Randy L. Prothero - Hawaii REALTOR®

There are signs the real estate market is not all bad.

The newspaper is not giving you that message. It almost appears the new media is determined influence the real estate market rather than report on it.

In the last few weeks I am seeing signs of things picking up in many of the communities I service. I am getting more showings on my listings and have several buyers who were waiting in the wings now actively looking for a new home.

Last week I submitted offers on two different condos for a buyer. In both cases we were in a multiple offer situation. It has been a long time since I saw the same client have that happen twice.

One of my buyers sent me a list of six properties they were interested in. Three of them went into escrow last week. That is definitely a sign of things picking up.

With interest rates at these low levels many buyers who were sitting in the wings are now actively looking for a new home. Some sellers are recognizing a window of opportunity and are prepping their homes to get them on the market. If you are not buying or selling a home you may be refinancing one. I am definitely seeing an increase in activity since the first of the year.

Over the next few months a large number of military troops will be returning from deployment in Iraq and Afghanistan. They will increase the demand for housing in our area. I will not predict what the median price of a home will be a year from now or if you home will gain or lose value in the next 3 months. I will predict one thing though. The news media will be the last to report when something positive happens in our real estate market.

I regularly get approached by friends, family members and clients who are thinking about becoming a real estate agent.

After all, I make it look so easy and they see my face all over the place. I must be making big bucks and not having to work very hard for it; right? Isn't that the impression we give others when we are successful at we do?

Professionals have a habit of making the process look easy. We shield our clients from most of the stress and strain we go through to make it all come together. We shove papers in front of our sellers a few times and say sign. A few open houses and an inspection or two and they get their check. How hard could that be? They are sure they could do it.

Buyers think we drive around, show a few houses and then in a month or two deliver them the keys.

If we are good at what we do, we make it look easy to the outside world. The truth is being a REALTOR® is not an easy job. It requires a lot of training, a lot of hard work and dedication, a lot of expenses and all with no guarantee of getting a pay check.

Ed Hatch is one of my favorite CRS instructors. He claims to do what we do, you have to be a little crazy. Think about it:

• We go to school to qualify for a license.
• We pay a few thousand dollars for the license and the various REALTOR® associations.
• Pay for E&O Insurance.
• Purchase business cards.
• Pay for the needed training to learn how to do the business.
• Get tax licenses, etc.
• Pay for marketing (which isn't cheap).
• Work floor duty.
• Sit open houses.

All of that before we even get our first client. Once we get our first client we are still looking at a minimum of a month or two before the first pay check comes in. Are you starting to agree with Ed? You have to be a bit crazy to do what we do.

So let's say I haven't scared you and you've decided to be one of us. You will be joining one of the most noble of all professions: A professional REALTOR®. Where should you start?

I just read probably the best book I have seen for someone thinking of entering the real estate profession or is new to the business. Heck, I have been fairly successful in real estate and I still enjoyed the book and got a few great ideas from it. The book is: Real Estate the Rome Way by Margaret Rome.

So if I haven't scared you off from joining the world of real estate, you should seriously consider reading Margaret's book. You will get guidance to help ensure a good start.

Good Luck and Good Reading!

I was thinking about an experience I had on Christmas a couple years ago.

I got a call from an agent who wanted to show one of my listings on Christmas. They not only wanted to show it that day they wanted to show it on short notice. The same year that happened, I read a similar account from another agent on Active Rain.

What would you do? I told them I could not make the appointment for them, but could schedule them for another day. It is Christmas and my clients have guests over. The seller's asked for no showings for the couple of days while they had guests, which I posted in the listing under showing instructions.

Not accepting my response he pressed me further, all but demanding I call me clients and interrupt their holiday gathering. I declined to make the phone call, which made him irritated. I said it is Christmas and I will not disturb them. After making some unpleasant remarks about professionalism and religion he hung up. I never heard of the agent before that day and have never seen or heard of him since. I am guessing may not still be in the business.

I wonder how many listing agents would have actually called their clients.

As we get to the end of another year a few things will change. One of them is the Basic Housing Allowance for our active duty troops stationed in Honolulu County (Island of Oahu). The rates had a slight decrease from the 2008 levels. Those who are already stationed here will be grandfathered in at the previous rate. BAH in Honolulu County is much higher than most parts of the country. Coupled with VA Mortgages, buying a home is a viable option for our troops in Hawaii.

2009 Military Housing Allowance Monthly BAH (Basic Allowance for Housing) for Honolulu County.

The VA mortgage cap for 100% financing in Honolulu County is: $783,750. (Larger amounts will require some down payment.)

• E= enlisted
• W= warrant officers
• O-1E= officers with enlisted experience
• O-1= commissioned officers with no prior enlisted experience

If you are active duty or a former member of the military and interested in learning how to buy a home utilizing your VA benefits on Oahu; I would be pleased to help you get started.

If you are civilian and wondering what programs are available for you to buy your first home, please feel free to contact me.

My services are normally free to buyers.

One thing that stands out about a real estate professional is their ability to keep their cool under pressure. The process of buying or selling real estate can be a very stressful process. Buyers are sellers in many cases are dealing with the most expensive thing in their life. Rarely does a real estate transaction happen with a curve ball or two. When this happens we separate the professionals from the amateurs.

The professionals are those who see these are challenges or just part of the process. The amateurs are stressed out, acting badly or just shutting down. As the real estate markets cooled down the chances of a transaction having complications has increased tremendously.

The lenders have tightened their requirements. Buyers are looking for bigger and better deals and everyone is scrutinizing every document more carefully than ever before. In many areas new lending and consumer protection laws have been added to further complicate the process. To throw added stress into the mix there are real estate agents and loan officers who have seen a drop in business, many have taken on other jobs and are doing this part time; many are pushing much too hard to try and get that next commission.

In the last year I have seen:

1. Real estate agents selling their own properties and breaking rule after rule.
2. Sellers hiding defects in their properties.
3. Buyer's agents pushing clients into bad situations, just to close the deal.
4. Buyers trying to renegotiate the contract after already in escrow.
5. Lenders changing the requirements in the middle of the transaction.
6. Tempers flying from all sides when a transaction hits a speed bump.
7. Loan officers giving bogus loan approval letters to get it in escrow, and then trying to move the buyer to another type of loan or try to get the seller to give additional concessions.

While others are freaking out, you will be able to spot the true professionals. They will be keeping their cool, playing by the rules and getting the job done.