As I wrote earlier in the series, all clients should work with a highly skilled agent to guide them through the buying process and they deserve the best service from every professional they encounter in Hawaii.  After the agency relationship has been established and the client has clearly defined his/her property goals, it’s time to find the right property.

Viewing Property
After discussing the requirements of property you’d like to see, your agent will begin contacting other agents to schedule appointments to view their listings.  Your agent should brief you on the properties you will be viewing, provide you with written information for each specific property (including room to make notes) and set a realistic showing schedule.  Your agent should be aware of the time required to travel to and from various locations on the island and have a clear idea of how long you need to view a particular property. 

Scheduling viewing appointments not only involves you, but also the real estate agent or owner showing the property.  It’s your agent’s responsibility to get you to your appointments on time, while being mindful of the agent/owner at the property location.  A competent agent will meet his/her clients’ needs, yet respect another professional’s time and effort.  When you tender an offer to buy a home, you’ll have to work closely with the seller’s agent and owner during a 30 to 45 day escrow period.  It makes sense to start the relationship off on the right foot by letting the owner and his/her agent know you value their time.

Generally, the goal should NOT be to see every property on the market.  This would literally take weeks or months.  After listening to your desires, your agent should be able to quickly narrow the field of properties that meet your needs.  If this isn’t happening, you and your agent should regroup and candidly discuss how to get back on track.  The objective is to find the right home, in the shortest amount of time, at the right price with the least hassle to you, the buyer.

Buying a home or investment property is a large commitment.  You deserve nothing less than top-notch service, so don’t settle for less.  If your Realtor isn’t providing you with the service you deserve, contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.

Read Part 1

Read Part 2

As I wrote in Part 1 of this series, I believe my clients deserve the best service their hard earned money can buy rather than the mediocre service that is often accepted as the norm in Hawaii.  All clients deserve a highly skilled agent to guide them through the buying or selling process.  They deserve to work with a professional who values their time and the time of others.  This begins with the buyer loyalty agreement and never ends because I want my clients to be a client for life.  What comes after the buyer loyalty agreement?  Information to aid the buyer.

Information Helpful to Buyers
There is so much information available to add value to the buying experience.  Every potential home buyer has different needs, but two considerations drive the amount and type of information I provide once a client chooses me as his/her agent.  The two things are:  the buyers’ home ownership experience (first time vs. veterans) and whether they are Hawaii residents or just moved to the island.  Here are 12 things I routinely provide to my clients.

• My mission statement
• My personal service standards
• Special Report:  Top 20 Mortgage Mistakes Home Buyers Make
• Special Report:  How To Avoid Paying Too Much
• National Associations of Realtors Code of Ethics
• National Association of Realtors Handouts for Consumers
• List of reliable service partners
• My cell phone usage policy
• EPA Lead Paint Guide
• EPA Mold Guide
• Flood Zone definitions
• Sample Puchase Contract

You deserve these services, so don’t settle for less.  If your Realtor isn’t providing you with this level of service, contact Michael Zimmerman for a no obligation consultation or give me a call at 808-457-9683.

Read Part 1

Read Part 3

More and more as I go about my business in Hawaii, I see so many examples where mediocre service is the norm rather than the exception.  I believe my clients deserve the best service their hard earned money can buy, regardless of the dollar value of the real estate transaction.  All clients deserve a highly skilled agent to guide them through the buying or selling process.  They deserve to work with a professional who values their time and the time of others.

There are some things you should expect from your agent when you begin to search for property.  This post and the ones that follow will cover some of those expectations.

Buyer Loyalty Agreement
Once you have chosen an agent, but before visiting the first piece of property, your agent should ask you to approve an agreement to work together.  In Hawaii, this is called a Buyer Representation Agreement.  

Why should you do this?  The agreement clearly lists an agent’s duties and obligations.  Briefly, the duties owed to you include:  obedience, loyalty, full disclosure, confidentiality, accounting and reasonable care.  This agreement is binding and you’ll know exactly what your agent should be doing to represent your interests from the time you begin your property search right up to the close of escrow.

Another very important reason you should sign a buyer loyalty agreement is that it is a National requirement.  Article 9 of the National Association of Realtors Code of Ethics, states this.  Some agents choose not to use a representation agreement, but why would you knowingly work with an agent who refuses to follow the established code of ethics?  You have no assurance that this agent will provide you with the competent, high quality service you deserve.  Without question, it is in your best interest to clearly understand the services your agent will provide. 

One final thought on the Buyer Loyalty Agreement.  If you were selling your home, you would expect to approve an agreement naming an agent to represent you during your the sale.  This is no different.  It just makes sense to designate an agent to represent your interests when buying a home.

One Waterfront Towers Condominium
415 South Street Makai/1902

Peace and Comfortable Living Await You

You will enjoy and appreciate the quality and elegance of this magnificent home.  The spacious floor plan is a rare find these days.  There are only four apartments per floor, so it’s quiet and private.

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

Don’t miss your unique opportunity to own this ideal one bedroom condominium.

• Spectacular, sweeping ocean and harbor views
• Spacious one bedroom, one bath floor plan
• Graceful polished Brazilian Oak flooring
• Floor to ceiling windows
• Dine on your private lanai
• Plentiful in-home storage
• Living area approximately 804 square feet
• One covered, assigned parking stall
• MLS #2817923 

One Waterfront Towers is one of Honolulu’s premier luxury condominiums.  Conveniently located just minutes from Ala Moana Shopping Center, Ala Moana Beach Park, Ward Centers, Chinatown, Downtown and Waikiki.

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 only, is not a warranty and should be independently investigated by buyers. This information is deemed reliable, but NOT guaranteed.

My wife and I have lived in the Ala Moana/Kakaako area for two 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 communities.  Examples include Hokua At 1288 Ala Moana, Ko’olani, Hawaiki Tower, Nauru Tower, Moana Pacific, Imperial Plaza 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 new Nordstrom store located on Kapiolani Blvd.  Whole Foods Market is under construction and due to open in 2010.

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, 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 Punchbowl, Diamond Head and the Ko’olaus to Honolulu Harbor and the Waikiki shore.

Michael Zimmerman just sold the Ko’olani condominium with this breathtaking view.  It was the first high floor two bedroom sale in nearly two months.  Ko’olani is conveniently located, just minutes away from Ala Moana Shopping Center, Ala Moana Beach Park, Ward Centers, Downtown and Waikiki.

Ko’olani Condominium, 1177 Queen Street #4207
Sold for $915,000 Fee Simple

Ko’olani is one of Honolulu’s newest luxury condos.  The building’s superb amenities include fitness center, saltwater pool, whirlpool, billiard room, tennis courts, movie theater for 18 guests, business center, putting green, party room, concierge, conference room and a dog park.  The sold apartment’s highlights included:

• Panoramic Pacific Ocean Views
• Large bright rooms throughout
• 2 bedrooms & 2 baths
• Living area approximately 1108 square feet
• Open lanai approximately 49 square feet
• 2 covered, assigned, parking stalls
• Gourmet kitchen with with Viking appliances and granite counters
• Luxurious bath to match the lovely master bedroom

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.

Condominium residents wonder why their maintenance fees are high.  I am no exception.  Nearly every condo association is raising maintenance fees to keep up with inflation, so most of us can expect a sizable increase next year, mainly due to rising energy costs.  An association’s largest cost components typically include electricity (number one by far), employee wages & benefits and insurance.

There are times when a condo association chooses to impose a special assessment rather than raise the monthly maintenance fee.  As I write, owners at Hokua at 1288 Ala Moana and Nauru Tower are in the process of paying a special assessment.  The condo association decides if the special assessment will be paid in a lump sum or spread over a period of months.

Perhaps you’ve been wondering how your building’s maintenance fees compare with similar buildings’ fees.  Just as an example; if someone owned a 1000 sq. ft. apartment and their maintenance fee is $600 per month, their fee per square foot is $.60.  It’s not possible to completely compare apples to apples because every building provides a different set of amenities, but below are the maintenance fee costs per square foot of living space for some buildings located in Kakaako and Downtown.

**Some listings indicate individual apartment electricity may be included in the Harbor Court maintenance fee.  In most buildings, owners pay for their electricity usage in addition to the maintenance fee.
***Calculated different figures for various apartments ranging from $.65 to over $.85 per sq. ft.

Are you thinking of relocation to Honolulu?  Please use Michael Zimmerman’s complimentary online Honolulu MLS Search.

This is the final post of this four-part series on 1031 exchanges.  Internal Revenue Code Section 1031 provides a great chance to deferring taxes and build wealth.  The Internal Revenue Code rules are complicated, so please consult your tax professional.  Let’s answer some Frequently Asked Questions.

Q:  How do I identify replacement property?
A:  The identification must be submitted in writing, unambiguously described, signed by the investor and delivered to the title company before midnight on the 45th day.  The title company will provide the necessary forms.

Q:  What happens if I change my mind and want to cancel my exchange?
A:  If you transfer the relinquished property and do not replace it with another, the sale will be a taxable event and any capital gain will be subject to federal and state capital gains tax.  If you decide to cancel the exchange after the title company has received exchange proceeds, access to those proceeds may be limited until certain time periods elapse.

Q:  What if I sell a property and then decide I want to make it part of a tax-deferred exchange?
A:  If you actually or constructively received proceeds from the sale, it may not be possible to include that property in a tax-deferred exchange.  If you have entered into a contract to sell, but have not closed, it mat be possible to carry out a tax-deferred exchange, provided you execute the proper exchange documents, identify the replacement property within 45 days of the closing and actually receive it within 180 days or before your tax return is due.  Consult your attorney and tax advisor to help you make that determination.

Q:  What is "boot"?
A:  Boot can be cash received from the sale of relinquished property or other non-cash consideration, including any property that is not "like-kind", promissory notes or debt relief (mortgage boot).  If you receive boot in an exchange, it is likely that all or some portion will be taxed.

Q:  Can or should I do a tax-deferred exchange for my personal residence?
A:  No, your principal residence is not considered investment property and therefore, does not meet the requirements of Internal Revenue Code Section 1031.

Read Part 1

Read Part 2

Read Part 3

Please contact Michael Zimmerman if you have a specific question about 1031 exchanges or search for investment opportunities using my Honolulu home search.

This information is provided as a courtesy only, is not a warranty and should be independently investigated by buyers. This information is deemed reliable, but NOT guaranteed.  Consult your attorney and tax advisor before you exchange investment property.

As I wrote earlier, Section 1031 of the Internal Revenue Code provides a tremendous opportunity to build wealth by deferring taxes.  Within carefully defined limits, investors may carry forward gains made on one property into another property and defer capital gains taxes.  The 1031 exchange rules are complicated, so be sure to consult with your tax professional.  Let’s continue with some important points.

Reverse Exchange
This occurs when an investor wants to acquire replacement property prior to the closing of the relinquished property.  Warning:  reverse exchanges are much more costly and complicated than a normal 1031 exchange, so please consult with your tax professional and title officer prior to initiating this type of exchange.

Special Circumstances
If any of the circumstances listed below apply to your transaction, be sure to notify your real estate agent, your title officer and your tax professional.

• Disposing of property held by a partnership
• Disposing of property held in a living trust
• Exchanging property with a related party
• Receiving cash from the exchange
• Acquiring property of lesser value than the relinquished property
• Carrying back financing on the relinquished property (carry back note)
• Acquiring replacement property in the following tax year
• A reverse exchange transaction
• Improvements will be made to the replacement property (construction)
• Acquiring replacement property with spouse or others whom were not a party to the exchange
• Combination exchange (part investment property and part owner occupied)
• Residing in a state other than the relinquished property

Read Part 1

Read Part 2

Read Part 4

Please contact Michael Zimmerman if you have a specific question about 1031 exchanges or visit my web site to find investment opportunities using my Honolulu home search.

This information is provided as a courtesy only, is not a warranty and should be independently investigated by buyers. This information is deemed reliable, but NOT guaranteed.  Consult your attorney and tax advisor before you exchange investment property.

As I wrote in Part 1 of the 1031 Exchange series, Section 1031 of the Internal Revenue Code provides a remarkable opportunity to build wealth by deferring taxes.  Within carefully defined limits, investors may carry forward gains made on one property into another one, deferring capital gains tax, allowing full use of equity in the acquisition.  Let’s continue with the important points.

Fully Deferred Exchange
For an exchange to be fully tax-deferred, replacement property must be equal to or greater in value and equity than that of the relinquished property.  In addition, debt on the replacement property must be greater than or equal to the debt on the relinquished property, unless cash is added to offset debt.

Replacement Property
An investor may identify replacement property according to the following rules:

• 3-property rule - three properties, regardless of value
• 200 percent rule - any number of properties, as long as their combined fair market value does not exceed twice the value of the relinquished property
• 95 percent rule - any number of properties, regardless of their combined fair market value, as long as you acquire 95 percent or more of the total value of such properties

Read Part 1

Read Part 3

Read Part 4

Please contact Michael Zimmerman if you have a specific question about 1031 exchanges or visit my web site to find investment opportunities using my Honolulu home search.

This information is provided as a courtesy only, is not a warranty and should be independently investigated by buyers. This information is deemed reliable, but NOT guaranteed.  Consult your attorney and tax advisor before you exchange investment property.