We had a leak at one of our condo listings last night and our owner was called to open up their unit at 3:00am. The leak did not originate from our client’s unit but it did penetrate through the walls and underneath the laminate floor in the 2^nd bedroom.

What happens when there is a leak in a condo unit? Hopefully both the owner of the unit where the leak originated as well as the units that were damaged both have HO6 or “in-walls” insurance. Condos are part of a home owner’s association or AOAO which has a blanket insurance policy for the building’s exteriors and common areas. However this insurance does not cover anything within the actual unit itself (between the walls). Not all home loans require the owner to obtain H06 insurance so I always recommend that buyers obtain this anyways. It is relatively inexpensive ($200-$300 per year) and protects owners in situations such as this.

Our owner has filed a claim with his H06 insurance company who will most likely schedule to have the damaged floor replaced. Once the origin of the leak is found, that unit’s H06 carrier will work with our client’s insurance company to handle any damages, just like car insurance. On the plus side our client ends up with new flooring in their 2^nd bedroom. On the negative this leak must be fully disclosed to any potential buyer and could be seen as a downside to the unit’s appeal.

If you’re in need of an HO6 policy or alternative property insurance please feel free to contact me and I would be happy to refer you to several great insurance agents.

Our last listing got a lot of attention. It was a 1 bedroom, 1 bath, 1 covered parking unit at Rose Terrace in Makiki. The building is simple with no amenities, but this also cuts down on the maintenance fees. Needless to say we had a good turnout at broker's open and open house. I also had over half a dozen private showings. Even though I had a lockbox in place I was there to open up for every showing.

When realtors would call to set-up showings or even during showings they would ask if I had to be there. I told them that we always try to be at every showing, even if the unit is vacant (as this one is). The reason for this is that it protects our client and their property. Without your agent there to supervise the showing things may get broken or lost. Also when leaving the unit, windows might be left open, appliances may be left on, or the unit might not be locked up correctly.

When looking to sell your property, always ask the agent how showings/open houses will be handled. If they start off by telling you they will put up a lockbox, you might want to consider talking to another realtor.

This past week we scheduled a profession home inspection, roof inspection, and pool inspection for our buyers. The first 7-15 days of a real estate transaction in Hawaii is commonly referred to as the "J-1 inspection period". During this time the buyer has a chance to conduct a professional home inspection along with any other inspections deemed necessary.

It's important to work with good inspectors that can find potential problems with the home. A good realtor can take the findings of these inspections and quantify them to negotiate for credits or repairs.

Contact me to learn how a good realtor and their team can benefit you as a home buyer.

My company was lucky enough to have the first private presentation regarding Ke Kilohana, Howard hughes' new condo development in Ward Village.

The building will be 43 stories high and feature 424 total 1, 2, and 3 bedroom residences. There are 49 market units and 375 reserved housing units for Hawaii residents. The building will be pet-friendly and include a fitness center, meeting room, karaoke room, and two unique Sky Terraces with BBQ grills and indoor/outdoor lounges. Prices will range in the $300k-$500k’s. Contact me if you are interested in attending an upcoming informational meeting or would like to get pre-qualified for reserved housing with a lead lender. #KeKilohana #988Halekuwila #WardVillage #Honolulu #Hawaii #RealEstate #ReservedHousing #Buyers #HiRealEstate #HawaiiStartsHere

I had the pleasure of helping clients do their final walk through this past weekend. During final walk through we turned on all the appliances to make sure they were still in good working order, made sure there were no leaks, and to make sure the property was cleaned and in the condition we originally saw it in.

We found them a great two-bedroom condo in Makiki, close to bus lines, Makiki Park, and Punahou School. This condo recently had an assessment, as many condos in Makiki are. Since this area was mainly built in the 70's, many of these buildings are having to spend a lot of money to retrofit their plumbing, elevators, and to do spalling work. 

Luckily, we were able to have the seller pay for the assessment in excess of $30,000. Your realtor should inform you of any past, current, or upcoming assessments and instruct you on the ramifications as a buyer. The worst thing that can happen as a realtor is if a client buys a property and 1 month later they are subject to a large assessment. #HawaiiStartsHere

I had a buyer who was in Hawaii for 2 weeks. They really wanted to find a property while they were here and knew the area they wanted. I was able to find them a 1 bedroom in Waikiki in their budget and in the area they were looking at. Once in escrow they returned back to California and have remained there through the end of their transaction.

This past week I did their final walk through for them, making sure that the repairs that we requested were completed, the property was clean, and made sure that everything was still in good working order. Every buyer should do a final walk through, especially if they are a 1st time home buyer. If there is something that should have been fixed or is different than when you last saw it then your realtor should help correct this prior to your funding date.

Since my client was in California, I did the walk through for them and took video of several windows that were repaired, screens that had been cleaned, and of the appliances to show they were still working. Buyers and their real estate agents should do the same. #HawaiiStartsHere

I was able to attend a great presentation last night presented by UBS. Their top real estate analyst, Jonathan Woloshin was flown in from New York to update Hawaii professionals on UBS's overview of the Real Estate market in the US and on a local level in Hawaii.

Jon touched on several points and one of his most important was millennial buyers. As the baby boomer generation shrinks and the millennial generation starts to get older they will need to find housing. The millennial generation has had an increase in student loan debt that has slowed down an increase in home ownership in this demographic. Millennials are more open to renting and hold other things more important than home ownership such as traveling, flexibility, and ability to move in their jobs and careers.

Other than an increase in student loans for millennials, median income has been relatively flat, and home prices have continued to increase steadily. On a local level I think this impacts housing immensely in Hawaii. Down payment requirements, student debt, and rising home prices set back millennials even further in Hawaii and leave the market open to "professional investors". One of my fears is that before millennials have the ability to buy after reducing student debt and saving for their down payment they might have already made the decision to move to a more affordable market on the mainland.

One trend though, emphasized by Jon was the fact that many of these baby boomers are leaving property to their children or grandchildren in this millennial demographic and this is common in Hawaii. This could potentially be in the in needed for millennials in Hawaii to plant their roots in Hawaii and enter the housing market. Just like local economists in Hawaii, Jon also believed that steady growth is the projected path due to the millennial generations low home ownership and that the "professional investor" has a large opportunity to look for investment properties that will generate long-term future income streams.

The appreciation of housing in Hawaii out paces the median increases in income. The only way to bridge the gap is to enter the housing market sooner rather than later. There are several first time home buyer programs out there to help. 

Just closed on a transaction last week with a first time home buyer. They purchased a 2 bedroom, 2 bath unit at Mauna Luan in Hawaii Kai. The unit was mostly original but in good shape and had a nice view overlooking the pool. The size of units in the building are very attractive with 1 bedrooms over 800 sqft and the 2 bedrooms around 1200 sqft. The two bedrooms range from the low to high $500,000's. The building is well managed and features amenities such as a security guard, recreation area, gym, sauna, multiple pools, BBQ area, and covered parking structure. Please let me know if you'd be interested in receiving information about current listings in this building.

On Wednesday I was able to give a presentation to 25 economics students and professors at KCC (Kapiolani Community College). I was joined by my mentor and colleague Kim Wong Balisacan. An overview was given about the home buying and mortgage process. Attendees learned how to be stronger buyer in today's market, what goes into their credit score and qualification, and what programs are available for 1st time home buyers.

Hawaii Starts Here is the best resource for home buyers in Hawaii. Put together by one of Hawaii's only real estate agents with a residential mortgage lending background, this site offers a wealth of information for both the 1st Time Home Buyer as well as experienced buyers who have completed multiple transactions. Find out how to start the home buying process, how to be a stronger home buyer, learn about the different programs for home buyers on a national and state level, as well as getting in touch with knowledgeable and professional real estate resources.