James Pycha

The chart above shows a clear trend for the reduction in the number of closed sales on Kauai. As demand continues to decline and the supply increases, the resulting downward price adjustment must soon follow. It has become a battle of wills but the Sellers must soon concede to the inevitable. However, in order for cycles to continue their dynamic swings (up and down) the current downward trend is only a preamble for the recovery. Just dont ask me when !!

REMAX KAUAI Property Search

Distressed Property Hawaii Law MUST be Amended to Exclude Realtors. (edit/delete)

The stated purpose of the new law is to protect the property owners facing foreclosures, liens, or encumbrances from persons who would prey on them.

This act addresses possible misrepresentations by such persons who would offer assistance to these owners and requires them to fully describe their services in a written contract. It gives the property owner the right to cancel at any time before a "distressed property consultant" has performed all services called for in a contract.

The problem arises in the definitions section: "Distressed property consultant means any person who performs or makes any solicitation, representation, or offer to perform any of the following relating to a distressed property: ... Stop or postpone the foreclosure sale or loss of any distressed property due to the nonpayment of any loan that is secured by the distressed property..."

Previously, these were duties real estate professionals performed when they represent a seller in a short sale. Unfortunately real estate professionals are not specifically excluded in this law. However, lenders, attorneys and insurance companies are all exempt from the law. Why not real estate agents?

Short sales are a challenge for agents under the best of circumstances. They take much more time and their commissions are usually reduced by the lenders as a condition of approving the short sale transaction.

Agents work on short sales as a service to their clients. Under the new law, real estate professionals acting as "Distressed property consultants" have their compensation capped at two most recent monthly mortgage installments of principal and interest due on the loan first secured by the distressed property or the most recent annual real property tax... which ever is less".

This is very little incentive for a real estate professional to list, market, find a buyer and negotiate with the lender to help the distressed seller avoid foreclosure, especially when that compensation is split with a co-operating broker representing a buyer.

Ultimately, I believe the consumer will be harmed greatly by this law. If real estate agents are not involved in helping distressed sellers sell their property through the short sale process and marketing it on the Multiple Listing Service, the lenders will have no choice but to foreclose.

The law must be amended to exclude licensed real estate professionals from the definition of "distressed property consultant" when they are performing services on behalf of a buyer or seller.

Selecting the right real estate agent to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider a professional's background, personality and responsiveness.

Here are some tips to help you choose and work with your real estate agent.

How to choose a real estate agent

1. When it comes to choosing a real estate agent, consumers who do their homework can save thousands of dollars and experience a smooth financial and physical transition. So don't waste time and resources - decide what's most important to you, and then find a professional who specializes in that area. Are you buying or selling a loft? A condo? A rural property? Raw land? An investment property? Perhaps cost is your main concern. Or timing. Whatever you decide, a RE/MAX Associate can help you.
2. Ask friends and family members for referrals. Someone you know and trust to help you meet your real estate goals.
3. If you've already determined where you'd like to live, drive through neighborhoods in the area and survey them for Realtor yard signs. Seeing the same name pop up on signs time after time may indicate that the agent is a specialist in the area. If you're thinking about selling, monitor the signs in your own neighborhood.
4. Pay attention to credentials. This will help you determine areas of expertise. You may be interested in these designations: ABR (Accredited Buyer Representative), CLHMS (Certified Luxury Home Marketing Specialist), CRP (Certified Relocation Professional), CRS (Certified Residential Specialist) and SRES (Seniors Real Estate Specialist). There are dozens of designations pursued for continuing education, so identify one or more that fit your needs.

What to ask in the interview

1. If selling, ask the real estate agent how he or she would establish a price. Request a Comparative Market Analysis, also called a CMA, which shows the market value of similar homes in the area that are for sale or have recently sold.
2. If selling, ask the real estate agent how he or she would market your property. Understand that some agents may prefer to first tour your property and then put together a comprehensive customized marketing plan to present at a later meeting. But if he or she can't suggest a single strategy when asked, you might consider interviewing other candidates..
3. Ask the real estate agent how often you should expect to hear from him or her. Know how and when you will communicate to avoid unrealistic expectations. Pay attention to office hours and whether you'll be invited to stay in touch via a cell phone or e-mail.
4. Ask how long the real estate agent has been licensed and how many buyers and sellers he or she has helped. While time is not the most important factor, it may demonstrate experience.
5. Ask about designations. Interest in continuing education is a strong indicator of motivation and professionalism.
6. Pay attention to the agent's listening skills. Does he or she cut you off before you've finished a sentence? There's nothing worse than looking at houses you have no interest in because the real estate agent has not listened carefully to your needs, or having your home on the market too long because it's priced incorrectly and the wrong buyers are being targeted.
7. Ask the real estate agent what his or her fee structure is. Does he or she require a percentage of the sales price or work for a flat fee? Will the agent be paid another way?
8. If you are unsatisfied with a prospect's plans or personality, thank him or her for taking the time to meet with you and repeat the process with another real estate agent. It can be time-consuming, but it's worthwhile.
   
   Once you've found the right real estate agent to represent you, hold up your end of the relationship. There are simple things you can do to help your real estate agent get you the best deal.

How to work with your real estate agent

1. If you are selling, create an information sheet that lists your home's features and best qualities, especially those you know best that others might overlook. Give this to your real estate agent, who may be able to use the information in marketing materials or when talking with potential buyers.
2. When selling, talk to the real estate agent about cosmetic improvements. Your home may need fresh paint or new carpet. (Make sure you choose neutral colors.)
3. If selling, keep it clean. Eliminate cobwebs and dust. Keep the bathroom counters and mirrors wiped down. Vacuum and sweep daily during the selling process.
4. If buying, be clear about what you want. Make a list of your priorities numbered 1 through 10 and give it to your real estate agent. You can always revise the list, but give your real estate agent something concrete so that he or she can research available listings more efficiently.

Food for thought

1. Office environment can say a lot about a businessperson. Is it clean and organized? Do the office hours make it easily accessible? Are staff members pleasant and helpful?
2. Your real estate agent is an authority you hire to help you make the right decisions, but you have the final word.
3. Hiring a Realtor will give you the best advantage. Although many practitioners work part time, RE/MAX Associates are industry professionals who can provide their complete attention and expertise. This gives you an enormous advantage.
4. Your residence is likely to be the biggest single investment you'll ever make. Buy and sell wisely.
5. Remember that home values fluctuate with the economy.

Kauaʻi (in standard Hawaiian pronounced [kauˈaʔi]; in Kauaʻi-Niʻihau dialect, [tauˈaʔi]; usually spelled Kauai outside the Hawaiian Islands and pronounced /ˈkaʊɑɪ/ or /kaʊˈɑɪ/^[1]) is the oldest of the main Hawaiian Islands. With an area of 552.3 square miles (1,430.5 km²), it is the fourth largest of the main islands in the Hawaiian archipelago and the 21st largest island in the United States.^[2] Known also as the "Garden Isle", Kauaʻi lies 105 miles (170 kilometers) across the Kauaʻi Channel, northwest of Oʻahu. Of volcanic origin, the highest peak on this mountainous island is Kawaikini at 5,243 feet (1,598 m).^[3] The second highest peak is Mount Waiʻaleʻale near the center of the island, 5,148 feet (1,569 m) above sea level. One of the wettest spots on Earth, with an annual average rainfall of 460 inches (11,700 mm), is located on the east side of Mount Waiʻaleʻale. The high annual rainfall has eroded deep valleys in the central mountains, carving out canyons with many scenic waterfalls.

There is no known meaning behind the name of Kauaʻi. Native Hawaiian tradition indicates the name's origin in the legend of Hawaiʻiloa - the Polynesian navigator attributed with discovery of the Hawaiian Islands. The story relates how he named the island of Kauaʻi after a favorite son; therefore a possible translation of Kauaʻi is "place around the neck", meaning how a father would carry a favorite child. Another possible translation is "food season"^[4].

The United States Census Bureau defines Kauaʻi as Census Tracts 401 through 409 of Kauaʻi County, Hawaiʻi, which is all of the county except for the islands of Kaʻula, Lehua, and Niʻihau. The 2000 census population of Kauaʻi (the island) was 58,303. ^[5]