Hawaii Real Estate Report Newsletter

February Real Estate Marketwatch

O’ahu home sales down 46.5 percent

O’ahu’s housing market downturn intensified in January with a 10.1 percent decline in the median price and a nearly 50 percent drop in the number of sales for previously owned single-family homes.

The median price, which slid to $539,500 last month from $600,000 a year earlier, was the lowest for any month since February 2005, according to data from the Honolulu Board of Realtors.

The decline in sales – a 46.5 percent drop to 122 transactions – was so steep that the last time there were fewer sales for any month was February 1998 when only 115 homes sold. The next lowest mark was 109 sales in January 1997.

Read the rest of the article here

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Homebuyers: How To Save Thousands of Dollars When You Buy

“When you analyze those successful homebuyers who have the experience to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge.”

If you’re like most homebuyers, you have two primary considerations in mind when you start looking for a home. First, you want to find a home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.

When you analyze those successful homebuyers who have been able to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge. Although your agents negotiating skills are important, there are three additional key factors that must come into play long before you ever submit an offer.
These Steps Will Help You Save Thousands When You Buy a Home

Make sure you know what you want . . . As simple as this sounds, many home buyers don’t have a firm idea in their heads before they go out searching for a home. In fact, when you go shopping for a place to live, there are actually two homes competing for your attention: the one that meets your needs, and the one that fulfills your desires. Obviously, your goal is to find one home that does both. But in the real world, this situation doesn’t always occur.

When you’re looking at homes, you’ll find that you fall in love with one or another home for entirely different reasons. Is it better to buy the 4 bedroom home with room for your family to grow, or the one with the big eat in kitchen that romances you with thoughts of big weekend family brunches? What’s more important: a big backyard, or proximity to your child’s school? Far too often people buy a home for the wrong reasons, and then regret their decision when the home doesn’t meet their needs.

Don’t shop with stars in your eyes: satisfy your needs first. If you’re lucky, you’ll find a home that does this and also fulfills your desires. The important thing is to understand the difference before you get caught up in the excitement of looking.

Find out if your agent offers a “Buyer Profile System” or “Househunting Service”, which takes the guesswork out of finding just the right home that matches your needs. This type of program will cross-match your criteria with ALL available homes on the market and supply you with printed information on an ongoing basis. A program like this helps homeowners take off their rose colored glasses and, affordably, move into the home of their dreams.

To help you develop your homebuying strategy, use this form:

What do I absolutely NEED in my next home:

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What would I absolutely LOVE in my next home:

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How Sellers Set Their Asking Price

For you to understand how much to offer for a home you’re interested in, it’s important for you to know how sellers price their homes. Here are 4 common strategies you’ll start to recognize when you begin to view homes:
1. Clearly Overpriced:

Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to over inflate the value of your home. This is done far too often, with many homes that are priced 10- 20% over their true market value.

This is not in your best interest, because in most cases the market won’t be fooled. As a result, your home could languish on the market for months, leaving you with a couple of important drawbacks:

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your home is likely to be labelled as a “troubled” house by other agents, leading to a lower than fair market price when an offer is finally made
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you have been greatly inconvenienced with having to constantly have your home in “showing” condition . . . for nothing. These homes often expire off the market, forcing you to go through the listing process all over again.

2. Somewhat Overpriced:

About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated (after all, there’s a lot of emotion caught up in this issue), OR you’ve left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received
3. Priced Correctly at Market Value

Some sellers understand that real estate is part of the capitalistic system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time frame and very close to the asking price.
4. Priced Below the Fair Market Value

Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast – usually in a few days – at, or above, the asking price. Be cautious that the agent suggesting this method is doing so with your best interest in mind.

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FORECLOSURES

Learn about pre-foreclosures, bank foreclosures and real estate auctions right here in Hawaii.

Right now we are seeing foreclosures at all time highs. We are seeing home values decrease and properties over-leveraged. Could this be the time for you to buy a foreclosed property? Deciding to invest in foreclosures is an important step, and investing in a foreclosure may be right for you. Regardless, take the time to prepare yourself for the process of purchasing a property in foreclosure. It is important to learn the risks and rewards associated with the foreclosure property market.

We have put together a very affordable and useful information package to give you descriptions of what you can expect.

There are many aspects of foreclosures that you need to consider. Before you buy, get the facts right here

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Thinking of selling your home?
27 Quick & Easy Fix Ups to Sell Your Home Fast and for Top Dollar

Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. And once you have made that decision, you’ll want to sell your home for the highest price in the shortest time possible without compromising your sanity. Before you place your home on the market, here’s a way to help you to be as prepared as possible.

To assist homesellers, a new industry report has just been released called “27 Valuable Tips That You Should Know to Get Your Home Sold Fast and for Top Dollar.” It tackles the important issues you need to know to make your home competitive in today’s tough, aggressive marketplace.

Through these 27 tips, you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.

In this report you’ll discover how to avoid financial disappointment or worse, a financial disaster when selling your home. Using a common-sense approach, you get the straight facts about what can make or break the sale of your home.

You owe it to yourself to learn how these important tips will give you the competitive edge to get your home sold fast and for the most amount of money.

Order your free report NOW.

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________________________________________________________________________________________________________________________________________ The Hawaii Real Estate Report advantage. Contact us if you have questions on any of the items below:

* New way to build with Autoclave Aerated Concrete: termite proof, fireproof, soundproof, hurricane and earthquake resistant at affordable prices
* Affordable condos in town at: www.2765Kapiolani.com
* Do you know of anyone looking to buy or sell a home soon? Let us know and you could earn thousands of dollars through our referral program
* FREE Real Estate Pre-licensing Class – Contact us for more information
* Want to learn about foreclosures in Hawaii? Click here
* We’ll contribute 25% of our commission to your favorite charity

Watch our show: The Hawaii Real Estate Report on OC16 – Saturdays @ 9:30 PM
Repeats: Sunday 3:30AM & 12:30 PM; Monday 11:30 PM; Tuesday 5:30AM & 9:30 AM; and Friday 11:00 AM
www.HawaiiRealEstateReport.com

Jeff Orig (Realtor-Associate) & Scott Sakata (Realtor)
Abe Lee Realty
1585 Kapiolani Blvd., #1533
Honolulu, HI 96814
Phone: Toll Free 1-888-587-9362
Fax: 808-356-0414
Email: team@hawaiirealestatereport.com

Jeff Orig, RA – Mobile Phone: 808-561-1651
Scott Sakata, R – Mobile Phone: 808-228-4916