Claire's O'ahu Real Estate Blog

Attention Military Personnel!

First Time Homebuyers Tax Credit Extended For You!

It was reported on Monday that the House of Representatives has passed a bill to extend the $8,000 First Time Homebuyers Tax Credit for military personnel who served at least three months of overseas duty in 2009. The current tax credit program is set to expire on November 30, 2009, but the new change extends it for an additional 12-months. Service members supporting conflicts abroad this year did not have enough time to take advantage of the current program.

For Hawaii, the extension is welcoming as some components of the military are in the early stages of their 12-month deployment abroad. When they return, they will still have some time to find a home and to take advantage of the credit.

Recent increases in home sales on O’ahu can be related to the current tax credit incentive. With the deadline approaching quickly, the pressure to close escrow before November 30 has created a back up in the appraisal system which has been causing delays. In my practice, that same pressure has gone as far as intimidating potential first-timers causing them to shy away from the already complex buying process. It’s already difficult to manage a unique lifestyle apart from their civilian counterpart. This extension can help relieve these same buyers by allowing them the time to get through the process without feeling rushed. Way to go Rep. Charles Rangel from New York for introducing the bill!

To learn more about the credit:

http://www.federalhousingtaxcredit.com/2009/index.html

Have a fantastic day! Aloha, Claire

IT IS A GREAT TIME TO BUY!  This entry is definitely not directed to those who have been affected by any layoffs or potential furloughs.  This entry is really for those who have a steady and secure job and have been dreaming about having a home in Hawaii but wasn't sure if it they could afford it.  It is also directed to military personnel and their families who would rather not live in housing as well as others who never even thought about moving out of the family house. 

It's your chance right now and depending on the type of financing, you have until mid September (in order to close escrow by December 1, 1009) to qualify for the Home Buyer Tax Credit!  Why wouldn't you at least check to see if you have everything in place to achieve your dream of homeownership? 

Buying a home in O'ahu, Hawaii is longer process these days.  You can't decide to wait until mid November to buy a home and expect to qualify for the $8,000 credit.  It is a "process", which includes looking for a trusted and knowledgeable person to help you get through it.  Simply put, it doesn't take weeks anymore to buy a house, it takes months.  Right now, the tax credit is only offered through December 1, 2009.  Then, it goes away.

So don't wait!  Start now!  Go get your piece of the American Dream.  Our government want Americans to own America.

Questions? Just holla!

-Claire

According to the National Association of Realtors, existing home sales are up for the third month in a row.  This uptrend is credited to The Homebuyer Tax Credit and the continuing offering of low interest rates. For buyers, it is opening up opportunities to purchase a home for the very first time or perhaps upgrading to another home.

Is this an indication of the economy is recovering?  Perhaps. It is however a good indication that the housing market is showing signs of recovery in major regions across the nation. 

What does it mean for O'ahu, Hawaii?  Housing inventory in desired neighborhoods are low.  We are seeing shorter days on market and multiple offers not only on regular sales but on distressed properties and short sales as well.

The home buying process, it seems, have become more complicated with new rules that have been placed on the home appraisal industry, lenders, and for Hawaii, the conveyance and recording process.  Not only buyers, but also sellers both need the assistance of professionals to help navigate through the issues, good and bad.

Those who are waiting for the market to bottom out, I'm not so sure you'll see it in the future.  I think we've already passed it.

Have a great weekend everyone!  -Claire

With lower housing inventory in recent months, many home sellers in the Leeward Oahu market are presented with multiple offers to purchase.  When you are a home buyer in a multiple offer situation, here's some advice to have your offer accepted... not rejected!!

An offer has three components: price, terms and conditions.  Position each part of the offer in a way that would benefit both the Buyer and Seller.

First, review the comparables SOLD homes provided by your Realtor^®.  The saying, "the numbers don't lie", is so true.  Use that data and compare it to the subject property.  Position your price accordingly.  If you want to offer a low price to begin the negotiating, you just may lose in the first round to other offers that were presented with yours.  Get close to the fair market value as possible.

Secondly, learn more about the Seller to see what they are looking for in the terms.  If you already take the time to learn about the Seller's needs, then you have less of a chance for the Seller to counter your offer, or worst, have the Seller pick another offer.

Thirdly, make sure your conditions are reasonable and protect both you and the Seller.  All conditions should work for the benefit of the two principals involved.

Be sure you are working with a competent professional who is knowledgeable in your market and are well trained in working with purchase contracts. They should be able to advise you fully so that you will make the best informed decision for yourself!  Good luck!

If you plan on buying a home on the island of O'ahu, plan on at the minimum, a 45 days (moving to 60 days in most cases) escrow process before picking up your keys.  Why does it take so long?  There are numerous reasons why it is taking longer than the traditional, 20 to 30 days escrows.  The biggest reason is lack of resources.

With interest rates dropping to historical lows over the past few months, it has spurred plenty of activity for existing homeowners refinancing their homes.  Lenders, especially larger institutions, are reportedly inundated with refinancing files in addition to the already strained resources handling the affects of a country in recession.  Specifically for O'ahu, lender required appraisals are taking up to 6 weeks in some cases, causing a domino effect on all the processes that have to occur after the appraisal.

To make matters worse, in anticipation of publicized State of Hawaii employee furloughs, necessary recording process officially will take an additional 24 hours, increasing the already long, Bureau of Conveyances recording process to 4 days after signing documents.  This new procedure became effective July 1, 2009.

Going into the home buying process should be enjoyable!  Be aware and understand the process so not to have any surprises. Setting your expectations early will allow you to have fun purchasing your island home.  Choose a reputable REALTOR^® (R, or RA), or find one that is an Accredited Buyer Representative (ABR) to help you through the process!

Have a great day!

Claire

Less housing inventory and plenty of activity can possibly equate to higher home values.  Compared to June 2008, the Honolulu Board of Realtors announced a 9.5% increase in total units sold in June of this year.  HBR also reported that the median sales price for O'ahu Single Family Homes has also increased 3.5% in May 2009. 

For those relocating to O'ahu, it is a good indication that our market is unique compared to those on the mainland.  How the unemployment rates going to affect this upward trend?  We have yet to see.

For the June 2009 Residential Sales Statistics for O'ahu, please visit HiCentral by clicking here.

After six years of co-sponsoring the Survivor Recognition Program at Susan G. Komen Race for the Cure events, RE/MAX in 2009 takes a key step forward in the fight against breast cancer by becoming a national sponsor of the full race series.

Joining the likes of American Airlines and Ford, RE/MAX is one of only nine high-profile sponsors of the full series of 121 Race for the Cure events in 2009 - and the only real estate sponsor.

"We did the right thing in 2002 when RE/MAX first joined the breast cancer movement, and becoming a national sponsor is the natural next step," says RE/MAX International CEO Margaret Kelly. "The enduring 'RE/MAX Racing for Life' slogan and this new level of sponsorship reflect the RE/MAX commitment to the breast cancer movement and Premier Community Citizenship.

I am so excited and honored that my company has stepped forward to support such a worthy cause in the national spotlight.  Locally, RE/MAX Honolulu participates in the annual event every year and my family and I have and will continue to participate and support fundraising efforts.  Click www.clairehellam.com/race to take a look at last year's event. Too fun!

First of all, thank you for visiting my site.  I want my visitors to know that I am the neighborhood expert West of Honolulu.  I decided to bring my knowledge and experience to those who are relocating.  I plan to show you, "My Hawaii" from my eyes... so that you can catch a glimpse of neighborhoods before setting foot on O'ahu. I think I'll start with Ko'olina.  Please keep on checking back to see what neighborhood will be featured.  If you have Neighborhood Feature request, please tell me and I'll cover it on ClaireHellam.com! 

Happy day after Election Day!  I hope everyone went out and voted!  What a historical day it was!  I was inspired when I saw hope in the many faces at the precinct where I voted and everywhere else on the mainland as we saw the feeds from the media.  Today, I am happy and blessed to be an American in this wonderful country of the free.  I hope you feel the same too.

   God Bless America!

Aloha friends,

It's been a while since my last entry, but I must advise those who are currently living in a home that they own and they would like to convert it into a rental after an upgrade to another home...it's best to have pre-marketed your rental prior to close of escrow on your new home.  In many cases, lenders may require you to have a lease agreement in place with security deposits made from your new tenant. 

Sounds crazy, but these are just a few of the lending guidelines that have changed in recent months.  It's always best to plan for the worst case scenario...you just may lose that new home you love.

-Claire

My family just loves the Summer Olympics.  We have been glued to the television since Friday.  What a spectacular opening ceremony created by the Chinese.  I hope you had an opportunity to witness the enormity, complexity, and technologically advanced show EVER! To put it in one word, it was breathtaking!

Take a look at this picture that was sent to me from Kodak.  WOW!

I hope you will take part in the Olympic Spirit over then next two weeks.  The theme, "One World, One Dream" embodies the Olympic ideals of: Unity, Friendship, Progress, Harmony, Participation and Dream.  It's a pleasant reminder in our own lives here on Oahu that it is truly one world and a dream of many for peace.

 GO! U.S.A.!

Being a military spouse, I have a soft spot for service members.  I have a lifelong mission to help those that are serving our country in anyway that I am able to.  That's why I was happy to hear of a new piece of legislation that President Bush signed into law on July 30, 2008. 

The American Housing Rescue and Foreclosure Prevention Act is a comprehensive bill that will also protect veterans from foreclosure for up to 9 months after they have separated from active duty.  In order to qualify, the loan must  have been originated BEFORE January 1, 2008.  As of March 1, 2008, your mortgage payment must be at least 31% of your monthly income.

To learn more, click on to the following link: http://thomas.loc.gov/cgi-bin/bdquery/z?d110:h.r.03221:

Have a great Saturday!