June 2016 Maui Market Trends – Brexit Impact on Maui

June 2016 – Brexit Impact on Maui?

Aloha!  June has brought tumultuous global news with Brexit – the British voting to leaving the European Union. Most global predictions for the economic future are not very positive.  Certainly we are affected by almost anything that impacts the U.S. economy. With elections coming up, news of interest rates going lower we may see many Americans cautious about investing. A reasonable part of our market is our Canadian friends who have slowed buying due to low CAD / U.S. Dollar  ratios (0.77 at this time).  Predictions show that many think Brexit will keep that from changing for a long time.   We’ve been predicting an influx of Asian buyers, but we have not seen that in large numbers.

I must admit that I haven’t come to clear conclusion on how Brexit will impact Maui real estate.  But as in most tumultuous economic news, people want to put their money where it will be safe –  and real estate appears to be a good long-term option.  World populations are growing faster than supply.  The world’s wealthy seem to keep getting wealthier.  Interest rates will be low for some time.  And Hawaii is still a beautiful place to live or visit.

Here are some of the better articles I found on the topic:

This offers a mix of predictions and surprisingly none mention Maui or even Hawaii.  I see opportunity!

The Maui Market Trends – June 2016

Once again we see that June was a pretty steady month.  There were increases in sales of both homes and condos. We had an increase in prices of homes and 3 month trend of decreasing prices for condos. That is pretty typical adjustment at this time of the year; if our market were big enough to show “seasonal adjustments”, I suspect it would be considered normal.  Inventories have been fairly stable throughout 2016.

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.

 

 

2016_06MauiForeclosureTrends

Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

 

June 2016 Maui Market Trends – Brexit Impact on Maui

June 2016 – Brexit Impact on Maui?

Aloha!  June has brought tumultuous global news with Brexit – the British voting to leaving the European Union. Most global predictions for the economic future are not very positive.  Certainly we are affected by almost anything that impacts the U.S. economy. With elections coming up, news of interest rates going lower we may see many Americans cautious about investing. A reasonable part of our market is our Canadian friends who have slowed buying due to low CAD / U.S. Dollar ratios (0.77 at this time). Predictions show that many think Brexit will keep that from changing for a long time. We’ve been predicting an influx of Asian buyers, but we have not seen that in large numbers.

I must admit that I haven’t come to clear conclusion on how Brexit will impact Maui real estate. But as in most tumultuous economic news, people want to put their money where it will be safe – and real estate appears to be a good long-term option. World populations are growing faster than supply. The world’s wealthy seem to keep getting wealthier. Interest rates will be low for some time. And Hawaii is still a beautiful place to live or visit.

Here are some of the better articles I found on the topic:

This offers a mix of predictions and surprisingly none mention Maui or even Hawaii.  I see opportunity!

The Maui Market Trends – June 2016

Once again we see that June was a pretty steady month. There were increases in sales of both homes and condos. We had an increase in prices of homes and 3 month trend of decreasing prices for condos. That is pretty typical adjustment at this time of the year; if our market were big enough to show “seasonal adjustments”, I suspect it would be considered normal. Inventories have been fairly stable throughout 2016.

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.

 

 

2016_06MauiForeclosureTrends

Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

 

Fire, Accidents and the Maui Pali

Fire and the Pali

Pali in Hawaiian means “cliff”.  Maui’s Pali is the road to Lahaina where you leave Ma’alaea and creep around reinforced cliffs and through the tunnel. Any visitor to West Maui knows the Maui Pali. Beautiful and breathtaking in good conditions, it can be very hazardous.

My Recent Experience

On July 2, 2016, I’d jus spent 2 hours doing volunteer outreach at the Maui Ocean Center.  On the way over, I noticed that the winds were super strong and our windmills on the hills were all creating lots of energy! My shift ended shortly after 1:00pm and we secured our outreach material in the usual place. I was planning on meeting a friend and her son to enjoy an afternoon looking at fish.  When I texted her, she said they were stuck in traffic due to a fire.  I decided to grab something to eat at the Cafe and commented to the young woman working that the winds were horrible today. She said “What is horrible is that smoke coming right at us”.  I turned to see and immediately started coughing.  I quickly ate my lunch as my friend said they’d arrived.  We decided to delay the tour to another day and get out of danger.

I went outside and took this video on the way back to my car. I was nearly taken off my feet by the wind and the noise was haunting. While I was curious, the survival instinct kicks in and said “Get out of there!”

Click here to view the embedded video.

The traffic was still flowing toward Lahaina and I was surprised they hadn’t close the highway.  The flames in some places were very close to the highway.  Just out of Ma’alaea, you hit the Pali where the road winds around the barren cliffs and the wind flashes down the gulches. There was little control of the situation because the winds were 25-50 mph!  Fire moving fast. As, I drove home, traffic was stopped near North Kihei Rd.  I snapped this photo; it appeared that the fire started near the intersection of North Kihei Rd but up the hill a little.  I thought, that is the area where Spencer Homes just said they won’t build affordable housing and listed 258 acres for sale for $9,975,000.  In our little town, that made front page news. I kept driving with flow of traffic until I got on North Kihei Road and could safely pull over.

And another video — This time I narrated. I was in awe and fear.

Click here to view the embedded video.

Monitoring The Status

I spent much of the rest of the day tracking MauiWatch to see updates.  We were lucky to have power and not lose internet access like much of the West Side and parts of North Kihei did.  They did close the road to Lahaina and later stopped all traffic on North Kihei Rd.  The evacuated the Ma’alaea Harbor Shops and homes. They finally reopened the road at 7:40 only to close it again at 8:20 p.m. They had to close the backside road too because there was too much traffic.

On social media I saw desperate tourists trying to get to the airport or not knowing what to do because they could not get to their hotels or even call them. They were mad and angry. It was further complicated that the fire took out internet, phone and power to many areas. Deserted tourists asked how can a place like Maui not have alternate roads; I don’t think they have a clue how remote and treacherous the West Maui Mountains are.  Only a few people have successfully hiked across them.  People who have lived here for awhile, generally take it in stride. Building a highway? That is not the Maui way. While this was one of the worst, fires in that region happen almost every year, closing the Pali for hours.  And if it is not a fire, it is a fatality or a bad accident.  Essentially the only route to the West Side of Maui becomes impassable. Locals that drive the Pali often know to keep water, snacks and sunscreen in their car. My estimate is that 4+ hours of shutdown happens 2-3 times per year.

Closing Thoughts

If you prefer the West Side of Maui or the resorts of Lahaina, Ka’anapali, Napili and Kapalui, recognize that there may be times when access is limited due to the closure of the Pali. Practice Aloha or choose Kihei, Wailea or other areas of Maui.  The same message applies for Hana. Don’t complain; we are remote and that is part of what makes Maui No Ka Oi.

 

May 2016 Maui Market Trends – Predictions Up or Down?

May 2016 Maui Market Trends

This month, we’re talking predictions. Many agents across the country are saying they are seeing their markets softening. This often happens before a presidential election due to uncertainty. Economists have shared some concern about the economy. While sales are strong across most of Maui, our prices have shown some declines, especially in vacation home markets.

The U.S. Market – June 2016

I turn to NAR – The National Association of Realtors and Keeping Current Matters for national data and their projections.

Recently, Freddie Mac analysts said, “We expect housing to be an engine of growth. Construction activity will pick up as we enter the spring and summer month, and rising home values will bolster consumers and help support renewed confidence in the remaining months of this year.” And Warren Buffet said, “I don’t see a nationwide bubble in real estate right now at all.”

Source: Gallup poll 2016 via Keeping Current Matters.

Recent Gallup polls explored confidence in real estate investments by gender and age and it seems most Americans think real estate is the best investment.

Vacation home sales in 2015 were down from 2014 but are still the second highest since 2006. It is no surprise that 40% of vacation homes are in beach areas.

 

Mortgage and Financing Trends

Screen Shot 2016-06-08 at 4.43.12 PM
Screen Shot 2016-06-08 at 4.43.52 PM

Mortgage rates continue to be at very low rates and again analysts predict that will change in the next few years. They’ve predicted that for 3 years now but it is bound to happen soon! There is money to lend and lenders are still conservative. But many people are surprised by what they can qualify for. If you are considering upgrading, now is a very good time!

The Maui Market Trends – June 2016

I’m not seeing any significant changes in looking at major areas. This does not mean that there isn’t a change in a specific market. For example, I have a client with a lovely oceanview, 2 bedroom, 2 bath vacation-rentable condo in South Kihei. By all Maui standards it is a spacious 1214 sq. ft. So I looked at South Kihei vacation rental condos over 1000 square feet and found that average and median prices have declined 20% in the last year. That is pretty significant. So markets can be very local.

That said, I think overall the Maui market is going to gradually grow. The vacation rental areas popular with Canadians will be slow until their dollar comes up a little. We still have a huge shortage of affordable housing in Maui. They are calling an investor/landlord summit to try to address this shortage before they lose HUD funding. Yes, we have a lot of new developments, many with an affordable component but these are not HUD homes or HUD rentals.

If you are interested in finding out more about the new developments or you’d like to participate in the investor/landlord summit, contact me at 808-344-0469.

Questions or comments? Need help with Buying or Selling or just understanding the market?
I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports

Click on the report and it will be brought up in a new window.

Maui Full Trends Report. 12-page PDF report showing trends for each Area of Maui.

 

Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

Take 45 Seconds to Enjoy a Beautiful Maui Sunset

The sound of the waves, sand on your toes, and the beautiful Maui sunset.

Mahatma Gandhi once said, “When I admire the wonders of a sunset or the beauty of the moon, my soul expands in the worship of the creator.” I couldn’t agree more. Just by simply watching this beautiful Maui sunset instantly lifts my spirit and makes me appreciate nature. It’s very easy to be too wrapped up in our daily lives that we often forget there’s a whole world out there we have yet to explore, even for just short amounts of time. So here goes a short but nice video of the waves and random people having fun all while the sun sets. Enjoy!

 Video taken from my iPhone 6+ at Charley Young Beach, Kihei on the beautiful island of Maui.

Kihei Beaches – The Real Scoop about Water Quality

Beautiful Kihei BeachesAs an agent, I often hear other agents advise their clients —  “South Kihei beaches are much cleaner” or “You don’t want to enter the water in North Kihei” and “That’s why North Kihei values are lower than in South Kihei”.  As a volunteer knowledgeable in water quality, there is some truth and mostly not truth in these statements. I’m far from a scientific expert though I have talked to some of the best scientists looking at the issues. Kihei has some of the nicest beaches in Maui – about 6 miles worth! There is something for everyone.

North Kihei Beaches have Poop?

A recent article about Kihei water quality in Maui Time was titled “Poop“.  The title is totally sensationalized however it does cite some good resources. They are comparing apples and oranges. The article claims that the Kihei beaches are far worse than the Lahaina waters where the EPA is suing Maui County to clean up it’s act.  With what I know, I absolutely don’t believe that and am happy that the EPA took action in Lahaina. While I am concerned about water quality in Kihei and would love to see improvements to the system, I’m more concerned in other areas of Maui.

The problem source is the Kihei Water Reclamation facility that is located mauka of the Pi’ilani Highway near the new Police Station. Most of Maui water is treated using injection wells. At various treatment plants around the island, they treat sewage and put the treated water into injection wells.  The plants pumps water to depth but the treated water does eventually migrate to the ocean. This is happening at a much faster than they believed when systems were designed (2 years vs. 8). Lahaina Wastewater is treated at lower level than in Kihei which is the major problem in Lahaina. Lahaina water has been shown to have contaminants that contribute to MRSA outbreaks.  The water the Kihei facility puts into injection wells looks clear enough to drink.  It is distributed and used as recycled water at golf courses and school campuses.  Here is a article that describes details of Kihei’s water reclamation facility.   The article doesn’t tell us what the impact on our oceans is. The treated water does have more nutrients that create an great environment for seaweed to grow. While seaweed is normal on all our reefs, it grows much faster and covers much more reef in impacted areas.  Some Kihei beaches are filled with dead seaweed many times of the year; if it sits on the beach for awhile it stinks and gathers flies. My experience is that the worst area is just north of Kalama Park where there is a pumping station near the Kihei Fire Station. The ocean currents along the Kihei coast, flow North so there tends to be more nutrient rich material along North Kihei beaches. That said, by the time you reach Sugar Beach, lots of seaweed is a rare occurrence.  Having personally tested and observed water from many points, there is no “poop” in the water.  In my experience, when people say they saw poop floating, it is usually right after a coral spawn and what they see is the dying coral spawn glopped together.  Others will say it is turtle poop, but I personally haven’t observed or tested that! The water I’ve tested is just as clean if not better than points in Wailea and South Maui.
2-aerial

In my opinion (and I do live in North Kihei just up from Menehune Shores), the bigger issue that impacts the property values in North Kihei are the afternoon winds which are much stronger than further south.  Just today while previewing North Kihei condos, I had by dress blow up over my head; luckily few were around to see.  It can be fun to watch the afternoon kite-surfers and colorful kites but you’ll get sand blasted if you try to lay out on the beach!  The second  reason is that North Kihei has Sugar Beach which is the longest stretch of white sand beach on Maui.  While people do like sand beaches, long beach stretches do not lend themselves to having the coral reefs and colorful fish that many visitors love to see.

If you love big ocean views and long walks on the beach, North Kihei may be perfect for you.  North Kihei has many more oceanfront condos than South Kihei.  Most South Kihei condos are across the street from public beach parks and the few on the oceanside are very expensive.

Looking at sales in the last year (May 2015-2016) and selecting fee simple, vacation rental condos with an ocean view, here is a quick price comparison:

Property Location (# Sales) Low  Median High
North Kihei Oceanfront (41 units) $257,000 $444,000 $850,000
South Kihei Oceanfront (10 units) $675,000 $1,435,000 $1,830,000
North Kihei Oceanview (8 units) $210,000 $263,500 $399,000
South Kihei Oceanview (50 units) $263,000 $418,000 $840,000

I do have a favorite North Kihei Best Buy that is the one of the most expensive listings in North Kihei at $995,000.  Usually when a unit is listed as ocean or beachfront, that means the complex is oceanfront.   This unit is front and center on Sugar Beach just 10 steps to hours of peaceful beach walks.  The first floor Nani Kai Hale unit has been elegantly remodeled and has a huge private lanai for amazing beach parties.  Check this beautiful unit out here.  Call me at 808-344-0469 if you are interested in this property or comparing any Kihei properties.   Kihei offers a perfect mix of options for every buyer!

April 2016 Maui Market Trends

April 2016 Maui Market Trends

In April, we saw some major upturns in units sold and average prices of homes (up 36%).  While that sounds like upward movement in Maui Market Trends, I just see some peaks and a gradual upward trends. We saw the number of sales over $1 million peak to 22% from it’s average of  15% which logically would reflect in the average prices increasing. Looking at all classes (condos, homes and land) the median price was at it’s highest point since February 2009!

Looking at the trends over time and future pending sales, I’m not seeing those peaks as major spikes, just steady upward movement in the Maui market.  Inventories are down slightly to 8 months with residential down to 5.4 months.  Interest rates are still low so don’t wait to make your move.

There is talk at the national level of some market softening but I don’t really see that even on this quick video that tells you about the national market. I think most of that is just based on following market cycles and people thinking we are at time for a downturn.   Certainly with elections coming up, there is uncertainty in the markets.  No matter what side you are on though and how crazy you think the other side is,  looking over the years, this is a good time to sell and/or buy.  The Maui market is stable so it’s a good time to think about a move.  Rents are skyrocketing, there is plenty of financing (even with 0% down) so renters with decent credit should consider buying.

Click here to view the embedded video.

Quick update – last month the Canadian $ hit 80 cents for a few hours.   Now it is at 78 cents.  I still think that when it gets up to about 90 cents, the Canadians will start buying a piece of Maui again, causing an increase in prices.  I don’t follow the politics in Canada but would be happy if some friends to the North might estimate when this might happen.

Questions or comments? Need help with Buying or Selling or just understanding the market?
This month I am offering FREE real estate reviews. You don’t need to be thinking of buying or selling now to benefit. Often your home is a primary asset, so meet with a real estate professional to find out what your property is worth and what your options and strategies may be! Please ask below or call or text Kathy at 808-344-0469.

View the Detailed Maui Real Estate Market Reports

Click on the report and it will be brought up in new window.

Maui Full Trends R1eport. 12-page PDF report showing trends for each Area of Maui.
Maui Full Trends Report. 9-page PDF report showing trends for each Area of Maui.

 

Maui Market Foreclosure Trends – month by month summary of REO and short sales in the Maui Market.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.
Maui Market Snapshot. 1-page PDF report showing trends for each Area of Maui.

Maui Seasons – Where Have All the Tourist Gone?

🎶  Where Have All the Tourists Gone? 🎶

Quiet Charley Young Beach in MayToday you can take a left turn on South Kihei Road – almost without looking.   In the course of a couple weeks we’ve gone from waiting for 5 minutes to take a right with a left being impossible –  to no traffic at all. The beaches have a few people scattered. That is our Maui seasons.

The weather is still great here but vacationers are enjoying spring at their homes and waiting for school to be done. Our whales are gone but there are still plenty of great ocean activities.

Many people ask – What are the Maui Seasons? 

Our peak tourist season is our Winter.  We are still above the equator so Maui experiences the same summer and winter patterns as most the continental U.S. and Canada.  We have a typical school year so we have kids in/out of school similar to many other areas.   Our weather really does change.   We don’t change enough to have Daylight Savings Time. Our sunrise/sunset times during the year are not drastic but vary between 5 and 7.

Maui Seasons – The Weather

Maui Winter Sunsets are the bestWinter is the rainiest Maui season.  The Windward side  of the island experiences rain almost every day. Weather patterns come across the Pacific and usually smack into the island on the windward side.  On the “Leeward side” (in the lee of the mountains), like my home in Kihei, you get occasional rain. Even more rarely we get rain that lasts for days. Cold weather in Kihei means it drops below 70°F.  Most days are in low 80’s.  If you are upcountry (above 1000 feet up one of our majestic mountains), you can experience much colder weather dropping into the 40’s.  We have snow on the top of Haleakala (10,000 feet) a few times a year.   Occasionally there is a “Kona Storm” from the southwest that hits the leeward areas and can dump warm tropical water across Maui.

Spring – Rain is common in windward areas but rare in leeward areas.  Weather is very pleasant.  This is when the ocean temperature is at it’s coolest.

Summer – It occasionally rains in windward areas but rarely elsewhere.  Summer temps regularly are between 90-95°F in low lying areas.  Tradewinds coming from the Northeast are predominate.  It can be hot and humid but still is pleasant at the beach.  End of summer is when Hurricane season begins but they have seen hurricanes as early as June.

Low Season at Ka'anapaliFall —  See spring except that ocean temperatures are the warmest.  Weather tends to stay hot through September.  Hurricane season is in full throttle.  Some years that means we get a tropical summer storm or two.  Others we have emergency preparations and prepare for the worst that rarely happens.  Hot off the press for 2016 – After record-breaking hurricane season, 2016 expected to be tamer.

Maui Seasons – For Tourists

The best way to see specific dates for a season is to visit almost any condo site on VRBO.com.  Since a peak number of visitors mean higher prices (supply/demand) there is direct correlation.   The dates given below are just estimates and varies year to year.   Here is typically what you will see in order of highest prices:

  1. Holiday – Dec 16 – January 10.   Christmas in Maui – Live the dream!
  2. High Season – January 11 to April 20.   This is whale season (peak time is February) and where it is cold elsewhere.  The end date is often tied to spring break and Easter breaks.
  3. Thanksgiving – Nov 20 – Dec 1.   This doesn’t always show up in price schedules but it is a busy time.
  4. Summer Season – July 1-Sept 14
  5. Low Spring – April 21 – June 30.  Don’t think that just because it is low season, there is nothing to do.  In addition to most normal tourist activities, we also have an Maui Seasons - array of community events and celebrations. Don’t forget the Maui Film Festival in June.  And the jacaranda tree’s blooming Upcountry in May is a stunning site.
  6. Low Fall – Sept 15- Nov 20 – Similar to low spring with lots of community events.  Visit our county fair the end of September.  Also watch for good specials on fine dining as chef’s give back to their communities.
  7. Dead December – If you don’t like other tourists, the first 2 weeks of December is a great time to visit.  It is super quiet here.  All the resorts have their holiday decorations up.  With a few whales, some of the snowbirds start to arrive.

Any time of year, Maui offers warmth, beauty and Aloha! Call me when you come!

Live Where Others Vacation! 

How Much is This Property Worth?

“How much is this property worth?” is not a simple question.  In real estate we define the property value as: The price a seller is willing to accept and a buyer is willing to offer.  This answer is an after the fact answer; it doesn’t help either side get very far.   The truth is there is no crystal ball because there are emotions involved.  There is time and there are contingencies.  One offer at a higher price may actually be worse for the seller than a lower offer.  There are only tools and REALTOR experience to guide the way. No good REALTOR will give the answer; they just guide you to make good decisions.

Making Sure You Don’t Pay Too Much for Maui Real Estate

Property Profile helps determine how much is a Property WorthBuyers – So you finally decided to take the leap and buy that dream house. What could be more exciting and terrifying at the same time than spending hard-earned money on investing hundreds or maybe millions of dollars on that nice house, right? Your best bet is in choosing an agent to represent you. It is easy to be confused by so many options out there. You should want a web savvy agent as more than 85% of all buyers initially see their homes online. Exceptional agents have laptops, a solid system to utilize and of course, unbeatable experience.

Making Sure You Get Top Dollar for Your Maui Home

Sellers – Pricing your home right the first time will make a huge difference.  You set the list price but what is the expert guidance you get to do that?  Should you start with a slightly higher price just to “Test the market”?  We don’t know when that perfect buyer may walk in teh door; are you willing to wait years to make that happen? In most cases where the product has good comparables in the market and there is good flow of homes coming in and out, testing a higher list price is not a good idea. You need an expert who can show you what is happening in the market, who will work with you to put your home in the best presentable condition and help you evaluate your best options to meet your goals.

What is a CMA – Competitive Market Analysis? 

Most REALTORs perform a CMA – Competitive Market Analysis. They’ll perform a CMA when listing a property and usually for a serious buyer to evaluate the real market value of a home. Most will hand over a summary list of similar properties from the MLS with a copy of the property listings.

I go a LOT further an provide a complete Market and Property Profile.  I provide charts and graphs that address the questions and risks that you have. Click here for a complete example of the Property Profile that I typically run.   Below I’ll describe the key inputs to a Property Profile and how the data can address the questions that a buyer or seller has.

Selecting Most Similar Properties

Comparable Properties
Range of prices indicates how much is a Property Worth

In selecting properties, I try to use similar guidelines that an appraiser would use.  Where possible, bracket major attributes:  (by bracket, they mean have at least one bigger and one smaller or better/worse, older/younger)

  • living sq ft
  • lot size
  • view
  • configuration
  • condition
  • age

Summary Values On Front Page

  • Max/Min/Average Sales Price – Based on the 3 or more similar recent sales.
  • Max/Min/Average List Price  – Based on the similar active/pending comparables.
  • Estimated Market Value – Uses the most similar recent sales, adjustments, and weighting to establish an expected sales price. See how adjustments are done below.  Especially when I haven’t seen the property, this is a range.

 

Market Overview

Market OverviewThe market overview gives both buyers and sellers a snapshot view of what is happening in the market.  Are list prices going up?  What is selling?  How much inventory is there?  Is it a Buyer’s or a Seller’s Market?  What is the Competition doing?

Basic Property Information

  • List price – this is the most recent list price and the date that this price became effective.
  • Original List Price – the original list price and list date.
  • Sold Price –  the price the property sold for and the closing date.
  • Maintenance Fee – this is any maintenance fees associated with the property. Usually used for condos.
  • DOM – Days on Market — Well priced properties don’t stay on the market long. Those with high DOM, indicate that the property is priced higher than the market is willing to pay.
  • $/sq ft Living – given the most recent price information (sold price or list price) this is the dollars per square foot.  This is used when properties vary significantly in size.  There is a clause to that though because really large properties have a much lower $/sf value than smaller properties.

On the Comparison Property Pages, you see summaries that show the Adjusted Active/Sold Price – The adjusted active price is useful for sellers in establishing a list price.

Adjustments to Property Worth

The following parameters are adjustments made to the create the expected value. If the comparable is better than subject then the value is negative. If the comparable is worse than the subject property then the adjustment is positive. The easiest way to think of it is “If I took this comparable property and made it like the subject, what adjustments would be required?”

Property Type – Shows food lease terms (FS: Fee Simple or LH: Leasehold) and property type.

    • SF is a single family residence.
    • SFD is a residence with detached cottage.
    • SHO is a single family residence with an attached ohana (living area).
  • Site Size – Size and amenities of the lot.
  • Construction quality–  Values are taken straight from public records. Sometimes these will be adjusted if there is a big remodel.
  • Age – Age of the property.
  • Bedrooms and Baths
  • Living Square Feet

Comparable Property info helps determine how much is a Property Worth

The condition is a subjective value to describe property dwellings and their functional use on the land.  Obviously most properties do not fit perfectly the in one definition below but the definitions give general expectations.  Plus and minus can be used to nudge one direction or the other.  

  • Very Poor – Dwelling most likely needs to be torn down or major remodel to make inhabitable.  It lacks building integrity and is unsafe for living. Often vacant land may be worth more than land with a very poor dwelling.
  • Poor – Dwelling is inhabitable but may need some major work.  Flooring is vinyl, carpet or laminate.  Cabinets are low grade stock and countertops are laminate. Substandard appliances are common. There is often significant non-conforming property use.
  • Fair – Classically, this is a reasonably-maintained rental property.  Usually inexpensive finishes w/mix of tile, carpet, vinyl and laminate on floors.  Countertops are laminate and cabinets are stock. Appliances are lower grade but functional.  May be functionally obsolete (i.e. 4 bedrooms w/1 bath). There is often significant non-conforming property use.
  • Average – Property is in good maintenance but may show signs of being dated based on materials used.  Mix of tile, carpet, laminate on floors.  Countertops are tile or laminate. Appliances are white/black and functional.  Main living areas are functional in their layout and design. Most areas of property are permitted.  Yard areas conform with the neighborhood.
  • Good – Property is well maintained but may show signs of being dated based on materials used.  There is a mix of tile, carpet and hardwood on floors.  Countertops are granite or solid surface. Appliances are all matching and usually stainless.  Main living areas are appealing in their layout and design. All areas of property are permitted. Yards are landscaped with automatic sprinkler systems.
  • Very Good – Granite or solid surface countertops; custom cabinetry. Flooring is hardwood and/or high quality tile.  Bathrooms and kitchen are upgraded in last 5 years. Appliances are < 5 years old and stainless. Usually has outdoor living space, landscaped yard and good views well integrated into living space.
  • Excellent – Custom building materials throughout; floors travertine tile or exotic hardwood.  Appliances are high-end stainless.  Granite/marble countertops throughout.  Usually has in-ground swimming pool, water features, outdoor living space and fabulous views well integrated into living space.

Views/Landscaping:  We talk about the $100,000 ocean view.  Yes it does exist!  But not all ocean views are equal!  I rank view on a 0-10 scale.  With ocean views if you are standing on the property and 10% of the view is blue ocean – that is a 1.  Likewise an oceanfront condo with a skinny coconut tree blocking the blue ocean, that would be a 9! For those properties without ocean views,  I consider landscaping, privacy and beauty.  I also consider, from what areas of the home, can you see the view?  If you can’t see it without going up on the crow’s nest, it’s not the same as seeing it from the main living area!

Other Adjustments to determine Property Worth

  • HVAC – any heating and air-conditioning systems in dwelling.
  • Energy Features – adjusted value for solar water heaters, photovoltaic systems and other energy features.
  • Garage/Carport – the adjusted value based on garage and parking configurations.
  • Decks, lanai, patio -adjustments for outdoor living space.
  • Fence/Pool – adjustments for special features including rock walls, pools, spas and storage areas.
  • Price Date – the adjustment made based on up and downs of the market and the last date the price was established.
  • Other – adjustments for any other significant attributes not covered above.  Every home is unique!
Last but certainly not least, I rank each comparable property relative to it’s similarity.  This is done using a weighted average of the adjusted values.  Location is a top priority so properties in the same immediate neighborhood will be higher ranked than others.  Then size and configuration (3 beds/2 baths), views, pools, etc.
Behind the scenes, I have a complex algorithm that does all the computations to come up with an estimated market value.  I’m happy to share this spreadsheet if you are the analytical type.

Reports Found in the Most Property Profiles

The profile I prepare includes:
  • BUYER/SELLER – Chart  showing Price over Living Area.
  • BUYER/SELLER – Chart showing price/sq ft over time… is the market changing?
  • SELLER – Charts showing Chance of Selling and how comparables in the market are financed. This helps show whether you will face an appraisal or if offering buyer credits may be an option. Odds of Selling Property
  • SELLER – Chart: How Long Will it Take to Sell (averages for the market)
  • BUYER/SELLER: Comparison of Value against Tax Assessments.  In Maui, tax assessments are adjusted every year based on analysis of values – not just a purchase price. While they are usually 1-2 years behind the market, they are an indicator. The tax price ratio is the latest price (list price or sales price) to the  total tax assessed value.  If all the similar comps have a ratio of 1.23-1.30 and a seller wants to list at 1.5 ratio; there is good reason to re-think that choice.
  • Various other tools based on the property.
  • RPR Evaluation Report – This is an auto-generated report. It brings in data from appraisals (new purchase, re-finance, evaluations) so provides another source of data.
  • Zillow Zestimate – Many agents hate Zillow because homeowners see information there and if they like the answer, they take it as truth. In some neighborhoods, Zillow is pretty accurate. I personally love the Zillow technology but caution buyers and sellers that this is one source of data – one that isn’t good and understanding the things that make each home very unique!

With a detailed Property Profile in hand:

  • Buyers will have a good indication of the market value of the home.  Usually, appraisers are really impressed by my property profiles and I’ve successfully challenged them on a few occasions (both high and low).  Something I’ve recently added to my Buyer CMA package is a sheet “How much do you want this property?”  It basically gives ranges of values from “I only want the rock-bottom deal” to “I will be heartbroken if I don’t get this property.”   It is a tool to help you decide what offer to make.
  • Sellers have great indicators showing what the market value of their home is.  They can assess the risks and evaluate the time on market to get the best value and get moving.
Choose an agent who goes the extra step to get the information you need to make the BEST decision.
Call me today for a FREE Property Profile on your home!  Kathy at 808-344-0469

KW ISLAND LIVING – New beginnings!

KW Island Living - Kathy Becklin R(B) - Your Maui Real Estate ResourceI now have a new office, brokerage and mega-franchise – KW ISLAND LIVING. New people, new culture and I’m hoping for a thriving and exciting environment. I’ve always love the KW models. I see a level of professionalism and a sharing environment that you rarely see in other big real estate companies.

While excited, I am also sad to see Aloha Realty Group merge with a bigger company.  We were a small, local group with a good name and logo. What I’ll miss most is our focus on customer needs vs. “The Numbers”. I won’t change that model for me! In some ways it going to KW feels like going backwards. I was with Keller Williams in a different office 4 years ago when I joined Aloha Realty Group. Aloha Realty Group was also based on many of KW principles as Lee and Barb Potts were also at Keller Williams. They will still have a branch office in Lahaina but I will actually like having an office in Central Maui.

A change in company means an array of paperwork, ordering and creating new marketing material. They are helping us transition our listings but I’m trying to identify every profile, website and signature that needs to be updated!

It also means wondering what to do with my 100+ pens and what I call “phone condoms” that say “Aloha Realty Group”. The note inside calls them a “mobile pocket” but I like phone condom. I’ve found them great on my phone for storing my Costco card, keys, an extra pen, etc. They are very flexible and hold everything securely. However, with the old company name, I can not longer legally use them as promotional material. I’ve brainstormed a bit about what to do with pens and phone condoms.  If anyone has needs for a bunch of pens in a beautiful purple color with a sturdy clip, please let me know! IMG_8029

10 uses for a “Mobile Pocket”

– Put on plant containers to hold the stick w/plant name or notes card. They are very durable!
– Put on refrigerator to hold almost anything! Notes for each family member, pens or business cards w/guest wi-fi code.
– Use as label holder on bins, cabinets and files.
– Put on back of large remote to store smaller remote.
– Put on anything as a support mount for your GoPro
– Put on mirror or monitor to store motivational quote of the week.

Do you have any more ideas? I’ve tried figuring out if anything will take the marking off and even the most potent stuff doesn’t touch it. If anyone has a need for “non-promotional” pens and phone condoms, please let me know! I hate to throw them out.