Condo For Sale in Mililani

I listed this beautiful little condo in Mililani for $309,000. We got an offer after just 9 days, but we are still in negotiations. So it's available if you want it!

It's located in lush Launani Valley, which is the North end of Mililani. Very green mountains with cool air blowing all year. It feels like you're in a tropical rain forest, probably because you are.

This condo has a brand new kitchen, from top to bottom. Appliances, cabinets, sink, everything is new! And check out the great view out the windows to the forest.

Mililani is located in central Oahu, which is a great area that allows you to get anywhere on the island in under about 30-40 minutes with no traffic. You can get downtown faster from Mililani than from the Ewa and Kapolei areas too.

If you don't like hot weather, avoid the West side, and consider Mililani. It's cheaper than Kailua or Kaneohe, but the weather is similar. Also the homes are cheaper. This same condo in Kailua would cost you around $425k.

How to negotiate when buying or selling a home in Hawaii

One of the most important skills a Realtor must possess is that of negotiation. It's one thing to market and make a house look nice, and even to get people to bring in offers, but the bottom line is almost always the price. (Sometimes it's the timing.)

So let's take an example from my recent negotiations. Suppose you're my client on a purchase, and we want to buy a house that is listed for $700k in Kailua. You like the house and you're willing to pay about $680k for it. What should you offer?

Not so fast. The fist step is to find out as much information about your seller as possible. Is he buying a condo somewhere? Is he in escrow already? Is he moving to the mainland? Has he already bought another house in Kaneohe? Is he paying two mortgages? Is there a divorce or a marriage? Kids? Job transfer, layoff, or promotion?

All these things can be discovered in a few short minutes by talking to his agent. If his agent is smart, he won't reveal a lot, but you would be amazed at what people are willing to disclose once you show them that you are a nice person who is not going to be disrespectful.

So based on the information you get about the seller, you might realize that the seller really wants to close fast, or close slow and have a big non-refundable deposit. Or you may find that the seller is in a bind on his mortgage, and it would help if he could get some rent from you before closing.

The point being, sometimes you can put things in the contract that are about as valuable as money. I've had sellers take very low offers because we offered to close quickly, or because we offered to move in and pay rent up front.

I've also had buyers pay more to move in at their timing, which is sometimes slow. I've had buyers willing to pay more if the seller is willing to stay in the house after closing and pay the buyers some rent.

So take our Kailua house for $725k. If you want to pay $680k, and you know the seller is motivated, what should you offer? Probably something closer to $660k, so the seller has room to counter offer. But first, you should check and see if the price is going to be offensive, and cause them to not respond.

Usually I'll prepare and offer and then call the listing agent to see if our offer is going to result in some bad blood. Often, just talking about it ahead of time can make it easier for the seller. If they know that we aren't trying to be offensive, then it can make things smoother. In Hawaii, there isn't really a standard amount that you can offer below an asking price, but when I represent sellers I tell them to expect low offers that we will counter offer and get to where we want.

When I'm functioning as a listing agent, I tell my sellers to take a position of strength. Do we need to hold out for a good offer? Maybe we need to keep countering on low offers to keep the process going, so that other people who are interested can know that we already have an offer.

When you're negotiating the difference of tens and hundreds of thousands of dollars, you want a strong Realtor who is willing to do what it takes to get the best deal for you, whether you're the buyer or seller.

It's kind of like playing Poker. Sometimes you have to act strong when you're weak. Maybe that's why I like it.

As for the house in Kailua, I can't disclose the price yet because we're still in escrow. But we did pretty well...

Aloha Airlines shuts cargo - you should be living on Oahu

Yesterday Aloha airlines closed its air freight business after its lender, GMAC, cut off financing. Aloha was responsible for 85 percent of all goods flown between O'ahu and the Neighbor Islands.

Everybody on the neighbor islands is going to be massively impacted by this. The Big Isle, Maui, Kaui, Moklokai, Lanai, everybody except Oahu. Retailers and wholesalers of baked goods, produce, meat, medical supplies, newspapers, auto parts, construction materials, and just about anything on those islands that comes from Oahu, which is just about everything!

Who will step in? Hawaiian air maybe? The Hawaii Superferry is an option for for some, but so far only serves Maui and O'ahu, so what about Kaua'i and the Big Island?
Grocers were flying in fruit and vegetables from O'ahu everyday. Before the late 1980s, so people will have to go back to the way it was - slow and expensive.

Even if another air carrier comes into the market, they are likely to charge higher prices.
And THIS is why you should live on Oahu and not the neighbor islands. Sorry to our friends on Maui, Kauai and the Big Island, we wish you the best and hope everything works out.

Buying a house in Hawaii with zero down - Yes you still can

While most lenders on earth have stopped doing 100% financing of any kind, there are still 2 ways (that I know of) to get a house for zero down in Hawaii.

One is to use a VA loan, which is now one of the best deals out there. There is no monthly mortgage insurance, and instead a 2.15% funding fee at closing. All you have to do is be in the military at some time and get your "certificate of eligibility." The VA loan goes up to $625k with zero down, and they actually will go above that.

If you want a buy a house in Hawaii Kai or Kailua, or anywhere in East or Windward Oahu, you'll need quite a bit more than $625k. Well the VA will in fact give you that loan, as long as you have 25% of the amount above $625k. So if you are buying a house in Kailua for $700k, you just need $18,750 down. You can still finance the closing costs through seller credits, and also get some of your debt paid off too. VA is awesome.

The other way is to join Navy Federal Credit Union, which has zero down up to $850k if you have good credit. Nave Fed also has terrible customer service, maybe the worst I have ever encountered. Getting a loan from them is like getting teeth pulled without Novocaine. They apparently have no concern for customer satisfaction or retention. Every client I have ever worked with that used Navy Fed hated every minute, but the interest rates and zero down loans programs are often hard to beat.

In order to join Navy Federal CU, you'll need someone in your family to have been in the Navy, or you need to work at a Navy base, or have some ties to the Marines. I don't know how they actually verify the info though.

So yes you can still buy a home with zero down in Hawaii, up to about $850k. And there is some discussion about raising the loan limit on VA loans in Hawaii to about $793k, which is the current temporary conforming limit.

Falling real estate prices at resorts - Another reason why Oahu is better than Neighbor Isles

The Advertiser report today that at the end of 2007, Hawaii resort real estate sales (mostly on the Big island and Maui) declined 20 percent last year to 1,535 properties. While average prices rose 22 percent to $1.6 million for the full year, prices fell the second half of the year.

761 of the 1,535 Hawaii resort real estate sales were for under $1 million, down from a year earlier when 1,119 of 1,914 sales were under $1 million.There were 160 sales for over $3 million last year, up from 133 in 2006. That's pretty amazing. I guess the recession hasn't hit the very wealthy.

These numbers count Oahu real estate sales at master-planned communities with resort zoning, which includes Ko Olina Resort but exclude sales in Waikiki. But most of the numbers come from Maui, Kauai, and the Big Island, where there are a lot more large resorts. On Oahu, Ko Olina is the only big resort selling property. Sure there are some condos at Turtle bay, but nothing big enough to effect our market here.

That's a big reason why Oahu's real estate prices have remained stable while prices in Maui, Kauai, and the Big Island have seen sharp declines. Our market is more for people who live here and work here, meaning owner occupancy is far higher on Oahu than the Neighbor islands.

That helps our market stay stable, as investor speculation is lower, and recessions effect vacation homes and investment properties more than they do owner occupied properties.

So if you're considering buying property in Hawaii, Oahu real estate once again sounds like the best investment.

This Kailua house is in escrow

Some clients of mine have this Kailua home in escrow as of this weekend. It's a great old house built in 1968 with 2,586 sqft of space, which is listed for $725k. It's a big house which has 5 bedrooms and 3.5 baths., which is divided into two separate units.


This house has 2bedrooms and 2baths upstairs and 3bedrooms and 1.5baths downstairs w/separate entrances. Many houses in Kailua have a 2nd unit that is either rented or used by extended family.

Since the average price of a starter home in Kailua is about $700k to start, and over $1million for a nice renovated home, many people have some kind of second unit to reduce the costs.

Besides the beach nearby and the great town, one of the advantages of Kailua is that the drive over the Pali into town is usually pretty quick, at around 20 minutes.

Great new-ish house in Hawaii for $689k

A client of mine flew in this week and bought this great house in Royal Kunia, which is listed for $689k after a big price reduction from $715k. With over 2100sqft and a golf course and ocean views, you can see why he is very excited about this home, which was built only 3 years ago!

As we inspected this house, I found several things that were really great about it, things that are not that common in Oahu real estate. I know these things might sound small, but they all add up to a really great property for a great price.

• It has wired lighting all around the outside.
• It has a huge attic space for storage, where we also found the house has high tech insulation. Not too many houses here have any insulation at all.
• Huge area for workspace or for parking 3 motorcycles in the garage.
• The kitchen vent actually vents outside instead of recirculating. I know this is standard on the mainland, but for some reason in Oahu there are tons of houses with no outside ventilation in the kitchen.
• Upstairs loft and adjacent office space. Both huge spaces!
• Glass door on the pantry. We all loved this feature.
• Short walk to a great private park for the Royal Kunia home owners.

There are a lot of other factors, but basically this house has it all, and just think about what you get for about that price in Hawaii Kai or Diamond Head - probably a near tear down! So if you have about $700k and you want a nice new house, but without all the traffic of Ewa Beach, consider Royal Kunia. Nice new homes, great prices.

Hawaii Kai condo - in escrow

I currently have this nice Hawaii Kai townhouse in escrow at Nanea Kai. I've posted about this complex before, a great complex built in 2003 with 3 story units as large as about 1600ft.



The one I have in escrow is 1582sqft with 3bedroom 2.5 Baths and a nice Lanai of 80sqft. It also has some nice views of mountains and you can see a tiny sliver of ocean.

As you can see they have nice kitchens, and when upgraded well, these townhouses can feel very luxurious. This one has wood floors, stainless appliances, and wood blinds. The new owners may install shutters.

Nanea Kai is right in the center of Hawaii Kai, so you can easily get to town within 20 minutes, and Costco is just a short walk down the street.

Since the complex was built in 2003, it has all the modern amenities, except for a pool, which keeps the monthly association fee down to about $300. Fortunately, the Oahu club is just a quarter mile down the road, where you can get their swim and tennis membership for about $100/month.

I like Nanea Kai because for the same price you can't get much of a house in Hawaii Kai, and these townhouses were well built by Schuller and Dr Horton. They have great floor plans and most have a 2 car garage. They kept everything outside sort of minimal to keep the fees down. No gym, no pool, no park, no tennis, no frills, but great townhouses.

What you get for $650k in Oahu Real Estate

The median price of Oahu real estate is currently $658k, but what can you get for that price?depending on which are you want to live in, it's very different.

In the best areas of Oahu, you can get a nice condo or town house, or even a small older house near the beach for about that price, and farther out West in the suburbs, you can get a nice brand new, larger house ith all the modern amenities. If you want to buy a house for $700k, it will cost about $4500/month including taxes in Hawaii, assuming you have 5% down and your credit is good.

Kapolei - for about $670k you can get a house like this one with 4bedroom 2100sqft, built in 1993. There are newer homes too, which might be a little smaller for the price. Kapolei is a great new master planned community with nice new schools, roads, and everything else. It's called the second city on Oahu, because all the new growth is happening there. The new courthouse, new roads, new shopping (Target), and a lot more planned growth is happening in Kapolei.

Royal Kunia - Just North of Ewa Beach is a great little neigborhood called Royal Kunia. 3bedroom 3bath home of about 2200 sqft, built in 2003. The areas has some nice new parks and schools, although not a new high school. There is plenty of shopping nearby, but a good beach will be about a 20 minute drive to Kapolei, at Ko Olina.

Homes in Royal Kunia have been well cared for and are mostly built after about 1995. There are some nearly new ones, and plans for more new homes are in the works for a few years from now.

Mililani Mauka - 3bedroom 2 bath 1650sqft built in 1991. Mililani is one of the nicer areas to live in, considering the nice cool weather year round, lush trees and mountains that get plenty of rain, mostly at night. Also Mililani has some of the best schools on Oahu, with consistently high ranking test scores and teacher reviews.

If you live in Mililani you can easily get to the North Shore beaches in about 20 minutes, and it takes about 30 minutes to get to downtown Honolulu. Homes in Mililani tend to be newer on the Mauka side, where development began only about 15years ago. You get a little less house for the money here because it's more desirable than west Oahu, but it's certainly worth it to live in the beautiful mountains.

Diamond Head - Arguably the best place to live in Oahu, Diamond Head has a lot of little areas that can range from multi million dollar mini mansions to older, smaller, cheaper areas like Palolo and Kaimuki. For $675k I found this nice little house in the St. Louis heights. It's only 1000sqft, with 3bed 2bath built in 1953. As you can see, money doesn't go as far in the Diamond Head area, but you get to live right near the beach, Honolulu town, and everything that you need. It's probably the most desirable area on Oahu, so you can expect to get anything close to the kind of houses you get on the West side or in Mililani, or anywhere else in Hawaii for that matter. But look at this little house and it's cool yellow kitchen! You learn that it's worth it to have less if you get to live in the best areas.

Ewa Beach - 1846sqft built in 2006 with 4bedrooms, 3baths, and 2 car garage. Money goes a really long way in Ewa Beach, and here is a house in Ocean Pointe that is as good as most houses on the mainland. This development is still under construction, and it's just down the street from the beach. Of course, the beaches are not as nice in Ewa as they are on the East or North shores, but hey it's still Hawaii. Ewa has several new developments going in, with a new golf course under construction. I think there are now 5 courses in Ewa.

Since Ewa is just a couple miles from Kapolei, you can enjoy all the amenities there, like the big new movie theater and the new Target coming soon. Also Ocean Pointe has a great new school that everyone wants to get into.

Hawaii Kai - It's my favorite place in Oahu, and for $675k plus a monthly fee of about $450, you can get a very nice newer townhouse in the Peninsula, Moana Kai, or Nanea Kai. These developments just popped up in the last 5 years, with great modern feel that also fits right in with the rest of the island. You could also get a small older house in Koko Head that needs a lot of work, but for this price you would be better off with a townhouse. A nice single family home in Hawaii Kai will cost you about $800k.

Kailua -It's every tourists favorite place I think, with the best beaches and a great little town you can walk around. For $680k you can get this little 1959 home with 3bed 2 bath and 1200sqft. It's a simple home with simple single wall construction, and it probably needs work to make it nice. It takes about $850k to get a nice home in Kailua, so you might want to opt for a Kailua condo within walking distance to everything, which will cost you about $500k.

Town - Honolulu is called "town" here, and it's mostly highrises but there are single family homes here and there. Also there are entire neighborhoods of homes that you probably don't notice. For $650k you can buy this 1560sqft home just built in 06, with 3bed 2.5bath in an area full of highrises. You can walk to Ala Moana mall, and of course it's a few minutes drive to everything. However you live right in town, which many people don't like. You might be surprised that it's not more money, but it really depends on the area. There are some really nice areas in "town" that will cost you a lot more.

Now I didn't even mention some areas, like Manoa, Kahala, etc. That's because you can't get anything for that price there. There are a lot of other areas where you can get a small home for about $700k like the North Shore, Aiea, Pearl City, Wahiawa, Kaneohe, and Waipahu.

Oahu real estate March Sales Statistics (again)

There are so many numbers on the monthly statistical report that it's hard to know exactly which ones are the most important. Is it the median price of all single family homes on the entire island of Oahu? That number is very broad, and perhaps an indicator, but not very helpful for understanding if a particular area is doing well or not.

It's also not helpful for understanding whether prices are rising in Honolulu real estate, because it could just be that cheaper homes sold while more expensive homes sat, even if their prices rose.

Then there's the amount of inventory, the number of sales, the number of months of available housing, the number of new listings in each neighborhood, the days on market of homes and condos in Oahu, and of course, the average price, which is different than the median price.

The most helpful numbers seem to be always very specific. If you have a house in Kailua and you want to know its value, it's more helpful to know how many homes sold and the actual prices of the properties than anything else. The median price can be way off if just a few large properties sold on Kailua Beach, or if several small properties sold all at once.

In fact some of the numbers on the Honolulu Home Sales Statistical report can be completely opposite of each other, depending on how you view them. For instance, in Aina Haina this March, the median price was $1million even, with 7 sales, which is up from last March's $990k. However, year to date the median price is $895k, which is down 22% year to date compared to 07 year to date.

So is the market in Aina Haina up or down? These summarized numbers are not helpful at all in knowing the answer. The answer can only be known by looking at the individual sales, the size of the homes, the quality of the properties, etc. Suppose that the median price went down, but all the sales were tiny little tear down shacks. In that case, a nicely remodeled larger house with an ocean view might sell for $100k more than it would have last year, even though the median sales prices in the area are down.

Another factor is that some months you might have very few sales, which can dramatically effect the median and average prices. For instance, in Honolulu, 57.1% more homes sold in March of this year than last year. But that's because only 14 homes sold last March compared to 22 this March. Is that really a huge rise? Not as huge as 57.1% makes it sound. Year to date, the number of sales is actually down 10%, so the monthly numbers are pretty deceiving.

I could walk around and tell people that Honolulu home sales are up 57% since last year, which is true, but not the whole story. Prices are up 4% year to date, which is probably the most helpful number in this case.

So when you hear people throw around statistics, you have to know what they mean, how to interpret them, and their context. Knowing the entire market is the only way to really understand how things are going.

And that's why it's a full time job selling houses...