   27 Condos/ Townhouses

Currently in Escrow (as of 12/22/07): 

•   15 Single Family Homes
•     9 Condos/ Townhouses

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

Makaha, Hawaii is located on the Leeward (west) side of Oahu. (tax map key 184).

The below figures include both fee simple and leasehold properties.  These are only the totals and averages.

Here are number of single family homes sold in Makaha:

Single Family homes: Sales activity in Makaha has continued to be softer than 2006.  Year to date average sales prices have seen a nice increase, while the month of November saw a seasonal high that was not as strong as 2006, but higher than the year to date numbers.

Currently Active for Sale (December 22, 2007): 

• 52 Single Family Homes

Currently in Escrow (December 22, 2007):

• 4 Single Family Homes

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

This report covers areas including: Halawa, Foster Gardens, Aiea, Aiea Heights, Waimalu, New Town, Royal Summit, Pearl City, and Pacific Palisades.

The below figures include both fee simple and leasehold properties.  These are only the totals and average sale prices.

Single Family homes sales have softened. Average sales price of single family homes have seen slight increase year to date while sales volume is down from last year.  Inventory levels are reasonably low.

Condo and townhouse sales are another story.  The trend is similar to the single family homes in the area.  Prices are seeing growth while sales volume is down and inventory low.

Current Active for Sale (as of 12/22/07): 

• 55 Single Family Homes
• 65 Condos/ Townhouses

Currently in Escrow (as of 12/22/07): 

•  27 Single Family Homes
•  21 Condos/ Townhouses

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

The North Shore of Oahu includes communities from Kaena Point to Laie (Mokuleia, Waialua, Haleiwa, Kawailao, Waimea, Pupukea, Sunset, Velzy, Kahuku, Malaekahana, Laie. (tax map key 155 to 169).

The below figures include both fee simple and leasehold properties.  These are only the totals and average sale prices.

Single Family homes sales have softened. Average sales price of single family homes while up a little in November have seen some slippage year to date.  Sales volume is also down from last year.  Inventory levels are at nearly 10 months worth.

Condo and townhouse sales are another story.  Average sales prices have seen a large jump year to date over 2006.  Sales volume year to date is down.

Current Active for Sale (as of 12/22/07): 

• 128 Single Family Homes
•   55 Condos/ Townhouses

Currently in Escrow (as of 12/22/07): 

•   14 Single Family Homes
•     4 Condos/ Townhouses

*These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

Salt Lake Area (tax map key 111, includes Moanalua, Aliamanu, Mapunapuna and Airport Area)

The below figures include both fee simple and leasehold properties.  These are only the totals and average sale prices.

Single Family homes sales have softened. Average sales price of single family homes have continued to climb, while a little off in November the low sales volume makes it impossible to draw any conclusions.  Sales volume is down from last year.  Inventory levels are beginning to come down.

Condo and townhouse sales are another story.  Inventory continues to remain low.  Average sales prices have seen a nice jump over last year.  The Salt Lake area is still in a seller's market for condos.

Current Active for Sale (as of 12/22/07): 

• 20 Single Family Homes
• 35 Condos/ Townhouses

Currently in Escrow (as of 12/22/07): 

•   6 Single Family Homes
• 27 Condos/ Townhouses

 *These numbers were taken from the Honolulu Board of Realtors MLS system and are deemed to be accurate, but not guaranteed.

You can find out more about real estate in Hawaii at: http://www.hawaiirandy.com/

Or at: http://www.localism.com/

As I get to the end of 2007 I felt I needed to reflect on this past year and get ready to hit the ground hard for 2008.

For 2007 it was a year with some highs and some lows.  I will be finishing the year below the aggressive goals I set for sales and personal.

The year started a little on the slow side.  I spent much of December in and out of the hospital at the end of 2006 and most of January and part of February recovering from a surgery and then some complications.  As you know what you work on today comes in later in real estate.  Even with the set back, I think I had a decent year compared to what I am hearing from others.  I have no complaints.

I made some changes to the processes I use for my business with mixed results.  After scrapping Top Producer® I brought in Relay® for my transaction management.  I have now temporarily gone back to using Excel spread sheets, which seem to be faster and easier.  It just keeps me from easily sharing documents with others.  In 2008 I am planning to try another product.  I am determined to build the systems so as to be able to build a quality team with proper support.

On the team front, Donna Shefcheck got her license and has begun to work with me.  We are going through a little trial and error to get our systems in place.  We closed our first transaction together and she has a lot of energy.  I am working with a couple of other new agents on a transactional basis.  It is too early to tell if they will be team members in the future.

This year I helped several folks in their first homes and received referrals from friends and past clients.  I also received some referrals through Active Rain and a some new clients found me through my blog posts and Active Rain.

On a personal level I finished the diet I was one since mid 2006.  I lost about 185lbs. and have maintained my weight since August or September, which I am quite proud of. My oldest son's high school varsity football team won their division and I was able to attend all but one scrimmage game.  My youngest son played soccer in two leagues, one which I coached and I attended almost every game.  Both were significant improvements from years past and a goal I have made for the future.  It is so easy to get lost in your work and neglect your family.  My wife and I have seen more of each other than years past, but we still need to work on that a lot more.

We all need to remember why we work so hard.  It is for our family.

During this year I have continued to be involved heavily in the community and with the Board of REALTORS®.  I love doing community activities and they are also good for business.

So looking back on 2007 I have to ask the question:  Are we having fun yet?  For me the answer was yes.

Good luck in your 2008 planning.  May you and your family have a Mele Kalikimaka (Merry Christmas in Hawaiian) and a Haoule Makiki Hou (Happy New Years in Hawaiian)

Earlier today I presented an offer for one of my buyers on a condo just outside of our planned community.

After pulling the comparable sales in that complex and a couple of neighboring properties of the same construction we determined the asking price was higher than what it should appraise for.  My clients really liked this one.  It had some upgrades and 2 parking stalls that were at the same level as the condo.  So after researching the numbers my clients settled on a price to offer the seller.

I submitted their offer to the listings agent.  Our offer was lower than the asking price by about $12,000, but higher than any of the recent closings.  Quite generous being that the prices in that complex have seen price decreases over the last six months.  Other than price, our offer was clean.  No concessions, no special provisions and a full pre-approval with docs with a primary local lender and well known loan officer.

I get a call back from the listing agent within a half hour of presenting the offer.  Their client wants to counter offer us back up to within $5000 or asking price.  The problem is we are already pushing the price and do not believe there is any hope for getting the appraisal.  I asked, if it doesn't appraise will your client lower the price?  The response was no, they want their number and nothing less.

With several similar units for sale, their property over priced and on the market more than 3 months; they are definitely playing a dangerous game.  The prices have softened in their complex and they did not seem to get the message.  If my buyers purchase another unit they will have missed an opportunity to sell this property at a strong price.

I will mention a side piece of information. This property was purchased several years ago for cash, has no mortgage and has gone up more than 250% since then.  It may not be relevant for the conversation of what the home is worth, but I do find it interesting when considering their demands.