Hawaii Randy's Real Estate Opinions: August 2007

A few months back a friend of the family who I was considering hiring as my assistant, made reference to the amount of time I spend on community boards and volunteering with different groups.  He told me he thought it was not a wise idea for someone as busy as I am to give that much time to my community.  Why do you do it he asked?  The answer was because I live in the community.

The second thing he said made me chuckle, "you are so lucky that you keep finding customers".  I have heard the second comment from other agents in the past, not just in reference to me but towards any agent who is busy.

Luck has nothing to do with it.  Hard work does. 

• If you are working open houses and doing floor duty regularly you will meet potential clients and pick up a percentage of them.
• If you advertise regularly and effectively you will pick up more clients.
• If you do a great job for you clients they will give you referrals and you will pick up more clients.
• If you are involved in community groups and where your real estate shirts have signs on your vehicles and are well known in the community you will pick up clients and referrals.

If you do all of those things, the inexperienced, the lazy and the slow agents will all call you lucky.  You may be in some way lucky.  You may be lucky that they are envious and not doing the things on the list to pick up those clients.

Aloha and have a good day.

Donna Shefcheck officially is on board.  Donna got her Hawaii real estate license and is now a member of the National Association of REALTORS®, Hawaii Association of REALTORS® and the Honolulu Board of REALTORS®.

Donna will be the energy to help drive the new team I am forming.  She will be my assistant and transaction manager for the team.

Donna comes with a unique background.  She is an archeologist whose specialty is ancient Hawaiian burial sites.  She is excited about learning the real estate business and will keep all of us on our toes.  With her on the job, I know our files and records will be kept to the tightest standards.

Donna will be working with me tomorrow.  She has a good friend we will be showing property to in the morning then in the afternoon we will be holding an Open House at one of my premium listings.

Welcome Aboard Donna. 

She has already hit the ground running.

PS: l will add her picture tonight or tomorrow.

A few members messaged me to see if something a wrong.  The last couple of weeks I have been so busy with work that I haven't had much time to write on Active Rain.  My schedule looks to be getting even busier.  That is a good thing.

The bad thing is I miss being able to post as regularly as in the past.  Hopefully, as my new team gets formed and settled in, things will stabilize again. 

This forum has been a real benefit to me and my business.  I have learned so much from the members here and have incorporated many of the lessons in my day to day business. 

I have also picked up new clients, who have had the opportunity to be introduced to me through my writing before interviewing me.  What a nice way for the public to check me out and determine if we will be a good fit.

The next few weeks you may not see as much of me as in the past, but hopefully once I get over the hump I will be spending as much time as in the past.

Good Luck and good blogging.

Many of you know I have been on a strict diet for the last year.  The last three or four months I have been hitting the gym in the mornings before going to work.  I am starting to finally get back in shape. It took losing over 170 lbs.

Last weekend I took a little time off for the first time in several months.  Our chess club had a campout at Bellows Beach on the Windward Side of Oahu. My six year old son Jacob and I camped out for 2 nights.  It was a great father/ son bonding.

We did a lot of activities that even a few months ago I would not have been in physical shape to do.  Six games of basketball; touch football and swimming in the surf throughout the weekend.  All things I wouldn't or couldn't have done until recently.  I have not played a single game of basketball in years.  I would have had a heart attack trying.  It was so exciting for me to find I could keep up with the young guys again.

Getting in shape is something that not only affects me physically it also affects me mentally and in business.

• I have much more energy for my work than ever.
• I sleep better so I am rested.
• Potential clients respond in a more positive way to me.  I am not as intimidating to children.
• I put out as more positive energy.
• I do not get tired climbing stairs to show third floor condos.

My message for the day:  If you want to send your life and business in a more positive direction.  Put down the remote for the TV and head for the gym.  The first two weeks are hard, but after that it gets easy.  Also get rid of the sugar and eat good food.  You will be amazed how much better you will feel.

When we look at what is happening the last few weeks in our industry, what is the number one concern?  If you were going to make an offer on a home to purchase it, what would be the one thing you would focus on?

1. The financing

In the last three weeks I have received four of the worst contracts I have seen fired off by agents to my sellers.  

The contracts were missing:

• A pre-approval or even a pre-qualification letter from a lender.
• Signatures stating they have an earnest money check.
• Signatures from their brokers stating that they reviewed the offers.
• Signature from the agent on the lead based paint addendums.
• Three did not have a cooperating broker's agreement. (I guess they did not want to get paid).
• Two of the contracts were marked N/A for special provisions and then had special provisions typed in.
• Two were expired before they even transmitted them and one gave my out of state client ½ a day to respond.

All of these agents must have attended or missed the same contract writing class.

With the lending industry going through their difficult times and real estate markets going through changes; it is not time for amateurs. If you do not know what you are doing, team up with someone who does or take up another occupation.  I hear there are shortages in the hair cutting and fast food industries.

OK, I apologize for venting.

Ocean Pointe a planned community in Ewa Beach, Hawaii (makes up part of tax map key 191).

Single Family homes: Although year to date average sales prices of single family homes arte down a little from 2006, we saw a little bit of a rebound in June and July.  Sales volume is still down from 2006 levels.  Inventory has come down a little but we are still looking at 6 months worth.  Buyers will continue to find sellers that may be a little negotiable.

Condo and townhouse sales are another story.  June and July inventory levels are similar to single family homes, which is an improvement over the May numbers.  Sales volume has shown drops over 2006 levels.  Average sales prices were coming up in the last two months, but did soften a little in July.

Currently (August 10, 2007) under the "Active for Sale Category" there are: 

• 54 Single Family Homes
• 30 Condos/ Townhouses

Currently in Escrow:

•   9 Single Family Homes
• 10 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/

Las Brisas is a development within the planned community of Ewa Gentry in Ewa Beach, Hawaii (makes up part of tax map key 191).

Single Family homes: The numbers in Las Brisas.  Sales activity ion Las Brisas has softened from 2006.  There is a lot of new home developments in the area competing with the resale market, along with a large amount of resale inventory in the neighboring communities.  It is a good area for buyers to find good deals in a time where Oahu median prices have been climbing and hit a record high island wide in June.

Currently Active for Sale (August 10, 2007): 

• 3 Single Family Homes

Currently in Escrow (August 10, 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/

If you are thinking about getting in the market to buyer or sell a home, DON'T WAIT!  The mortgage side of the business is going through some major changes and it is already becoming harder to buy or sell real estate.  Mortgage money is drying up in several segments of the industry.

If your credit is shaky, getting a mortgage has gotten much harder and possibly impossible in most cases.

For those looking to do 100% financing, you may have already waited too long, unless you have VA (government guaranteed loan) benefits.  Another alternative may be to go FHA (government insured loan), where you will need 3% down plus closing costs.  The 3% can be a gift from family, but not the seller. 

If you have 10% to put down, you can still go conventional, but will most likely pay mortgage insurance.  Stated income/ stated assets probably not happening.  Stated income for self-employed only and even then getting tougher.

Jumbo Loans are also getting much tougher.  Many mortgage brokers are finding them impossible or at difficult to fund.  The primary lenders are still working them.  A Jumbo Loan in Hawaii is anything over $625,000 and over $417,000 in most parts of the country.  In Hawaii that is below the median priced home.

We do not know how this will all shake out over the next few weeks and months. So what does this mean for us? 

• Interest rates are still quite low, but may be climbing.
• If you are waiting to get in the market.  Stop waiting!
• If you are in escrow to buy a home lock your loan as soon as possible.
• Choose a funding lender to get your pre-approval from.  Many sellers and their agents are not taking letters from brokers too serious.  I personally have seen two fall out of escrow after the broker said they were good to go.
• Seller's need to also be prepared for more days on the market and less buyer able to get financing especially on homes that are price above the jumbo loan threshold.
• Buyers and seller need to work with top professionals.  In this transition market it is no place for amateurs.

Good luck, it is still a good time to buy or sell real estate on Oahu.  We just need to adjust to what the lending industry is doing.

You read and followed the best advice for getting your home prepared for sale.  You removed negatives by painting, upgrading flooring and counter tops.  You have wonderful curb appeal, you had a landscaper come in and make yours the nicest looking yard on the block.  After reading and watching cable TV you even had your home professionally staged.  So far so good.

Man your home is looking so good.  It is looking so good that you are sure it will sell for more than the others in your area.  Earth to seller you are leaving the path.

Until now you were doing well.  Here is the problem, if you are in one of the areas that has a lot of inventory, your home will not sell if it is over priced.  You will compete with many desperate sellers that will do almost anything to sell.

Ok we may be off the path a little, but there is time to save you.

Hire a top of the line professional Realtor to market your home.  What are we looking for?

• An agent with a track record in the community or subdivision, who has a record for selling homes and not just taking listings.
• An agent who came prepared for your interview with market data and a marketing plan to get your home sold.
• An agent who spends time and money marketing homes and not just themselves.
• Look for professional designations and licenses.  This is a clue to whether they invest time and money in training and whether they take their business serious.
• Be sure they do this full time and are not hobbyist.

When considering your Realtor, remember this is a relationship that will tie up your property  A Realtor who charges the lowest fee is rarely the highest value.  They usually give the least amount of service.  You will continue paying mortgage while your home is on the market.  All of your plans will be on hold.  Time is money!

Look for an agent who tells you the truth and not what you want to hear.  Months from now when your home hasn't sold you will wish you followed this piece of advice.

As many real estate markets cool, it is not time to bring in the amateurs.  You will meet many desperate agents who will tell you anything to get your business.  They may offer discounts on their fees, they may promise you the moon, the sky and stars.  But in the end, will they sell your home?

As a home owner you need to do your due diligence in preparing your home and selecting a real estate agent.  Good Luck and good home selling!

Royal Kunia is a planned community in Waipahu, Hawaii (makes up part of tax map key 194).

Single Family homes average prices have softened.  Sales volume of single family homes has begun to show increases over 2007 levels.  Average sales are still a little soft over the 2006 prices.  Inventory levels are hovering at about 3 months worth.  The market is remaining balanced in Royal Kunia for single family homes.

Condos and townhouses:  Sales volume of condos is small, due to the limited number of condo complexes in Royal Kunia.  The inventory level for condos has leveled off at close to 3 months worth of inventory.     

Currently Active for Sale (August 3, 2007): 

• 22 Single Family Homes
•   7 Condos/ Townhouses

Currently in Escrow (August 3, 2007):

• 11 Single Family Homes
•   1 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/