I just returned from the National Association of Realtor’s (NAR) Resort and Second Home Symposium, held this year at Incline Village, Lake Tahoe, Nevada. As a certified Resort and Second Home Property Specialist (RSPS), the Resort Symposium is an opportunity to meet with other brokers who specialize in resort and vacation home properties. We gather to share ideas and solutions, and to hear the latest from industry experts. The headline speaker June 13 was Dr Lawrence Yun, NAR’s chief economist. For the purpose of this discussion, vacation homes and second homes are defined as distinct from investment properties. The later are not intended for use by the owner, and are purchased specifically for return on investment rather than for enjoyment by the owner.

Dr Yun summarized his interpretation of current US second home ownership trends. First, he argued that we have reasons to be optimistic. Claiming the future outlook is bright, he then asked when will the future arrive? We are still in the middle of the the collapse, he said, but according to various data sources, the second home market appears to be holding steady at the apparent bottom of the cycle. Noting that real estate is very local when it comes to second and vacation homes, prices appear to have fallen so low an increase in unit sales is underway in many resort markets.

That certainly appears to be the case in Hawaii Island’s South Kohala resort district. January through May 2010, 70 condo units closed with a median sales price of $400,500. That’s quite a jump from the 33 unit sales during the same time period in 2009, and the $410,000 median price wasn’t much different. In North Kona, which is Kona town, 62 condo units sold in early 2009 with a median sales price of $322,250. For the same time period in 2010, unit sales in Kona totaled 126 with a median price of $262,500.

If Yun is correct, the second half of 2010 should see a continued increase in unit sales, with price declines waning.

The personal attachment we all have to our homes is part of the reason it can be difficult to sell a Hawaii home.

• Homeowners who associate positive memories with a house are more likely to value it at higher than the market rate. This can make it difficult to find a balance between what you think your home is worth and what it will reasonably sell for.
• Staging a home you love (and still live in) can be more challenging than staging an empty space. Packing away your personal belongings (e.g., pictures, knick knacks, books) to give your home a more streamlined and sell-able look for up to months at a time can put a strain on your enjoyment of the home selling and buying process.
• It can also be hard to put all your trust in another person’s hands. Selling a home in Kona and the outlying areas often requires that you have open houses, walk-throughs, and open doors to everyone from real estate agents to nosy neighbors. Having others view your home – oftentimes while you are not there – requires that you put personal reservations about privacy aside.

Although this paints a rather bleak portrait of what selling a home entails, the truth is that people buy and sell homes every day. They upgrade to new family homes in Kona suburbs and move to downtown condos with chic views – and are usually more than happy with the outcome.

One way to get past issues of trust and privacy is to put your home in the hands of a real estate agent you trust. Your agent works as an advocate for you and your house, making sure that everything proceeds safely and with a minimal hassle. And because your agent knows the Kohala real estate landscape, it’s easier to settle on a price and a staging set up that will get you faster results.

Diana Woods has been working in the Hawaii area for years, and knows exactly what it is that makes local homebuyers interested. To minimize your anxiety and sell a HI home quickly and easily, feel free to call our office today.

Kona and Kohala homes for sale are noted for their family-friendly communities and idyllic backdrop, but that doesn’t mean that every home is ideally placed. Before you purchase a home in any Hawaii city, it’s important to research what the rest of the neighborhood has to offer.

Schools

Schools are the number one consideration when it comes to choosing a good neighborhood in HI. If you have kids, the reasons are easy to spot: you want your children to have access to a good, safe education. However, even homeowners without kids need to keep this issue in mind, especially if you plan on selling the house some day. Top-rated schools will not only keep your property value high, but they’ll also serve as an appeal to potential homebuyers in the future.

Crime and Sex Offenders

Few people want to live where they feel unsafe or fear for their families. That’s why you should always check the crime rate and search for registered sex offenders in the area. Never take a neighborhood at face value; a place that looks charming during the day might have a high rate of break-ins, while a neighborhood that looks less savory might actually have a strict neighborhood watch program in place and several policeman living nearby.

Walkability/Livability

Suburbs in the region of Kona are generally good places for a slower pace of life, but the ability to walk to the market, the park, or to run simple errands might not be as high as what you can find in a more urban center. At the same time, Kona suburbs might be better for taking a scenic evening stroll. When determining where you want to live in Hawaii, keep in mind what is more important for your lifestyle: being near amenities, or being near other families with similar goals as you.

The same is true for things like construction zones, local garbage plants, train tracks, playgrounds, dogs, or industrial zones nearby. Make sure you take a walk through your potential neighborhood during the day and in the evening to see what types of noises, smells, and sights you will have to get used to.

The Neighbors

Nothing tells you more about a neighborhood in Kohala than the neighbors. Does everyone keep their homes and yards in good order? If a visually-appealing community is important to you, you might want to look around to make sure everyone else feels the same way. You might also want to investigate why. Is upkeep important to the neighbors, or is it held in place by strict homeowners’ association rules? Are you ready to make the same level of commitment?

Also, you’ll want to determine the types of people who live nearby. Is there a large percentage of young families? Teenagers? Professionals who are rarely at home? Although these things can and will change, they will tell you a lot about the overall neighborhood culture.

Neighbors also matter when it comes to the type and sizes of homes they have. Are there a large number of foreclosures? That could indicate a lowering neighborhood value. Are the other houses very different than yours in terms of value? (Note: Being surrounded in houses much higher in value than yours means that you may pay more in property taxes. Houses with a lower value means that you may end up having a difficult time selling in the future.)

Buying Your New Kona Home

Buying a home, whether it’s in the center of Kona or on the outskirts of Mauna Kea Resort, is a big undertaking. It’s important to look beyond the physical structure of your dream house to notice all that’s going on around you. After all, the place you call home is about more than four bedrooms and three baths; it’s about your way of life.

If you’re ready to learn more about purchasing a home in HI, contact Diana Woods today. We’ll match you with the perfect home—including neighborhood amenities.

Sight

When selling a Kohala home or preparing your Kona home for viewing, you should pay attention to both the big picture and the details of your house.

For a bigger picture viewpoint, try to see everything with fresh eyes. When you pull into the driveway, what overall impression does the house give you? Is it clean and well-cared for? Does it look like the sort of place a family would want to live?

Then, as you walk up to the front door, pay closer attention to the little things: the state of the flowerbeds, a cracked panel of siding, or an unsightly satellite dish at one corner of the house. These little things are often the easiest to fix in terms of time and money.

Do the same thing as you walk through each room of your house. Take a quick survey from the doorway, and then walk through to make note of smaller defects. Different homebuyers look at different things, so it’s best to ensure that even the littlest problems are attended to.

Sound

The sounds of an ideal Hawaii home are pleasing to the ear, and you should do your best to keep them that way. Avoid running any noisy appliances when you’re expecting potential homebuyers to stop by. Televisions, radios, and even kids playing outside can all contribute negatively to the experience. When possible, you should either opt for silence (to demonstrate the peacefulness of your home) or use light background music that won’t be offensive to anyone. If you live near the water or wilderness, you might also open a few key windows to let in the most natural sounds.

Smell

It’s long been held as a “rule” of real estate that you should bake cookies or light a vanilla-scented candle when you show your home. These traditional smells are ones that most people associate with happy memories, which can trigger better feelings about your HI home for sale.

While you don’t have to stick to traditional baking smells, the idea is a good one. However, if you use scents, choose ones that are inoffensive, are hypo-allergenic, and aren’t too obvious. You can also choose smells suited to particular rooms. Light and airy scents are well-suited to bathrooms, while the baking smells tend to do better in living rooms and kitchens.

Touch

In most cases, you don’t want people walking through your home to touch your personal possessions. However, the sense of touch can be important. Plush carpeting is welcoming in bedrooms and living spaces, while cool hardwood or tile makes a kitchen feel cleaner and more efficient. Crisp, clean appliances promise a treat for the fingertips even if the potential homebuyers don’t make actual physical contact.

For the sense of touch, it’s best to promise a great tactile experience, rather than actually provide one. Place soft furnishings next to clean architectural lines. Throw a cozy blanket over some leather furniture. Choose draperies that are either light and airy or heavy and warm, depending on the mood you want to set.

Taste

When you have an open house in Kona, keeping appetizer trays on hand can go a long way in making a good impression. Elegant sandwiches, tasty tarts, and other bite-sized treats cause people to linger and take a better stock of their surroundings. Food at a open house, while potentially messy, is also more likely to draw other real estate agents. At the end of the day, greater exposure – whether it’s potential buyers or real estate professionals other than your own Diana Woods – means a greater likelihood that your home will sell quickly and easily.

Selling a HI Home

A house is more likely to sell if it seems like a home. When you engage all the senses, you’re doing more than showcasing the physical features of your house – you’re demonstrating how comfortable and welcoming it is. And in today’s market, taking those few extra steps can make a huge difference in how quickly your Kona, Kohala, Mauna Kea Resort home sells.

What is an Eco-Friendly Home?

An eco-friendly home is any house that strives to reduce energy usage either during the building process or for average, everyday use. Green Home Building Standards have been established by the National Association of Homebuilders (NAHB), which strives to ensure that ecologically sound building practices meet structurally sound ones no matter where you live.

Some of the components of a “green” home include:

• Energy-efficient features, including appliances and windows with the Energy Star rating. This can also be accomplished by doing simple things like using more efficient lighting fixtures and light bulbs.

• Water-efficient features, including Energy Star ratings on toilets, showers, faucets, dishwashers, and washing machines. At a more advanced level, this can include water recirculation systems and on-site wastewater treatment systems.

• Resource-efficient features, which generally come from structural changes that have to do with house size and layout, window placement, heat conservation efforts, and even using fast-renewing resources (like bamboo) for the floor or other building materials.

• Quality air features, which provide good ventilation without introducing toxins into the air either inside or outside the home.

• Outdoor features, including landscaping that contributes to the local vegetation, and the use of permeable materials for driveways and walkway. Water waste should also be reduced wherever possible.

Purchasing a Green Home

One of the greatest things about eco-friendly homes in the Kona region is that most of the costs are figured in during the building process. This means that if you’re in the market to purchase a green home, you will only have to help maintain the work that’s already been done. While this can increase the initial price tag of your new HI home, chances are that it will save you large amounts of money as the years progress.

In an age where it’s becoming increasingly more important to give back to the environment, more and more homeowners in the Kona area are loHIing for ways to reduce their carbon footprint. It doesn’t matter whether you purchase a new home in Mauna Kea Resort or an older building with recent renovations in Kohala, Diana Woods can help you find a way to combine your love of the environment with the home of your dreams.

The truth is, there’s no reason why your Kona home has to be the size of a small country in order to appeal to homebuyers. Small spaces, while more of a challenge to decorate and stage, have quite a bit of potential for appealing to those looking for charm, coziness, and class. If you’re doing the staging for your home yourself, here are few important tips in making your small home look like it’s worth every penny.

1. Get rid of the stuff. In any home staging effort, you want to get rid of personalized items and all the miscellaneous knickknacks that find their way into your home – including paintings and even overly unique drapes. This is never more important than when you’re trying to make a small house look bigger in HI.

2. Go for neutral colors. Dark colors make rooms look smaller in size. By using light, airy colors, you’ll give the appearance of more light – and therefore, more space.

3. Offer storage options. Most people need to really “see” themselves in a Kona home before they buy it. If you find creative ways to set up storage (such as in hidden cupboards, in strategic locations behind the couch, or even in a great set of shelves), you’ll give the impression that the house is not only beautiful, but livable.

4. Go for high-end details. Many of today’s homebuyers are willing to overlook a smaller space as long as it still retains a high value. Things like crown molding, built-ins, great appliances, and hardwood floors can go a long way in adding to the charm factor.

5. Use bright, strategic lighting. As with choosing lighter colors for wall paint, the idea of using light to give the impression of space is a good one. This is especially true if you can use track or recessed lighting to streamline the space even more.

Remember, there is no such thing as a typical homebuyer. By neutralizing your space and offering the little luxuries that allow people to envision themselves in your home, you’re allowing them to look beyond square footage to see how your Kona house for sale will help them create a lifetime of memories.

First-Time Homebuyers in Kona, Kohala, Mauna Kea Resort: If you’re in the market for the first time, buying a home as an investment is a wonderful opportunity. Not only are there federal funding options available for first-time buyers, but the low average cost of homes right now means that you can get more Hawaii home for your dollar. This is especially true if you’re looking for a home to live in for a few years. By buying a house now, you can have a place to call home and the potential to sell it for profit five, ten, or even twenty years from now.

Kona Home Flipping: “Flipping” a home, or buying a house and fixing it up to increase the resale value, has been made popular by television shows and success stories that boast of tens of thousands of dollars virtually overnight. However, the process of fixing up a house is a much larger task than it at first appears. If you plan to flip a house as a way to earn a living, make sure you know exactly what the construction projects will entail and how you will finance your way through the process for the entire time it might take to resell your investment home.

When Buying HI Real Estate, Timing is Everything: As a financial decision, buying real estate is often best taken advantage of as a long-term investment. After all, it can be difficult even for professionals to predict the Kona real estate market. That’s why one of the best ways to turn a profit on a Hawaii home is to plan on living in the home or renting it out for upwards of 10 years at a time. It’s one of the best ways to guarantee an increase in your investment, and to enjoy yourself – and your family – while doing it.

The most important thing to remember before delving into HI real estate as a way to make money is that there is no quick and easy road to riches. The recent housing bubble burst is perfect evidence of this, and many people learned the hard way that buying a home as an investment, like any financial decision, takes time, planning, and a little homework.

While most homeowners should make changes to their houses that suit their lifestyle rather than the eventual sale price of their home five, ten, or even twenty years down the road, there are a few things to keep in mind. After all, if you will someday be selling your Kona house, you want to be sure you’re maximizing your profit.

• Repair all the little things – now. Most of the time, homeowners are willing to overlook the little idiosyncrasies like a broken step on the porch or chipping paint on the kitchen cabinets while they live in their house. These small repair needs are a bit like a knee that acts up in the rain or a car that always requires you to turn the key three times to the right before starting; they just become part of the everyday backdrop of your life. However, for someone buying a home in Kona, Kohala or considering real estate in Mauna Kea Resort, these things can become glaring problems. By fixing issues as they arise (rather than waiting until you’re ready to sell your HI home), you not only avoid making major repairs all at once, but you actually get to enjoy the repairs while you live there.
• Know your neighborhood. If you live in one of Kona’s family-friendly neighborhoods, chances are things like well-maintained yards, large family rooms, and spacious kitchens will be worth more in the long run. If you live in a Kohala condo, you might find that built-in bookshelves and jacuzzi bathtubs are more appropriate. While you don’t have to tailor every change to your eventual sales audience, you can choose to make the types of changes that will translate into the highest returns.
• Don’t ignore the less visible changes. Almost all of the houses for sale in Kona go through cosmetic changes before they hit the market. Fresh paint, new kitchen appliances, and good landscaping are fairly common. Less common are things like a new roof, updated plumbing, or even a newly-installed automatic sprinkler system. However, these things show up in a home inspection evaluation, and when you put your trust in a HI real estate agent like Agent1, these types of changes will always get the focus and attention they deserve.

The most important thing you can do to your Kona home is enjoy the time you’re going to spend there. However, by keeping its eventual sale at the back of your mind, you’ll be able to get the most out of your life – and your investment.
]]> http://www.bigislandhawaiiluxury.com/ways-to-increase-your-homes-value/feed/ 0 http://www.bigislandhawaiiluxury.com/kona-kohala-2009-residential-sales-january-to-april/ http://www.bigislandhawaiiluxury.com/kona-kohala-2009-residential-sales-january-to-april/#comments Thu, 28 May 2009 02:15:56 +0000 dianawoods http://www.bigislandhawaiiluxury.com/?p=22 Today I took a look at sold statistics in the North Kona and South Kohala areas.   I’m hearing economists forecast the end of the recession by the end of the year. 

I want to watch the sales statistics for upper end and luxury residential starting from January 2009 to see when the data will identify the market “bottom.”  Some think we are there, and others are still skeptical.  Let’s start with single family and condominium homes in the $1,000,000+ range:

$1,000,000+	Median Sales Price	Units Sold
January	$1,540,000	3
February	$1,000,000	4
March	$1,400,000	7
April	$4,900,000	1

Here is the sales data for Kona Kohala area homes during the same period in the $500,000 to $1,000,000 range:

$500K-$999K	Median Sales Price	Units Sold
January	$600,000	15
February	$644,500	14
March	$540,000	5
April	$600,000	5

I will share future sales data here and together we can discuss the emerging trend.  While “trend spotting” is entertaining and hopefully helpful, my number one concern continues to be interest rates.  Buying with the best interest rate is far more important than buying at the perceived bottom of the market regardless of rate.

Assuming today’s rates are a good deal, what are Big Island Hawaii upper end and luxury neighborhoods to watch? 

Over $1,000,000, at Mauna Lani Resort, The Point ocean view condos remain popular.  The oceanfront location can take the edge off the 1980s interiors.

In Hualalai Resort just north of the airport, there are more luxury homes on the market now that at any time in the resort’s history.  Consequently, there is a nice selection of beautiful single family home under $10,000,000.

Not on the “deal” list but definitely worth a look if you prefer the most prestigious address on the Big Island: The Bluffs at Mauna Kea Resort #15.  This is only the second time a home in this neighborhood has been marketed on the open market.

Under $1,000,000 the neighborhoods to watch are the Kumulani condos at Mauna Kea Resort.  There are still a couple of good developer buys.

At Ka Milo in Mauna Lani, the developer is very motivated and is offering a duplex style single story unit with a two car garage around $600,000.

Hali’i Kai at Waikoloa Beach Resort remains one of my favorite entry level resort neighborhoods.  Its oceanfront pool club is outstanding.

These neighborhoods feature beautiful tennis and golf facilities, as well as access to the best beaches on the island.  For more details or photos, please ask.

However, as any responsible real estate agent will tell you, buying a fixer-upper can be a big challenge. Excessive or hidden damage in a home can be both dangerous and costly. Before you make the plunge, make sure you follow a few important fixer-upper guidelines.

1. Always get an inspection. Nothing will give you a better idea of what kind of repairs you’ll come across than a thorough home inspection from a trusted source. Don’t take on more damage than you, your contractor, and your budget can handle.

2. Pay attention to the layout and structural foundation of the house. If you’ve always dreamed of a large kitchen, make sure your potential new home can be adapted in terms of wiring, plumbing, and layout. Sometimes, the skeletal structure of a house prevents certain types of cosmetic changes.

3. Location matters. It doesn’t matter if you’re looking for a single family house in Kona or a condo in Kohala; a home’s value is only as high as the neighborhood in which it’s located. A rundown building in a nice neighborhood has the greatest potential to bring an enormous resale price.

4. Know the difference between “big fixes” and “small fixes.” Things like drywall, painting, floor refinishing, landscaping, and hardware are easy to do yourself. Things like plumbing, electrical work, windows, and roofs can be more expensive and difficult. Stick to changes you can make for certain based on your skill level and budget.

When buying a home in Kona or looking at Kohala real estate options, a fixer-upper can be one of the best ways to get the home of your dreams for a low overall cost. Just make sure you enter into the transaction with your eyes open, with flexibility in mind, and with Diana Woods at your side.