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.

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

The extended Home Owner Tax Credit may be a window of opportunity for some folks who have wanted to sell their home, whether to move up or to downsize, but the credit expires on April 30, 2010.

This $6500 tax credit is for current home owners who have owned and resided in their home for at least 5 consecutive years out of the past 8 years.

If you combine this tax credit with historically low interest rates and great values in the market place, it might be the right time to make your move.  However, this tax credit is only for a limited time and waiting too long may cause you to miss out on market opportunities that could benefit you.  You must have a binding purchase contract signed by April 30, 2010.

Each person’s situation is different.  I will be happy to meet with you and provide a no-obligation consultation to discuss your home’s current value as well as the prices of homes in your target range.  Don’t look back and wish you had sold your home instead of waiting.  There‘s no obligation to explore your options, so call Michael Zimmerman at 808-457-9683 today to schedule a meeting.

Disclaimer:  Consult your attorney and your CPA to ensure you fully understand the ramifications of a short sale.

Given the state of our economy, it appears short sales are becoming more popular as unemployment drives some folks toward foreclosure.  Hawaii foreclosures rose in 2009, destroying owners’ credit in the process.  A short sale may have helped minimize that damage.  For a homeowner to qualify as a short sale candidate, generally, the following must be true:

1. The homeowner is in default - this means the owner is at least 30 days past the last day of most lenders’ grace period.
2. The homeowner has little or no equity in the property - the market value of the home is less than or about equal to the amount owed to the lender(s).
3. The homeowner has a legitimate hardship - the owner must be able to prove that a real hardship caused them to fall behind in their payments.  Examples include:

• temporary or permanent job loss
• significant pay cut
• divorce
• illness or death in the family
• increased property taxes
• decrease in property value
• increase in payment due to an Adjustable Rate Mortgage (ARM) resetting

If you are considering a Honolulu short sale, contact Michael Zimmerman for a free consultation.

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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If you are considering selling your Honolulu home, it may be prudent to complete a home inspection before putting your home on the market.

A home inspection may identify problems such as faulty plumbing, wiring, cooling issues, the need for roof replacement, etc.  Since we know most buyers will conduct a home inspection before closing, identifying and correcting problems ahead of time can lessen the pain that surprise issues bring.

In any market, you increase your chances of attracting and retaining a buyer by maintaining your home in top-notch condition.  Your home should look good, but also function well.  Bottom line, if you find and correct problems before selling, you set yourself up for a smoother closing process.

For more information on home inspections and locating a home inspector, visit the website for the American Society of Home Inspectors web site.

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

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.

When meeting with a potential home seller, I always advise that three things determine how fast a home will sell.  They are location, price and condition.  Nothing can be done about location, but price and condition are within the owner’s control.  A home must be priced to sell as well as visually appealing to prospective buyers.  In this buyer’s market, new paint, updated light fixtures and fresh new flooring may not be enough.  Sellers must manage those minor updates and also keep up with home maintenance to sell quickly.

Buyers are looking beyond cosmetics and bypassing homes with near term maintenance issues.  For example, most buyers realize replacing the roof will cost at least $20,000.  If your home’s roof needs to be replaced in two years, your home may not compare favorably with one down the street that doesn’t have a similar maintenance challenge.  Buyers are carefully considering all near term costs and that other home down the street will require less cash out of pocket and be less of a hassle for them in the future.

In conclusion, if you are considering a home sale soon, you should give serious thought to putting as many maintenance issues behind you as possible.

Replacing worn or stained carpet is a great way to increase your home’s appeal during the selling process.  Before you begin, it’s important to know what is available and what will work best before you go to the store.  This enables you to narrow your search and save time, as there are countless choices of carpeting. 

Be aware that carpeting your stairway will generally cost between six and nine dollars per step.  If you prefer a carpet runner, the cost will be significantly higher.  Padding extends carpet life and increases the overall comfort factor and it’s completely worth the investment!  It’s wise to replace your old padding, because most carpet manufacturers will not honor their warranty with an old pad underneath new carpeting.

Carpet types and attributes:

• Berber – Has a high-level loop with a nubby texture.  It wears very well, although is harder to clean.
• Plush/Cut-Pile Carpet – Saxony plush is very popular because it is soft with short tufts.  It does not wear as well as berber.
• Wool – The most expensive type, but it is comfortable, durable and resistant to dirt.  Direct sunlight can fade it.
• Synthetic fiber – It is made mostly made of nylon, is cheaper than wool and is durable.  Sunlight may damage it.
• Olefin – Cheap, but less durable than nylon.  It is pre-treated to resist fading, but can be damaged by heat and sun.  It is a very good choice for basements.
• Acrylic – More expensive than nylon, but more closely resembles wool and resists fading.
• Sisal – A natural fiber derived from the cactus plant.  It is very strong and durable, but is extremely rough in texture.

Are you considering a Honolulu home or investment property sale?  If so, contact Michael Zimmerman.  In addition, check out the seller resources available on my web site.

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.

Many older homes in Honolulu are cute. However, there’s a difference between old and cute and functionally obsolete.  Some buyers are looking for a home that they can upgrade to meet their needs; to put their signature on, so to speak.  A much greater percentage of buyers are looking for a home that’s turnkey; something they can move into immediately.

For those thinking of selling their home in the near future, it’s worth taking a little time to assess the strengths and weaknesses of your home.  If it has some of the features listed below, you should be aware it may take longer to sell your home.

• popcorn or stucco ceilings and ceilings with dark wood beams
• no air conditioning
• just two bedrooms
• just one full bathroom
• split level floor plan
• single wall construction
• condos with an abnormally high maintenance fee

Are you considering a Honolulu home or investment property sale?  If so, contact Michael Zimmerman.  In addition, check out the seller resources available on my web site.

Are you trying to think of ways to squeeze a little more from your home sale?  There are simple things that you can do yourself and they may not be as costly as you think.  Here are a few ideas:

• First impression.  Adding foundation shrubs, bushes and flowers is an inexpensive way to add curb appeal.
• Fresh  paint.  We all recognize that a home’s exterior and interior can be magically transformed with the right shade of paint.  At a minimum, it changes old and dingy to fresh and new.
• The entrance.  Replace your dated/worn front door and make a tremendous improvement in the way your home looks from the curb.
• Light fixtures.  Changing old light fixtures is another way to update and freshen your home’s exterior.
• Inside the home.  Studies indicate that chrome fixtures are preferred to the more dated gold fixtures and that a fixed glass screen is preferred to a shower curtain.
• Window treatments.  Simple blinds are the most popular choice.
• Hardware.  Consider replacing your bathroom and kitchen drawer pulls with more modern choices.
• The appliances.  Studies also show that upgrading to energy efficient models adds great value to your home.

Are you considering a Honolulu home or investment property sale?  If so, contact Michael Zimmerman.  In addition, check out the seller resources available on my web site.

It’s much more difficult for buyers to obtain a mortgage today than it was just a year ago. Lenders are requiring larger down payments and higher credit scores to finance homes and investment property.  Given the relatively high home prices in Honolulu, an old concept is making a comeback and becoming more and more popular; owner financing.  This concept may give home sellers an edge over their competition as it fully eliminates a large obstacle many buyers face today.

If you don’t need the proceeds from the sale of your home immediately, seller financing can be a great investment.  Partial seller financing is also a possibility since most buyers will have a cap on their loan allowance.  As the seller, you may finance the remainder at a higher interest rate than normal.  Another benefit to consider with owner financing is the steady income you will receive from the monthly mortgage payments.  Given the equity market volatility that we have been experiencing, this could become your one steady interest earner – perhaps 5-7% or more.

Owner financing is not without risk.  There is always a chance the buyer may default on the loan.  Should this happen, it’s possible you may reclaim the home through a legal process.**

Are you confused about the dynamic Honolulu real estate market?  Is now the right time to sell?  Do you want to explore your options?  If so, contact Michael Zimmerman.  In addition, check out the seller resources available on my web site.

** This post is provided for informational purposes.  Please consult with your legal expert to be sure you fully understand all the risks associated with owner financing.

There is one question on every home seller’s mind.  How long will it take to sell my home?  I answer that question nearly the same way each time it’s asked.  It usually depends on two things listed below starting with the most important consideration.

1.  Price – If you want your home to be the next one sold in the building or neighborhood, you should present the best value to the buyer.  In this buyer’s market, you need to be the price leader.  That may well mean pricing below the last sale price.  Each seller must decide which is more important; being the next sold and moving on to what’s next or trying to achieve a certain price that may not be reached (in 2009 or 2010).

2.  Condition – Consider this…builders enhance appeal by featuring model homes decorated in current colors with upgraded amenities.  Our goal is to make your home as close to a model home as possible, while being sensitive to costs.   You have control over condition and you can increase value and decrease marketing time by ensuring your property is in the best possible condition.

Are you considering a Honolulu home or investment property sale?  If so, contact Michael Zimmerman.  In addition, check out the seller resources available on my web site.

Once you’ve chosen to sell your Honolulu home, setting the price is the most important decision you’ll make.  No question about it.  What I wrote over six months ago in Price Your Home to Sell is worth a second, third and even a fourth reading.

If the real estate agent you’re talking to isn’t telling you the things I’ve written below, you’ve got the wrong agent.  Contact Michael Zimmerman or call 808-457-9683 for an appointment immediately.

Major points to consider when deciding on your list price:

• An overpriced home will definitely take longer to sell (if it sells at all).
• If you overprice, you’ll probably receive less than if you priced it correctly to begin with.
• A high asking price does not guarantee a high selling price.
• Buyers do what buyers do — they shop around to find the best value.  Make sure you offer the best value.
• Buyers qualified to purchase your home may not even see it if it’s overpriced.
• If your home is priced too high, it will not compare favorably to correctly priced homes in the same price range.
• If you overprice, your listing will likely become stale.  Some buyers won’t even come to see it and the ones that do will feel they can aggressively negotiate on price.  They assume you will be desperate to sell and that they have little or no competition.
• Carefully consider what comparable homes recently sold for and look at comparable pending sales.  These are good indicators of market value.
• Don’t get lost in emotion.  No amount of anxiety is going to make buyers pay 10, 20 or 50 thousand dollars over market price for your home.
• Your home is special to you.  That’s not true for the buyer, yet.
• Buyers simply do not care how much you “need” to net from your home sale.

Are you considering a home or investment property sale?  If so, contact Michael Zimmerman.  In addition, check out the seller resources available on my web site.

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.

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.

A tax-deferred exchange enables real estate investors to preserve wealth by re-investing in “like-kind” assets.  When real property is sold, an investor may incur federal capital gains tax and, in some states, state tax as well.  A tax-deferred exchange allows investors to sell investment properties and acquire “like-kind” properties while deferring federal capital gains tax.  Many states with a capital gains tax offer a similar tax advantage.

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.  The Internal Revenue Code rules can be rather complicated, so be sure to consult with your tax professional.  Let’s cover some of the important points.

What is “like-kind”?
“Like-kind” does not mean “exactly the same” regarding exchanges of real estate.  A condominium rental unit may be exchanged for a single family rental or other real property like a retail center, office building, farm property or a leasehold interest in real estate of 30 years or more.  Most real property is considered “like-kind” to other real property.

Identification Period (45 Day Rule)
The replacement property must be identified within 45 days of the transfer of the first relinquished property.

Exchange Period (180 Day Rule)
The replacement property acquisition must be completed by the earlier of:  
(1) 180 days of the transfer of the first relinquished property or
(2) the due date of filing your federal income tax return for the year in which you transferred the first relinquished property, including filing extensions.

Weekends and Holidays
If the 45th day falls on a Saturday, Sunday, or holiday, the replacement identification should be completed on a preceding business day.  Similarly, if the 180th day falls on a Saturday, Sunday, or holiday, the exchange must be completed on a preceding business day.

Read Part 2

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.

Property boundary questions often arise when selling or buying oceanfront property.  Julia Jones, Account Manager at First American Title, has prepared two short papers explaining the basics of shoreline setbacks and shoreline property boundaries.  The first paragraph of the shoreline property boundaries paper and a link to the complete paper is below.

Shoreline Property Boundaries
"Shoreline property in Hawaii can decrease or increase in size based on the location of the shoreline and the natural process of erosion and accretion.  Erosion and accretion are gradual processes in which land is either reduced or increased in size based upon how the ocean deposits beach sand over time.  Because Hawaii’s beaches are a valuable resource, there are Hawaii statutes and case law which have discussed and defined the term "shoreline" which divides public and private land.  Land below the high water mark is a natural resource, and is owned by the state."

Read the complete Shoreline Property Boundaries paper in PDF format.

Read the first part of this series (Shoreline Setbacks):  Hawaii Oceanfront Property Boundaries Part I.

Contact Michael Zimmerman if you are thinking about selling or buying a home or condo in Hawaii.

This post is provided for informational purposes only and is not to be relied on for any reason.  If you have any questions regarding the location and effect of a shoreline boundary, please consult with a legal expert.

Property boundary questions often arise when selling or buying oceanfront property.  Julia Jones, Account Manager at First American Title, prepared two short papers explaining the basics of shoreline setbacks and shoreline property boundaries.  The first paragraph of the Shoreline Setbacks paper and a link to the complete paper is below.

Shoreline Setbacks
"The "shoreline" under Hawaii law means "the upper reaches of the wash of the waves, other than storm and seismic waves, at high tide during the season of the year in which the highest wash of the waves occurs, usually evidenced by the edge of vegetation growth, or the upper limit of debris left by the wash of the waves."  Haw. Rev. Stat. §205A-1.  Shoreline Certifications identifying where a shoreline boundary is located as of a certain date may be issued by the Chairperson of the State of Hawaii Department of Land and Natural Resources (DLNR), upon proper application.  DLNR Certifications are generally valid for no more than one year."

Read the complete Shoreline Setbacks paper in PDF format.

Contact Michael Zimmerman if you are thinking about selling or buying a home or condo in Hawaii.

This post is provided for informational purposes only and is not to be relied on for any reason.  If you have any questions regarding the location and effect of a shoreline boundary, please consult with a legal expert.

Many people routinely ask why they must pay for title insurance when buying or selling a home.  Julia Jones, Account Manager at First American Title was kind enough to provide a short paper explaining title insurance.  Below is the full text:

"Title insurance protects property owners from unforeseen claims against his or her legal ‘title’ to or ownership of the property.  Lenders generally require title insurance in order to assure that any loans secured by the property are sound.

Are you delaying a home or investment property purchase because you hope prices will drop?  You’re not alone.  As I wrote in a previous article titled Now is the Time to Invest in Oahu Real Estate, I know many people who sat on the sidelines since 2003, only to watch single family home and condo prices nearly double.  They’re still kicking themselves.

As our economy is weakened by the surge in oil prices that affect nearly every product sold, there is another facet of the property purchase we tend to overlook.  We’ve taken low interest rates for granted.  It’s easy to forget that mortgage rates were above 7% in 2002 and above 8% in 2000.  What if the Federal Reserve raises interest rates to fight the inflation being injected into the economy by rising oil prices?  Let’s compare mortgage payments at different interest rates.  The table below shows principal and interest payments on a $500,000 loan.  A 1% interest rate hike drives your monthly payment 11% higher.

Let’s look at this from another angle.  Let’s analyze the effect of interest rate hikes on your purchasing power.  The table below assumes you can afford a principal and interest payment of $3000.  A 1% interest rate rise reduces your purchasing power nearly 10%.

In conclusion, if you’re waiting for home or condo prices to drop, an interest rate increase could easily offset that price drop.  Ask yourself the following question.  What is more likely in the next year; mortgage interest rates rise by 1% to fight inflation or a 10% drop in home/condo prices?

If you’re getting ready to buy your first home or are selling and trading up, contact Michael Zimmerman for a no obligation consultation.

1.  Price it wrong.  This is number one on the list with good reason.  A home properly priced is only half sold.  No amount of open houses, full-color ads, glossy fliers, virtual tours or Goodyear blimps will compensate for a price that’s too high.

10.  Dismiss feedback.  What do buyers know anyway?  They can’t possibly mind the H-1 freeway noise, water leak stains on the garage ceiling, hum from the high-voltage lines and termite mud tubes.  What are they thinking?

Based on an article written by Paul Pastore, a RE/MAX agent in Chandler, AZ.