Surveys indicate many people do not know what their homeowner insurance policy covers.  So you are perfectly clear, pull out your policy and read through it.  It’s tedious, but it’s worth a few minutes of your time and will give you peace of mind.  This step may also help you take action and obtain needed coverage that isn’t in place now.  Most policies do not cover the items listed below:

• Flood Insurance
• Cars, motorcycles and boats
• Damages due to a break in the water line on your property
• Damages due to a break in the sewer line on your property
• Earthquake damage
• Mold damage
• Termites or other infestation damage

Experts recommend you add coverage if you acquire valuable possessions or make major home improvements.  If you own a trampoline or pool, you may need to increase your liability coverage.  If you own valuable jewelry, you may also want to add an additional floater to cover the items not covered by your basic homeowner’s policy.

For more information about homeowner’s insurance, visit the consumer education website InsureUonline.

Please consult your Honolulu insurance professional if you have questions.  Contact Michael Zimmerman if you need a referral to a reliable insurance agent.

Identity theft is a growing problem in Honolulu and the rest of the United States.  Thieves steal personal information; many use it for their personal gain and others simply sell it to other criminals.  Typically, they use others’ personal information to obtain cash and credit cards.  In Part 1 of this series, we’ll discuss the thieves’ extensive use of the internet and other ploys they use to steal your private information.  In Parts 2 and 3, we’ll cover some preventive measures you can take to protect your personal information.

Phishing - This is accomplished by sending an email to you claiming to be from your bank, PayPal or eBay, or another online service.  The email asks you to click on a link and enter your personal information.

Spoofing and Pharming - Thieves redirect legitimate website traffic to an imposter site, where they ask unwitting victims to enter personal information.

Spyware - It is very common for people to mistakenly download illicit software and accidentally click on a pop-up.  This opens the door for thieves to steal your credit card numbers and passwords by accessing information on your computer hard drive.

Vishing - ”Voice phishing” is facilitated by using Voice over IP to gain access to your personal and financial information.

Bank card skimming - Thieves add a fake ATM slot and camera to a legitimate cash machine so they can copy your account information.  Servers at restaurants can also be armed with a portable card reader.

If you are concerned that you are an identity theft victim, go to the Federal Trade Commission Identity Theft website for more information.

Read Part 2 (coming soon)

Read Part 3 (coming soon)

At certain times, your home is expensive to maintain.  With this in mind, ideas designed to increase your home’s value–without breaking the bank–are listed below.

• Hiring a professional home inspector may be the most cost-effective thing you ever do.  This is especially true if the inspector finds a small problem that could become something much bigger down the line, such as termite infestation or a water leak.
• Immense value is added by freshly painting the interior.
• Improve your home’s air quality by replacing old carpeting, or removing it entirely if you have hardwood floors underneath.
• Landscaping improvements in the form of large shade trees make homes more desirable.  They may greatly reduce your cooling costs as well.
• Replace old fixtures such as an old ceiling fan with an updated model.  It will make your home more pleasant on hot days and will appeal to buyers during the selling process.
• By adding a small luxury item such as a water filtration system, you add value and save money since you will no longer need bottled water.
• Energy efficient homes that feature items such as special windows or programmable thermostats save money and are a marketable asset if you sell your home.

Summary
It’s sad to say, but the Moana Pacific Association of Apartment Owners has entered into some form of litigation with the developer.  While this is relatively common in new buildings, it is nonetheless cause for concern in the short term.  Loans normally available through Fannie Mae and Freddie Mac are unavailable, forcing buyers to borrow from local banks at a higher interest rate.  This will likely slow the sales rate and may force sales prices lower.

The chart below depicts the number of sales recorded each month vs. the number of apartments available for sale at the end of each month.  In the last six months, Moana Pacific averaged about 1.5 sales per month and if that pace continues, it will take 20 months to sell the 30 homes currently available.

Moana Pacific Listings vs. Sales

Take a look at the sales statistics below.  Seven apartments sold in the last 90 days and in this market, that’s very encouraging.  These owners were motivated; they didn’t set a high price and suffer through several months of inactivity.  They set a price that today’s picky buyers perceived to be a good value and 5 of the 7 sold in 20 days or less.  Contrast that with the homes that are still for sale (most were on the market long before the ones that just sold).  These owners have been waiting 100, 200 or even 300 days and they still don’t have a buyer.  Specific sales statistics are listed below.

Moana Pacific Condominium
1288-1296 Kapiolani Blvd., Honolulu, HI 96814
Built:  2007

Schools
Elementary School:  Kaahumanu
Middle School:  Central
High School:  McKinley

Location
Conveniently located a few blocks from the Ala Moana Shopping Center and the Nordstrom store located on Kapiolani Blvd.

Feature
Co-located with the Honolulu Design Center, Stage Restaurant and Amuse Wine Bar.

Availability
Apartments in the building:  720
Apartments available for sale:  30
Average days on market to date:  143
Apartments listed for sale in the last 30 days:  1
Months of inventory available:  20.0

Sales
Apartments under contract in escrow:  5
Apartments sold in the last 90 days:  7
Average days on market:  35
Sales Price / List Price:  96%

What else would you like to know about sales activity at Moana Pacific?  Please visit my web site to view Moana Pacific apartments for sale or conduct your own Honolulu home search.  If you’re thinking of selling your home and don’t want to wait six months for a sale, contact Michael Zimmerman for a no obligation consultation.

“If all the folks in the United States would do the few simple things they know they ought to do, most of our big problems would take care of themselves.”

- President Calvin Coolidge

The U.S. Government is doing all it can to make the dream of homeownership a reality for many first time home buyers.  For those of you sitting on the fence, the 2009 tax credit is there for the taking, but time is running out.  Additionally, interest rates have been rising for the past month and are not likely to reach 4.5% again.  So, don’t wait any longer.  Here are a few first time home buyer tax credit questions and answers.

Background:  Congress passed legislation that grants a tax credit of up to $8,000 to first time home buyers.  This was done to stimulate the housing market and get the economy moving sooner rather than later.

Q:  Who qualifies?
A:  First time home buyers who purchase homes between January 1, 2009 and December 1, 2009.  A “first time home buyer” may not have owned a residence during the three years prior to the purchase.

Q:  What property is eligible?
A:  The tax credit may be applied to primary residences which include single family homes, condominiums, townhomes and co-ops.

Q:  What is the credit limit?
A:  The maximum credit is $8,000.  The tax credit is determined by two factors:

• The price of the home.  The credit is equal to 10% of the purchase price of the home, but no larger than $8,000.
• The buyer’s income.  Single buyers with incomes up to $75,000 and married couples with incomes up to $150,000 may receive the full credit amount.

Q:  If the Buyers’ income exceeds these limits, can he/she still receive the credit?
A:  Some buyers may still be eligible for the credit.  The credit decreases for single buyers who earn between $75,000 and $95,000 and for buyers filing jointly who earn between $150,000 and $170,000.  The amount of the tax credit decreases as income approaches the maximum limit.  Home buyers earning more than the maximum qualifying income ($95,000 for singles and $170,000 for couples) are not eligible for the credit.

Q:  Must the tax credit be repaid?
A:  As long as the buyer(s) occupy the home for three years or more, the tax credit need not be repaid.  However, if the property is sold during the three year period, the credit will be recouped by the government on the sale.

Buying your first home is a large commitment.  You deserve nothing less than top-notch service, so don’t settle for less.  Contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.

Since the children are out of school and many families are going on vacation, homeowners should consider alternatives to protect their home from a burglary while away.  The most obvious things to do are stop the mail and newspaper delivery, lock the house up tight and leave a light on.  The following ideas take things a step further.

• If you are going away on an extended trip, you should consider asking a neighbor to pick up your mail and newspaper and bring them into your home each day.
• Invest in a couple of timers.  You can set them to turn a light on and off each day as well as turn on a radio or stereo.
• Hire a neighbor’s responsible teen or ask a friend to house sit.  Alternatively, work out a system where you cover your neighbor’s home when they go away and they look after yours while you’re gone.
• If your neighborhood does not have a “neighborhood watch” program, be the one to start it.
• Consider purchasing a home security system to ensure your home is regularly monitored.

For more information about home security tips, go to Crime Doctor for additional ideas.

First, a disclaimer.  Foreclosure is a very complicated process with far-reaching results.  I cannot stress this enough:  consult your lenders, your attorney, your CPA and your real estate professional to ensure you fully understand all ramifications of the options discussed below.

In the first part of this post, I wrote that some homeowners have faced difficult choices as the economy declined.  Rather than lose your home through a contentious bank foreclosure, some of the options below may be a better choice, depending on your individual situation.

Forbearance or Repayment Plan - the homeowner negotiates repaying back payments over a period of time.  Usually, the owner makes the current payment as well as a portion of the overdue payments.  Most lenders require homeowners to be qualified for this option.

Deed in Lieu of Foreclosure - also known as a “friendly foreclosure” because it allows a homeowner to return the property to the lender.  It requires lender approval and the homeowner must vacate the home.

Bankruptcy - if you have non-mortgage debts whose payments are causing you to fall short of paying the mortgage, a personal bankruptcy may eliminate some or all of these debts.  However, bankruptcy can be very costly and is not as easy to accomplish as it once was.

Read Part 1

For many, especially those who live in sunny Honolulu, the concept of “going solar” is incredibly inviting.  However, we need to thoroughly understand the technology before we entirely cast off the powerlines.  A few interesting things about “going solar” are below:

• You can calculate how much solar energy capability your home will need by reviewing your utility bill.
• You may supplement your power needs or divorce yourself from the power grid completely.
• Photovoltaic is the method most solar cells use to convert sunlight to energy.  Your power requirements will determine what size photovoltaic modules you need.
• Night time darkness and cloudy days reduce the amount of energy your system generates.  You may install a battery storage system to supplement these known production down times.
• If your system generates more power than you need, some utility companies will buy the excess.
• Your system must be inspected by the local utility company to ensure it is safe for utility linemen.  The utility want to be sure that during a power outage, your system was installed properly and that it will have no power running through the lines.
• A solar panel system may cost more than $30,000.  This is a large up-front expense, but systems are coming down in price.  Don’t forget that solar systems will save expensive electricity over your lifetime and be sure to investigate state and federal tax credits that may help defray your initial installation costs.