Hawaii Randy's Real Estate Opinions: July 2010

As real estate agents we always need to treat everyone the same.  Well maybe not.

In housing there are protected classes that you can't discriminate based on, someone being a member of one of those classes.

On a federal level the protected classes are:

• Race
• Color
• Religion
• Handicap or Disability
• National Origin/ Ancestry
• Sex

 In Hawaii our civil right laws includes all of those classes and a couple more:

• Marital Status
• Age
• Sexual orientation

On a federal level there is an exemption for a landlord renting out units in the same building they live in, if there is 4 or fewer units total.  In Hawaii the number of total units is reduced to 2.  The one exception to that rule is race.  The Civil Rights Act of 1866 prevents discrimination for race.

Now for the "maybe not" part of my opening statement.  Here are a few examples of legal discrimination.

• Color:  If you don't have the green, you don't get the home.  You can always discriminate on basis of credit or funds.  (Unless you are Fannie Mae or Freddie Mac)
• History: You can discriminate and the basis of a person's housing history.  Have they trashed previous rentals or do they have a history of not paying their rent.
• Pets: You do not have to allow pets.  In Hawaii we have a couple of exceptions to that rule.  You can't refuse to allow housing for someone with a service animal, whether it be a trained seeing eye dog or an emotional support pet.
• Drug Use:  You can discriminate against someone who has a drug or alcohol addiction.  You can discriminate against smokers.  In Hawaii you can't discriminate against someone who is in recovery.  That falls under handicap.

My favorite story about testing fair housing laws; was the story of a landlord in New York City who had a policy of not renting to lawyers.  One day he refused to rent to an attorney and got sued.  The judge asked the landlord if it was true that he refused to rent the potential tenant, based on him being a lawyer.  The landlord responded, "that is absolutely true your honor."  The judge asked the landlord to explain his policy.  The landlord responded, "Look where I am standing."

The moral of the story is that you can discriminate for reasons that do not fall under protected classes. Anytime you treat one group differently than another, you still may get sued, especially if they are lawyers.

All kidding aside.

• Keep good records.
• Be consistent with your policies and procedures. 
• Always remember almost everyone falls under at least one protected class or another so you better be prepared to defend your actions. 
• If you do not feel you can treat people equally, find another line of work.

The kinds of vendors our clients ask us to point them to are loan officers, home inspectors, termite inspectors, contractors, electricians, plumbers, handymen, flooring installers, painters, escrow officers, insurance agents, landscapers, home cleaners, property managers, locksmiths, etc.

I had a few discussions this week with other agents about giving referrals of vendors to clients.  I have my own set of rules in regards to vendors.

1. I only give names I trust completely to take care of my clients and will make me look good.
2. I have a list that is extremely difficult for a vendor to get on.  They can be removed in 2 seconds.
3. I would rather give the name of a really good loan officer, home inspector, etc. that I have complete faith in, than a list of several that are OK.
4. I accept no compensation from vendors for referrals.  I only require they give first class service.
5. Venders who offer kick-backs, etc. can't be on my list.
6. I do not require a vendor to send referrals to me to be on my list.  As much as I love to get referrals, I put client service ahead of all else.

I know many agents who believe they are protected from liability by giving many names to their clients.  I have heard some agents give 10 or more.  To the contrary, they would be better protected to give one really good name than several mediocre names.  Any name you give better be someone who you trust with your business and reputation, because that is what they have.

Good luck and good home selling!

$570,000

Wonderful 3 bed/ 2 bath home with incredible spaces.

Large workshop, large covered lanai and great pantry space.

The home has storage space everywhere including ample attic space.

You won't find many homes nicer than this one.  Get you offer in, it won't last. 

First public open house will be 7/24/10.

Contact Randy Prothero for showings:  808-384-5645

$620,000

Pacific Pacific Palisades Large Home

4 bedrooms, plus bonus room that can be used as a 5th bedroom. 

The 2nd floor master suite can be used as a seperate rental, with efficiency kitchen, living room and seperate entrance.

Home has a very large family room, pool table can stay.  This home is a must see.

For showings or open house schedule contact:  Randy L. Prothero  808-384-5645

$179,000

Valleyview - Melemanu E/605

2 bed/ 2 bath/ 2 covered parking

This unit is has a large covered lanai with a view.  It is ready to move and and can be easily shown.

Valleyview has an on-site property manager and security guards.  There is also a community pool and volleyball area.

Contact Randy for showings or open house schedule: 808-384-5645

For the last two years or more we have been warned that interest rates would be back up to 7% or 8% by many experts.  To my delight they are now even lower than when the warnings began.

How long will this last?  I don't believe anyone knows.  The experts have predicted wrong consistently.  The one thing we know for sure is that money is cheap.   Loans are not as easy to get as in the past, but if you have good credit they are still loaning money.

If you are looking to purchase a home, find a top real estate agent and an experienced loan officer.  If you are looking to purchase on Oahu please look me up.  I would be honored to help guide you through the process.

If you are looking in other parts of the country, I can help pre-screen agents to assist you in finding a top agent for that market.

Good Luck and Happy House Hunting!

Below are sales activity for the month of June 2010 compared to the previous month and the same month last year. This covers resale home for Honolulu County (Oahu).  The effects of the home buyer tax credits are now wearing off.  July and August will give is a much clearer picture of how the market is actually doing.

*Median price means half the prices were above and half below the given price.  Data was taken from the Honolulu Board of REALTORS®.  It is deemed to be accurate, but not guaranteed.

Last Monday evening I taught me first CE class for Hawaii real estate agents.

The Class was the new Core B mandatory class, which covers new law changes and a refresher on Fair Housing.  We had a small group, but it was a great opportunity to test out my material.  This Saturday, July 17, 2010 I will be teaching that class in the morning followed by a new three hour Elective Class: "Getting Purchase Contracts Accepted and to Closing."

 Upcoming July Class Schedule:

Fri. July 23, 2010   10:00am to 12:00pm  -  Core B: Real Estate Law and Don't Discriminate (Kailua Class)  -  Guild Mortgage (Upstairs from California Pizza Kitchen)  -  609 Kailua Road, Suite 200  Kailua, HI  96734

Fri. July 23, 2010   10:00am to 12:00pm  -  New Elective: Getting Purchase Contracts Accepted and to Closing  (Kailua Class)   Guild Mortgage (Upstairs from California Pizza Kitchen)  -  609 Kailua Road, Suite 200  Kailua, HI  96734

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New 2010 Core B:    "Real Estate Law and Don't Discriminate"

• Part 1 of this course covers new legislation that will have an impact on your real estate practice. The 2nd part addresses discrimination in housing.  (2 credit hours)

 New Elective "Getting Purchase Contracts Accepted and to Closing"

• This new course teaches techniques for preparing, presenting and negotiating purchase contracts that get accepted and all the way to closing.  Part 1 addresses the process from the eyes of a buyer's agent.  In part 2 we change hats and look at the process from the eyes of a listing agent.  (3 Credit Hours)

 To register online:  www.RussGoodeSeminars.com

For more information on other classes and times:  www.HawaiiRandy.com/CE