Michael Zimmerman just listed apartment 3203 in the Imperial Plaza Condominium for sale. 

ONLY THE VERY BEST

Imperial Plaza Condominium
725 Kapiolani Blvd. #3203
Honolulu, HI 96813
MLS #1011284

View the 4-page Home Brochure

Virtual Tour 

(more photos below)

Perched high above the city, this home offers breathtaking, unobstructed, 180 degree daytime views of rainbows, ocean, harbor, city and the Ko’olau Range.  The next show begins as sunset approaches, creating a kaleidoscope of colors that change with each cloud that is gently moved across the sky by evening trade winds.  As the sun sets into the ocean, that illusive “green flash” is occasionally observed.  For an encore, city lights begin their dazzling appearance, only to be outshined by the moon and stars shimmering across the ocean.  With TWO extremely private outdoor lanais, one is able to enjoy a front-row seat for these truly spectacular events.

The design elements of the building make it feel like a home instead of a condominium.  The apartment is laid out in a way that creates entertainment areas that are completely separated from private living areas.  10 foot ceilings allow for massive windows and expansive views with warm natural light.  Even the laundry area is tucked away, out of sight.  The quiet and private design coupled with generous amenities provide the pinnacle of condo living.

Meticulously renovated in 2005, no detail was overlooked.  This home’s functionality and aesthetics were maximized by utilizing a warm color palate, high-end stone, iridescent glass, modern lighting, top of the line appliances, beautiful flooring and luxurious custom cabinetry.

The Imperial Plaza is a gorgeous copper-colored, art-deco inspired complex that consists of The Tower and The Townhouse (residential areas) and The Galerie (commercial offices and shops).  Located in Kakaako, the Ala Moana Shopping Center, Ward Centers, Downtown, Chinatown, Restaurant Row, Aloha Tower and Waikiki are all just minutes away.  The residential lobbies are beautifully furnished, have soaring 30 foot ceilings, amazing water features and original artwork designed by a famous local artist.  The recreation deck includes swimming pool, wading pool, hot-tubs, sauna rooms, clubhouse, barbeque grills, picnic tables and a dramatic water feature.

Don’t miss your unique opportunity to own this finely crafted two bedroom condominium.

• Stunning sapphire and turquoise blue ocean views
• Spectacular views of the harbor, city and Punchbowl
• 10 foot ceilings create open and spacious feeling
• Large windows and natural light brighten each room
• Master & guest baths have full tub and standup shower
• Master suite large enough for king-sized bed
• Gorgeous laminate floors
• Three central air conditioned zones
• Both bedrooms have abundant closet space
• Plenty of in-home storage
• Huge exterior storage locker
• Living area approximately 1308 sq. ft.
• Two private lanais total approximately 212 sq. ft.
• Two covered, assigned parking stalls

Please contact Michael Zimmerman if you have a specific question or visit my Featured Properties web page to learn more about this fine home.

This information is provided as a courtesy, is not a warranty and should be independently investigated by Buyers.  This information is deemed reliable, but not guaranteed.

How do you judge the validity of the Seller’s Disclosure you receive when buying property?  Here are some questions to consider when reviewing the disclosure:

1.  Is every question answered? 
All too often, sellers fail to answer all 90 questions.  Consider these possibilities:

• Questions may have been skipped as an honest mistake.
• Questions may have been skipped to avoid providing information.
• Questions may have been skipped because they are confusing and the owner truly doesn’t know how to answer.  This is a real possibility since many of the questions were written by attorneys and are not easily understood.

2.  Are there “yes” answers? 
Answering “yes” requires the owner to provide additional information on page 4 of the disclosure.  Did they provide the required amplifying information?  Was that information clear and complete, or did it avoid answering the question directly?

Example:  Question 69.  Has the roof been repaired or replaced?

Poor answer:  Yes, repaired in 2009.

Better answer:  There was a small leak in 2009.  A licensed contractor, Mr. XX, removed defective shingles, repaired the underlying roof and installed new shingles.  A 3 ft. by 2 ft. area in the attic was made slightly wet by the leak and was dried and treated with an anti-bacterial/anti-fungal solution to prevent growth.  Copies of the repair receipts and warranty are attached to this disclosure.

3.  Does the disclosure lack “yes” answers? 
If so, you should ask yourself if the owners took their disclosure responsibilities seriously.

Is it possible that no problems have been experienced with any of the appliances or plumbing?  Maybe, if the appliances are just a few years old.  But, who installed the new appliances?  If the current owner installed them, this should be noted on the disclosure.

4.  Are many of the questions answered “not to my knowledge”? 
Again, if so, ask yourself if the owners took their disclosure responsibilities seriously.

Example:  Question 58.  Is this property exposed to other types of recurring excessive noise (e.g. night club, school, coqui frogs, etc.)?  In my opinion, “not to my knowledge” is not a sufficient answer.  Excessive noise is either present or it’s not.  The owner should know, unless they’ve never visited the property.

5.  What do you do if you receive an incomplete Seller’s Disclosure? 
You may submit more probing questions to the seller that deal with what you perceive as problem areas.  You may or may not receive better answers, but it’s worth trying.  If time still remains in your home inspection period, you may wish to take another look at certain areas that concern you.

Many folks are waiting, trying to perfectly time the real estate bottom.  Perhaps, one morning, the Honolulu Advertiser headlines will read “THE BOTTOM IS HERE:  NOW IS THE TIME TO BUY”.  Perhaps not.  By the time that announcement comes, the bottom will have come and gone.  You can only be sure of the bottom well after it’s already occurred.

A great analogy to the bottom of the real estate market is a yo-yo.  Take a yo-yo in your hand and use it.  Can a person grab the yo-yo at the exact moment it hits bottom every time?  Chances are a person will grab it just before it hits bottom or just after; rarely at the exact bottom.  Real estate works the same way.  If people knew the exact time to buy stocks, real estate or any other investment, no one would ever have a financial worry.

For those who believe that real estate is a good way to attain wealth, now is a reasonable time to buy.  Interest rates  won’t be low forever and each 1/2% increase in rate reduces your purchasing power by 5%.  Mortgage rates have been low for quite some time, but they can change quickly.  Don’t look back at this time and say to yourself, “if only I had bought then.”

Hawaii’s standard home purchase contract and Hawaii State law requires a Hawaii Seller Real Property Disclosure Statement.  This disclosure requires the seller to fully and accurately disclose in writing to the buyer any fact, defect, or condition, past or present, that would be expected to measurably affect the value of the property to a reasonable person.   Be advised, if you’re purchasing REO (Real Estate Owned) property, the lender often will not provide a Seller’s Disclosure.

Buyers should allow for the possibility that some owners may withhold material facts.  They may simply forget that they repaired a roof leak five years ago.  Must that be disclosed, even if the repair is complete?  Yes.  What is the best way to determine the issues that exist with a home?  Hire a reputable home inspector.  It’s that simple.

A home inspection can make or break a deal, but it is extremely important for a home buyer to know what issues exist with the home they are purchasing.  Important issues like mold, a leaky roof and termites may be very expensive problems and facing them head on will benefit the buyer in the long run.

Contact Michael Zimmerman for a referral to a reliable home inspector.

Real estate that is selling in most places is selling because IT IS PRICED RIGHT.  People are buying real estate that they view as priced appropriately.  If a home is affordable and is appealing to most buyers (clean, uncluttered, in good repair, etc.), it will sell. 

Real estate that is not selling is property owned by people who are having a hard time letting go of what they think their home is worth or who will lose money if they sell at the market price.  The reality of realty is that home values are not nearly what most people thought they would be when they purchased their homes, whether they bought at the height of the market or while market prices were climbing five to ten years ago.

Are you curious about what your home is worth in today’s market?  If so, contact Michael Zimmerman for a free consultation.

Some people say it is not wise to think of your home as an investment.  Whether you choose to think of your home as an investment or not, bear in mind it’s the largest asset owned in most households.  There are many things to consider when buying a home and getting to know the neighborhood you wish to buy in is quite important.  Clearly, many factors affect home appreciation, but if you do your research, selecting your home properly may increase your chances of earning a better return if you decide to sell at some point in the future.

Take some time to research the neighborhoods under consideration.  Aside from knowing the schools and amenities that are available, scrutinize the property price levels.  Do some streets hold more value?  Is one edge of the neighborhood closer to a more upscale neighborhood or is it closer to a less desirable neighborhood?  Traditional thinking says purchasing the least in the best neighborhood gives you the greatest return as each time a better home sells, your value rises as well.

Although inventory levels are lower than they were a year ago, there are still many good Honolulu condos and homes for sale.  It’s definitely in your best interest to personally investigate the neighborhood before you buy.

Sign up for a free monthly Honolulu Real Estate Market Report via email.  This report features graphs and numeric tables showing the trends in:

• number of single family home and condo sales
• median sales prices of single family homes and condos
• single family home and condo days on market (how long it takes to sell)
• sales figures for all Oahu neighborhoods
• inventory of single family homes and condos for sale

NOW Is the Time to Make Your Move.  The 2009 First Time Home Buyers Tax Credit is expiring April 30, 2010.  This tax credit was expanded for the benefit of qualified home buyers (those who have not purchased a home within the last three years):

• Allowed home buyers more time into the spring house-buying season to find their home, get loan approval and close the transaction.
• The income limits were raised from $75,000 to $125,000 for single buyers and $125,000 to $225,000 for married couples.

With attractive Honolulu home prices and historically low mortgage rates, this is a good time to make your move.  If you didn’t find the right home in 2009, you still have time to take advantage of this opportunity.  Don’t delay; you must identify your home and have a binding purchase contract signed by April 30, 2010. 

Call Michael Zimmerman at 808-457-9683 to set up a free consultation to help you explore and maximize this opportunity.

The Federal National Mortgage Association, also known as Fannie Mae, is offering a 3.5% incentive** for buyers who purchase a Fannie Mae-owned home between January 28 and April 30, 2010.  Buyers may receive up to 3.5% of the final sales price for:

• Closing costs
• The purchase of new Whirlpool® appliances by Fannie Mae; or
• A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.

To be eligible for this incentive:

• Offers must be accepted on or after January 28, 2010
• Property sales must close before May 1, 2010
• Buyers must be owner-occupants (excludes investors)

**Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.

There process of buying a home from Fannie Mae is different from that of buying from a private citizen.  These Frequently Asked Questions provide more detail.

An article in Newsweek titled If You Don’t Buy a House Now, You’re Stupid or Broke reminded me of a blog post I wrote in June 2008 titled Should I Wait for Honolulu Home Prices to Drop?

The main point of both articles is this:  interest rates may have a greater impact on what you ultimately pay for a home in the long run than small changes in the initial purchase price.  Put another way, a .50% rise in interest rates costs you more than the $10 or $20 thousand you might save by waiting to purchase your home.  Also, don’t forget to factor in the potential loss of the tax credit offered by the government.

Looking at it from the buyer’s affordability perspective, a trusted Honolulu mortgage advisor wrote, “if rates go up by .50%, [the buyer] can afford a property that is 5% lower in price.”

Each individual home buyer’s situation is different and he/she must decide what is best for him/her.  If you’d like a free consultation or referral to a great mortgage professional, please contact Michael Zimmerman.

A traditional method to determine if the Honolulu real estate market favors the buyer or seller is to look at the number of months of inventory remaining.  A conventional thumb rule states that if the number of months of inventory remaining is greater than 6, we’re in a buyer’s market.  Less than 6 is a seller’s market.

What is the number of months of inventory remaining?  Simply put, it is a measure of how long it will take to sell all real estate currently on the market in a particular category.  Examples of categories include:  Oahu Single Family Homes priced above $1 million, Condos in East Oahu, Ko’olani condos, etc.  The months of inventory calculation is straight forward:  number of homes for sale divided by the number of sales in a given month.

Examples (using Dec 2008 and 2009 sales)

1.  Oahu Single Family Homes priced above $1 million
2008 – 554 homes for sale divided by 21 sales = 26.4 months of inventory
2009 – 329 homes for sale divided by 31 sales = 10.6 months of inventory

2.  Condos in East Oahu
2008 – 234 condos for sale divided by 14 sales = 16.7 months of inventory
2009 – 112 condos for sale divided by 30 sales = 3.7 months of inventory

3.  Ko’olani condos (1177 Queen Street in Kakaako)
2008 – 27 condos for sale divided by 4 sales = 6.8 months of inventory
2009 – 15 condos for sale divided by 3 sales = 5.0 months of inventory

The attached Months of Inventory Remaining PDF file shows the inventory remaining for several categories of Oahu single family homes and Honolulu condos for sale.  You can see that the months of inventory remaining fell dramatically in 2009, indicating buyers have less to choose from and therefore, less power in the marketplace.

 
Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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Michael Zimmerman just sold the One Waterfront Towers condominium with this stunning view after receiving several offers.

Sold for $505,000 Fee Simple

Two words:  SIMPLY SENSATIONAL

One Waterfront Towers Condominium
425 South Street Mauka/2302
Honolulu, HI 96813
MLS #2913492

View the 4-page Home Brochure

Relax and enjoy stunning sapphire and turquoise blue ocean views from this serene, elegant home.  The private lanai is perfect for entertaining your guests, unwinding while reading or enjoying the evening sunset.  The impeccable apartment features a wide range of upgrades and is ready for immediate move in.

This magnificent apartment is in impeccable condition and features several upgrades such as granite countertops in the kitchen and bathroom, refreshed kitchen appliances, front loading washer and dryer, enclosed shower, tiled floors, closet organizers and more.

• Stunning sapphire and turquoise blue ocean views
• Scenic views of the harbor, mountains and downtown
• Dine at sunset on your private lanai
• Grand open living space
• Floor to ceiling windows
• Exquisite tiled floors
• Dining area bar may be used as an eating area
• Ample in-home storage
• Living area approximately 804 square feet
• Lanai approximately 130 square feet
• One covered, assigned parking stall
• Includes one year Home Warranty

Are you looking for your very own high floor condo with a spectacular view?  Contact Michael Zimmerman or visit my web site to perform your own specific Honolulu condo search.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
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My wife and I have lived in the Kakaako area for three and a half years and we love it.  Here are the top 10 reasons we think you should consider living here too.

1.  Several diverse living choices ranging from new to more established luxury condominium buildings.  Examples include Hawaiki Tower, Hokua At 1288 Ala Moana, Ko’olani, Moana Pacific, Nauru Tower and One Waterfront Towers.

2.  Several health care providers are close by such as Straub Hospital, Kapiolani Medical Center and Queen’s Medical Center.

3.  Healthy recreation areas at your doorstep include Ala Moana Beach Park, Magic Island and Kakaako Waterfront Park.

4.  Easy and convenient access to H-1 (both east and west directions) and major bus lines.

5.  Wonderful restaurant choices range from fine dining to local mom & pop eateries.  Additionally, terrific shopping is available at the Ala Moana Shopping Center, Ward Centers and the Nordstrom store located on Kapiolani Blvd.

6.  Great beach and surfing access at nearby Ala Moana and Waikiki beaches.

7.  Entertainment and the arts are here.  The Blaisdell Center, Concert Hall, Exhibition Center, Honolulu Academy of Arts and Ward 16 Theaters are just minutes away.

8.  Many interesting adjacent neighborhoods to explore include Chinatown, Downtown, Makiki, McCully and Waikiki.

9.  Controlled growth.  The Hawaii Community Development Authority is developing the Ward Neighborhood Master Plan.

10.  Majestic mauka to makai views include Diamond Head, Punchbowl and the Ko’olaus to Honolulu Harbor and the Waikiki shore.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
Subscribe to Honolulu Real Estate and Community News

• First-time home buyers* who purchase homes between November 7, 2009 and April 30, 2010**.
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010**, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

*To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

**Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close the sale.

What is the credit amount?

The maximum credit for first-time home buyers is $8,000 and the maximum credit for current homeowners is $6,500.

How is the amount determined?

Each home buyer’s tax credit is determined by two additional factors:   the price of the home and the buyer’s income.

• Price – Credit may only be awarded on homes purchased for $800,000 or less.
• Income – Effective on November 7, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit.

Does the Tax Credit have to be repaid?

The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more.  However, if the property is sold during this three-year period, the full credit amount will be recouped on the sale.

Read the Home Buyer Tax Credit FAQ

Read the Home Buyer Tax Credit Change Summary


Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
http://www.michael-zimmerman.com
Subscribe to Honolulu Real Estate and Community News

Just about every person I speak with about real estate asks the same question:  have we hit bottom yet?  The following paragraphs answer that question with another question:  does it matter?

Whether Honolulu real estate hit bottom a few months ago or is going to bottom out a few months down the road, I think most people agree that we’ll see better times in the future.  I say this with conviction; it is still a buyer’s market in Honolulu real estate.

Here’s another relevant question to consider:  isn’t it better to buy near the bottom than miss it entirely?  This concept applies to more than just real estate; it also applies to most investments such as common stocks or mutual funds.

Consider what’s happening in the other 49 states.  Some markets are still on the way down, some are stabilizing and others are on their way back up.  Whether the market hit bottom a couple of months ago, is at the bottom now, or will hit the bottom in a couple of months, the next market top is a long way off.

I say again, Honolulu is a buyer’s market.  Property values are lower than they have been in 4-5 years.  Interest rates are still near all-time lows, but they won’t stay that way forever.  For all we know, the Honolulu real estate market might be more affordable today than it will be for many years to come.  Whether you are searching for a primary residence, a second home or income producing property, it is a great time to invest in real estate.

Contact Michael Zimmerman for more information.

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
http://www.michael-zimmerman.com
Subscribe to Honolulu Real Estate and Community News

In the first part of this series, we defined what a basic REO is.  In part 2, we’ll discuss some of the nuances you may encounter during an REO purchase.

Cash offer vs. Offer with financing – Usually makes no difference.  Net value (offer less survey cost, termite inspection cost, etc.) matters the most.  VA loan complications may make the offer less desirable.

Title Company - Use the company specified by the lender or buyer may be required to pay all (seller + buyer) costs.

Pre-Qualification – Many lenders require their own mortgage company to determine the buyer’s qualifications.  Buyer need not fund through that mortgage company.

Special Financing - The lender may have special programs.  Some pay a percentage of buyer’s closing costs or offer other incentives.

Tenants – If there is no lease, tenants usually have 90 days to vacate.  Tenants may be offered an incentive to move early.  Otherwise, leases must be honored.

Seller’s Disclosure Statement – Don’t expect one.

Sold As-Is – The lender usually means it.  Rarely will they fix anything.

Timeline – Expect lender to miss deadlines.

Time to Close – 45 days and time is of the essence.

Extensions – If the buyer needs to extend the closing date, a per diem rate may be charged for each day delay (typically $100/day).  The buyer may ask the lender to waive per diem.

FNMA property – FNMA may require the buyer to pay ALL seller closing costs.

Are you looking for REO property?  Buying a home or investment property is a large commitment and an REO purchase may be more complicated than you think.  Contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.

Read Part 1

Contributed by Michael Zimmerman
Direct:  808-457-9683
Michael@Michael-Zimmerman.com
www.Michael-Zimmerman.com
Subscribe to Honolulu Real Estate and Community News

In part 1, we’ll define what REO is.  In the second part of this series, we’ll cover some of the nuances encountered during an REO purchase.

REO (Real Estate Owned) is property taken back by the lender, typically after a foreclosure auction.  Foreclosure sales typically begin with a minimum bid that includes the loan balance, accrued interest, attorney’s fees and other costs associated with the foreclosure.  Many foreclosure auctions won’t receive a bid because if there was enough value in the property to satisfy these costs, the owner would have sold the property and paid off the bank.

An REO property sale and a short sale are not same.  REO is owned by the lender and the original home owner is out of the picture.  Also, an REO purchase is usually easier and faster than a short sale purchase.

The downside of REO property is that many of these homes are not well-maintained by the lender that owns them.  They may have been in poor shape when the lender acquired the homes because the original owner deferred necessary maintenance. 

What’s the upside?  The buyer may be able to purchase the property at a price slightly below market value.  In general, these homes will not be sold for 50 cents on the dollar.

Are you looking for REO property?  Buying a home or investment property is a large commitment and an REO purchase may be more complicated than you think.  Contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.

Read Part 2

Michael Zimmerman just sold the One Waterfront Towers condominium with this breathtaking view.  It was the first one bedroom sale in nearly three months.

Sold for $530,000 Fee Simple

Spectacular Ocean View

Two words:  STUNNING and IMMACULATE!

One Waterfront Towers Condominium
415 South Street Makai/2803
Honolulu, HI 96813
MLS #2906011

View the 4-page Home Brochure

One Waterfront Towers is one of Honolulu’s premier luxury condominiums.  The buildings are a landmark easily seen from Diamond Head to the Waianae Coast.  Conveniently located just minutes from Ala Moana Shopping Center, Ward Centers, Downtown, Chinatown, Restaurant Row, Aloha Tower and Waikiki.

Come home at the end of the day to a first class building with fantastic amenities that include exercise room, heated pool, sauna, whirlpool, tennis courts, BBQ area, covered parking and 24 hour security patrol.

• Beautiful views of the harbor, mountains and downtown
• Great open living space
• Entertain guests at sunset on your large, private lanai
• Bedroom enclosed to create a private suite
• Wider dining area bar may be used as an eating area
• Exquisite polished limestone floors
• Abundant in-home storage
• Floor to ceiling windows
• Living area approximately 804 square feet
• Lanai approximately 235 square feet
• One covered, assigned parking stall

Are you looking for your very own high floor condo with a spectacular view?  Contact Michael Zimmerman or visit my web site to perform your own specific Honolulu home search.

If you are a first time home buyer, you still have time to take advantage of a unique windfall provided by the U.S. government’s economic stimulus package.  A first time home buyer is generally defined as a taxpayer who has not owned another principal residence at any time during the three years prior to the date of purchase.  You may be entitled to a tax credit up to $8,000 if you purchase AND CLOSE on your home on or before November 30, 2009.

The tax credit is available to those who purchase their first home between January 1, 2009 and November 30, 2009.  The tax credit amount is the lesser of $8,000 or 10% of the purchase price.  To avoid possible abuse of this credit, it is only allowed for primary residences and will have to be repaid if this home is sold within two years of purchase. 

Closing periods can take up to 60 days, so it would be wise to have an accepted contract on your home no later than October 1, 2009.  Be advised, some purchases may take longer than 60 days to close, so don’t wait.  This gives you 61 days from today to find your home.  If you manage to meet the IRS’ criteria, all you have to do to claim the credit is file IRS Form 5405.

For more information about this credit, please visit the IRS web site.

To see if you qualify from an income perspective, read more about the IRS’ income limitations.

Do you believe it’s only a matter of time until Hawaii home prices crash as prices did in California?  Well, you’re not alone.  In the last six months, I have spoken with dozens people who believe Hawaii real estate prices will decline significantly.

Paul Brewbaker is the Senior Economic Advisor to Bank of Hawaii and his market analysis indicates Hawaii has more similarities than ever with Mainland real estate trends.  Brewbaker believes the real time flow of information over the internet has removed the traditional Hawaii-California market time lag.

Brewbaker reports in the last cycle, California home building peaked in the mid 80s and bottomed in the early 90s.  Hawaii home building peaked in the early 90s and the market bottomed later in the decade.  In the current cycle, California and Hawaii peaked at the same time.  Near the end of 2005, prices in both states and the entire nation declined together.  Brewbaker said, “The peak in values was synchronized, as was the increase in inventory and the decrease in demand.  It all happened at the same moment in time.  So, to reassure the people of Hawaii, there is no lag – and no reason to be sitting around waiting for things to get bad.”

If you’ve been putting off your home or investment property buying plans, delay no longer.  Interest rates are near all-time lows and the first time homebuyer credit is available until November 30, 2009.  Don’t miss this unique opportunity to purchase when prices and interest rates are so low.  Contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.

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.

As I wrote in parts 1 and 2 of this series, government mortgage loans are becoming more and more popular because funds from conventional sources are very hard to obtain.  In the final part of this series, we’ll highlight Rural Development mortgages provided by the U.S. Department of Agriculture (USDA).

Here are the major points of a USDA mortgage loan:

• No down payment required, 100% financing is possible
• 2% USDA funding fee may be financed
• Loan limits vary
• No mortgage insurance is required
• NOT limited to first-time homebuyers
• Owner occupants only (no loans on second homes or investment properties)
• Minimum credit score is 620
• Cash reserves are not required
• Maximum income limited to $109,000 in Honolulu for a family of 1-4
• Maximum income limited to $144,400 in Honolulu for a family of 5-8
• Home must be in a rural area (not vacant land)
• Subject to Federal funds availability

Part 1:  FHA Loans

Part 2:  VA Loans

Please consult your Honolulu mortgage professional if you have questions.  Contact Michael Zimmerman if you need a referral to a great mortgage advisor.

As I wrote in part 1 of this series, the Nation’s financial crisis caused several liberal sources of home financing to disappear.  No one knows if they will return.  Today’s complex loan guidelines make conventional loans more difficult to obtain, so government loans are becoming a more popular source of mortgage funds.  In part 2 of this series, we’ll cover loans provided by the Veteran’s Administration (VA).

Here are the highlights of a VA mortgage loan:

• For veterans and service persons only
• No down payment required, but if made, 100% of the down payment may be a gift
• Maximum loan amount is $783,750
• No mortgage insurance is required
• Owner occupants only (no loans on second homes or investment properties)
• Minimum credit score is 620
• VA funding fee paid at closing and may be financed
• Cash reserves are not required
• Condos must be on the FHA or VA Approved Condo List
• There are no condo owner occupancy requirements

Part 1:  FHA Loans

Part 3:  USDA Loans

Please consult your Honolulu mortgage professional if you have questions.  Contact Michael Zimmerman if you need a referral to a great mortgage advisor.

The Nation’s financial crisis caused several liberal sources of home financing to disappear in a very short time.  Those sources may return some day, but they’re gone, at least for the near future.  Loan qualification guidelines are more difficult and complex than ever and down payments required to get the best interest rates on conventional loans are much higher than they were six months ago.  Consequently, government loans are becoming a more popular source of mortgage funds.  In part 1 of this series, we’ll cover loans provided by the Federal Housing Administration (FHA).

Here are the highlights of an FHA mortgage loan:

• Down payment required is just 3.5% !!
• 100% of the down payment may be a gift
• Owner occupants only (no loans on second homes or investment properties)
• Non-occupying co-borrowers are allowed (example:  a parent helping their child buy a home)
• Minimum credit score is 620
• Maximum loan amount is $793,750
• Cash reserves are not required
• Condos require at least 51% owner occupancy and they must be on the FHA Approved Condo List (getting on the list is a lengthy, difficult process)

Part 2:  VA Loans

Part 3:  USDA Loans

Please consult your Honolulu mortgage professional if you have questions.  Contact Michael Zimmerman if you need a referral to a great mortgage advisor.

Are you considering the purchase of a home in foreclosure or one in distress?  It’s very likely that these homes have deferred maintenance and you must protect yourself.  After all, if the owner wasn’t making mortgage payments, why should you believe he/she was performing the basic maintenance required to keep the home in decent shape?

I always, always, always encourage my clients to hire a professional home inspector while the home is in escrow.  I don’t care how handy you think you are, the money is well spent.

With a little awareness, buyers can help themselves immensely before they even tender an offer.  I’m not advocating viewing homes with the intent of actively disqualifying them from the outset, but turning a blind eye to blatant problems will come back to bite you.  Here are a few problems that you can spot when first viewing a home:

• Outdoor maintenance is often telling of what is going on “underneath”.  If the home you are viewing has broken rain gutters, what else may be wrong?
• Foundation damage is always a major consideration.  Check for proper grading and cracks bigger than 1/3 of an inch.  This may indicate the home has major structural issues.
• Strong odors outside and inside almost always indicate something “bad”.  Investigate further.
• Be on the lookout for flickering lights and always check face plates for heat.  This could mean faulty wiring.
• Windows with fog or water in between double-paned windows can signify trouble.
• Stains and/or saggy walls usually may indicate water damage, mildew or mold.
• Keep your eyes peeled during your tour for pests and rodents.  Seeing evidence at this early stage is never a good sign.

Please contact Michael Zimmerman if you need a referral to a competent Honolulu home inspector.

Congress enacted legislation providing a tax credit of up to $8,000 for first-time home buyers** to stimulate the economy and revive the housing market.

According to the National Association of Home Builders, the credit is available if you purchase your first home between 1/1/2009 and 12/1/2009.  Home buyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less.  To avoid possible abuse of this credit, it is only allowed for your primary residence.

For more on this legislation, please read these Fequently Asked Questions.

** “First-time home buyer” is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

For most people, their home is the largest asset they own, so there’s a lot at stake.  This tends to add unnecessary stress to the buying process.  Keep the points below in mind and your home buying experience will be much more enjoyable.

Choose a real estate agent who’s a good fit – buying is an emotional experience, so it’s very important to feel comfortable with your agent.  Don’t forget, this is also a complicated process, so choose a highly competent agent who is able to represent you and get the job done right the first time.

No perfect time to buy or sell – if you find a great home that meets your needs today, buy it!  The only way to identify the bottom or top of the market is six months after it has passed.  When someone tells you interest rates or prices might be lower a few months from now, ask them if the home you want will still be available.  Also, ask yourself this question: what if the person making interest rate and price predictions is wrong?  If they can accurately predict the future, they’d be in Vegas rolling the dice betting their money.  Chances are, other buyers like the home you have your eyes on and they may not wait around and risk losing it.

Too many opinions cloud your judgment – you want assurance you’re doing the right thing.  Everyone does.  Ask for 10 people’s opinions and you’ll probably get 10 different answers.  Focus on what’s right for your family, the ones who’ll live in the home.

No home is perfect – let me say that again; no home is perfect.  The location may be perfect, but the kitchen could be a little bigger.  The yard is great for your pet, but the roof may need to be replaced in a few years.  Little tradeoffs always present themselves, so zero in on what is truly most important to you.

Remember, negotiating is supposed to be win-win – negotiation is defined as a discussion intended to produce an agreement.  Taking a hard line on every single point is the surest way to lose the home you fell in love with.

Complete the basic work ahead of time – find a lender you’re comfortable with and get pre-approved BEFORE you begin looking for a home.  It makes no sense to look at homes you cannot afford.  Insurance will be required, whether you’re looking at condos or single family homes.  Ask your insurance agent to explain the different coverages because insuring a condo is vastly different from insuring a single family dwelling.

Take time to build a budget – you’ll incur some costs, even if you’re moving into a new home.  Painting, window coverings and new carpet/flooring all cost several thousand dollars each.  Don’t forget to factor in condo maintenance fees or association fees as well.

Everyone has buyer’s remorse – it will pass.  A home is expensive, especially in Hawaii and it’s natural to feel a little uneasy.  Don’t forget the reasons you bought the home and why you chose this one in particular.

Choose a home because it meets your needs – this is your sanctuary; your place to live comfortably.  Over the long term it will probably appreciate, but that should not be the main reason you buy it.

Buying a home or investment property 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.

Michael Zimmerman just sold this spectacular property for investors or second home. It was the first sale at the Palms at Waikiki in 3.5 months.  The Palms is just steps away from Waikiki’s renowned beaches, Hilton Hawaiian Village, Ala Moana Shopping Center and the Hawaii Convention Center. 

Palms at Waikiki

Palms at Waikiki Condominium
1850 Ala Moana Blvd. #725
Sold for $187,500 Fee Simple

The condotel apartment is in Aqua Resort’s rental pool and the highly sought after parking stall generates additional income for the owner.  The Palms produced consistent, high occupancy throughout 2008.  Key features included:

• Quiet side of the building
• Superb condition – remodeled in 2005
• Living area approximately 271 square feet
• Open lanai approximately 46 square feet
• 1 covered parking stall
• MLS #2817929

Looking for your very own investment property in Honolulu?  Contact Michael Zimmerman or visit my web site to perform your own specific Honolulu home search.

Thanks to an amendment written by Georgia Senator Johnny Isakson, you may be entitled to a $15,000 tax credit if you purchase a home within the next year.  This amendment to the economic stimulus bill will be available to any home buyer within a year of it’s enactment.  Buyers will be entitled to claim a total tax credit of $15,000 or 10% of the purchase price, whichever is less.  To avoid possible abuse, the credit is only allowed on a primary residence and must be repaid if you sell that residence within two years of purchase**.

Senator Isakson ran successful real estate brokerage companies in the Southeast for twenty years prior to joining the Senate.  He is convinced this credit will help our ailing economy because a similar tax break introduced in the mid-1970’s stabilized home values and helped the weak housing market recover.

**The credit amount and repayment provision will probably change in the final legislation.