Honolulu, HI

On June 30th 2009, Iolani School announced that it purchase a large parcel of leasehold land owned by Lum Yip Kee Ltd. and Lum Chang Tai Inc. The price - $23 million dollars.

The highlighted area below shows the property purchased by Iolani School. Map courtesy of Google Maps.

The land consists of approxmately 21 properties situated on a block of land in a prime area of Honolulu. It's bordered by Date and Laau Streets, near the Ala Wai Golf Course and Kapiolani Blvd. Nearby neighborhoods include Waikiki, Kaimuki and Kapahulu.

The purchase includes a private road (Laau Street), four vacant lots, two individually-owned apartment buildings and nine coop buildings - Iolani Banyan, Lani Home, Laau Gardens, Iolani Gardens, Princess Anne Apartments, Canal House, Hale Laau, Hale Laau II, and Diana Apartments.

The lessors are selling the property in fee simple and are not offering the fee to current lessees. Many of the lessees are owner occupants.

Leases expire in early December, 2012. That leaves three years and several months for current lessees to use their properties or sell them. Iolani School has indicated that it will convert the area to other uses in a gradual manner. This may mean that occupants will have a chance to extend their leases under the new lessor.

Obviously, many lessees were hoping to see the fee offered on the units they purchased. It's not clear whether the purchase complies with section 514-C2 of Hawaii State Law.

§514C-2 Right of first refusal. When the leased fee interest in land under a condominium project or cooperative project or any part thereof is to be sold to any party other than the association of owners or the cooperative housing corporation, the seller shall first provide the board of directors of the association of owners or the cooperative housing corporation with written notice delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to any two of the president, vice-president, or managing agent (if any), of its intent to sell that interest, together with a complete and correct copy of the purchaser's written offer, which offer shall contain the full and complete terms thereof. The association of owners or cooperative housing corporation shall have a right of first refusal to purchase that leased fee interest for the same price as is contained in the written purchase offer. [L 1988, c 298, pt of §1; am L 2008, c 28, §33]

There may be hope yet for lessees on Date and Laau Streets. I imagine some of the lessees are going to start making some noise about getting their first right of refusal to buy these properties. This could be in interesting show! It's a prime area for affordable living in town, close to the beaches and Waikiki. In recent years, lease prices of properties in the area have been in the $20,000 - $50,000 range, making them good investments for owner occupants as well as investors.

Aloha, Mike Bates

Oahu realtor

June 30th, 2009 categories: Buying Honolulu Real Estate, Honolulu Real Estate 101

This Wall Street Journal article gives you a number of ways to help your family to get into Honolulu real estate.

GO TO HONOLULUREALESTATEVIEWS.COM

All Loan Officers and Real Estate Agents in Hawaii were given a memo (it was released on May 19th) that Hawaii VA Loan Appraisals are taking longer now due to . The memo from the Head of VA Home Loans here on Oahu made sure to stress that on Oahu (Honolulu County) the VA Home Loan Appraisal are taking UP TO Five...yes, 5 weeks to complete.

With Hawaii VA Home Loan Appraisals in Honolulu Country taking much longer than usual (based on the amount of home loans in progress) it is definitely placing a burden on all involved in the Real Estate Home Buying Process for the Veteran:

• Military Personnel who are transferring to Hawaii obviously stay in a hotel until they acquire housing. An appraisal taking up to five weeks can delay the transaction from 30 days to 60 days or more.
• Veterans who are utilizing their VA Home Loan Guaranty get discouraged when they see the rest of the transaction is moving swiftly ....but being held up just for the appraisal.
• The loan officer, real estate agent, escrow are put on hold waiting for an appraisal. The rest of the 'team' who are working together to get the transaction done are stuck in limbo.

You see, our Hawaii Real Estate Transaction Process is quite different than a lot of other states and it also includes the buyer and seller signing all loan and escrow documents at different times. We all don't sit down at the same time to sign documents and we do not hand over keys right then and there.

After signing all loan and escrow documents we still have to wait for up to 3 days for the loan company to fund the monies to escrow. AFTER escrow receives the monies then, and only then, can escrow file the conveyance documents with the Bureau of Conveyances which recorded the morning after.

Now, we have another damper on our Hawaii Real Estate transactions. Since our Governor 'had to balance our budget' she ordered that State Offices will close three Fridays of every month (no pay but better than 10000 jobs lost).

The Bureau of Conveyances says it's now TWO days for processing documents for recordation.

With all the delays for appraisals and recording documents I'm starting to believe that it's a test to show the seriousness on everyones part.

The buyer who is really wanting to purchase property, the seller who needs to sell to relocate, the real estate industry professionals who are REALLY thinking in their clients best interest.

Talk about cleaning house.

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Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com

June 25th, 2009 categories: Honolulu House For Sale, Honolulu Real Estate 101

This is my next post on getting ready to sell your home.
8. Check out your neighbor’s curb appeal and attempt to do something to clean it up. Neighbors, neighbors, neighbors you either love them or don’t. A major part of selling your home is not only the condition of your home, but also the look and feel of your neighbors. This can be a very, very touchy subject, but is it has to be discussed because the condition of your neighbors home can make or lose you money. Here is what to do.

GO TO HONOLULUREALESTATVIEWS.COM

Hawaii Home Buyers and Sellers | Etiquette for Open Houses

Our Open Houses on Oahu (Honolulu County) are still a great way to preview a property. Maybe your Realtor® is unable to attend with you (the Home Buyer) due to previous appointments or holding an Open House themselves. It's also a great way for the neighbor to do a ‘quiet observation' of the agent holding the Open House to see if they might possibly ‘hire' that agent and brokerage firm in the sale of their home.

It's all relevant when it comes to Hawaii Open Houses and Honolulu Real Estate Tips.

1. Make sure you've already been prequalified with a lender so you're looking in the correct price range. Be realistic in your home search and price range lest you waste your time. If you have a Realtor® then you have already been instructed to go through that process.
2. Please don't be rude to the agent holding the Open House. You are there as a guest in someone's home and will be courteous and polite to the one holding the Open House.
3. Please remove your shoes unless otherwise instructed. In Hawaii, we take off our shoes not matter whose home it is. Open Houses are no different. Again, you are a guest in the seller's home and they most likely have already prepared the home with carpet cleaning and so forth. Wear slip on/off shoes/sandals.
4. Please hold on to your children. Letting your children run rampant around a beautiful home is not how you show respect to the owner of the home and being a good example as a guest. The home is not a playground for all of you to pass the time on a Sunday.
5. Please sign in the guest book. If you have a Realtor® make sure you have your agent's business card on hand (get a bunch from your agent) to give to the agent holding the Open House. It will also help the Open House Realtor® follow up with your Realtor®. No matter what, you all are a guest in the home so please do the agent a courtesy and sign in.
6. Make notes of your own observations. This will help you with your home search regardless if you are just going to Open Houses or showing appointments with your Realtor®. A list of wants and needs before you start your home search is another good tip.
7. If you walk into an Open House and REALLY feel that this is the right home for you. Call your Realtor® immediately and put in that offer! The inventory on Oahu is going down and if you try to be a killer negotiator or sit on the fence that home will be gone!
8. Remember, the seller's agent who is holding the Open House has the Seller's best interests at heart. A lot of home buyer's "believe" that they are going to "get a better deal" if they deal with the seller's agent directly. The truth is that you are best represented by having your own agent (buyer's representative or buyer's agent) who know the real estate contract and laws. Your OWN agent is your most valuable negotiating tool and bargaining power for your home buying process.
9. A company sign for an Open House means they have a listing contract in place. It means they have a legal contract in place and you are not going to negotiate terms between seller and brokerage firm to get a better deal.
10. Please don't touch the items in the home. Again, you are a guest in the seller's home and you are there to preview the property. You are NOT there to try and figure out what the seller does for a living and their personal history nor allowed to touch things that don't belong to you.

These may seem like common sense tips for most although many may benefit from one or more of these tips.

Please be respectful and courteous while attending an Open House.

YOU ARE A GUEST.

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Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com