Yvonne Jaramillo Ahearn (R) Oahu Luxury Homes -Relocation -Beachfront Homes

BEACHSIDE, KAILUA NEIGHBORHOOD
LUXURY & BEACHFRONT HOME FOR SALE IN KAILUA, OAHU

9/28/2009 [2009 SALES DATA] [PAST SALES DATA]

ABOUT BEACHSIDE, KAILUA, OAHU The Beachside Neighborhood in Kailua is one of Kailua's and Oahu's most prolific luxury home and beachfront home neighborhoods. All of the homes in the Beachside area of Kailua are located beachfront or within a short walking distance to the beach. Many homes, even some of those with a busy street address like Kalaheo Avenue, are down quiet streets and off private lanes. There are several mini-neighborhoods and HOA's, in these charming beachside lanes, with amenities not usually seen in Kailua, like underground utilitites, and most having a private beach access path for residents. There are also several public beach access points in the Beachside Neighborhood in Kailua. Prices in the Beachside Neighborhood of Kailua can start in low 7 figures, usually around $1.0 for fixers or tear downs on Kalaheo Ave. and range to possibly, $9-10 million, (and double that for larger sized parcels and luxury homes and estates that could be further subdivided to still large lots). These super-deluxe Kailua luxury homes can be sprawling Balinese or plantation-style compounds, while the lesser expensive homes may be shabby beach cottages and anything in-between. Lots vary in size as well, usually, from around 10,000 square feet to over an acre, though there are a few smaller lots resulting from property CPRs. Zoning in this area is typically R-10, meaning one single-family residence per 10,000 sq ft. There are both homes and a few vacant lots available. Older homes, unless of historical significance tend to get torn down and replaced in this area.

The Beachside Neighborhood of Kailua, where some of the best luxury homes on Oahu, is located in the perfect location, along the 3 miles of white sandy beaches of Kailua Bay (on the makai side) bounded by and including the even-numbered side of North Kalaheo Drive (but not including all of N. Kalaheo). To the Northwest, it is bounded by the Kaiwanui Canal to the ocean, and to the Southeast by Kailua Road and the Kawailoa neighborhood (Kailua Beach Park). The Beachside Neighborhood includes the prestigious Castle Point area, with incredible luxury homes and estates, an area once owned by Harold HK Castle. Also, the coveted subdivision of Kainalu Park, with some luxury estates and some more modest homes, and small associated areas and associations such as Dune Circle, L'Orange, etc. Public schools are Kailua & Kainalu Elementary, Kailua Middle School, and Kailua and Kalaheo HS, depending upon location. Private school, St. Anthony, is within walking distance for most areas and goes PS-8th. Grocery and restaurants all within a mile from most locations.

PAST SALES DATA FOR BEACHSIDE NEIGHBORHOOD IN KAILUA

This year, with only one quarter left in 2009, the number of sales in the Beachside Neighborhood of Kailua is already down significantly. As of the end of September 2009 there have only been 10 sales, with the median price at $2,195,000 and the average price at $3,180,500. The lowest sale so far in Beachside, for 2009, at a jaw droppingly low price of $780,000 was for a tear down home on an 11,000 sq ft lot, right on North Kalaheo Ave. This went under contract at the end of 2008, and closed in Q1 2009, when the Kailua real estate market was looking its most dismal. I don't think anyone expects to see more deals like this.
BEACHSIDE HOMES SOLD IN 2009, THROUGH Q3 LUXURY HOMES IN KAILUA OAHU 2009 STATS THROUGH Q3 Median Price: $2,275,000 Average Sale Price: $3,180,500 Average Days on the Market: 181		Right now (end Q3 2009), there are 23 homes on the market. Over half of these are on estate sized lots (i.e. around 1/3 acre or more). The former Castle Estate, now listed for $15M, is on 1.5 acres at Castle Point, with three homes, but in the process of being divided into three single-family lots. Another 2/3 acre lot with a compound of two new residences on South Kalaheo, near Kailua Beach Park, is listed for $21,000,000. The home at Castle Point, used by President Obama for his vacation last year, is also for sale. Many of the homes currently for sale are newly renovated/developed properties, resulting from speculation in the boom years of 2004-2006 and the division of some larger lots. Some of these are now lender/investor owned, due to the market downturn and inability to build/sell. As you can see, average days on the market has gone up tremendously, more than doubling. May be time to see some major price reductions for some of these. If you want more specifics on what is currently on the market, please contact me directly at 808-721-8088. I didn't want to post all of the sales data here, because prices and availability may change frequently.

Looking to buy or sell a luxury or beachfront home, or a relaxed beach cottage or retreat in the Beachside Area of Kailua, Oahu, Hawaii? Or would you like help with luxury homes on Oahu in other areas of Oahu? I can help - I have specialized training in working with buyers of upscale homes and have 20 years experience in counseling and advising senior business executives and business owners, as well as handling multi-million dollar business transactions. I make it a point to stay up to date on market statistics and trend and track the relevant data. My membership in the Insitute for Luxury Home Marketing includes global networking and special resources for the luxury home market. Proud to be a full-service REALTOR-Broker and licensed transactional attorney, I help my clients get the best price in the shortest time, with the most information and the least hassle.

Yesterday, at Broker's Open House in Kailua, Oahu, I had the opportunity to view an exquisite beachfront home at Castle Point. Interestingly, it also happened to be part of the group of homes that was used by President Obama and his family for their December 2008 vacation in Kailua.

Kailua is a laid-back beach town, about 14 miles from downtown Honolulu. This Kailua Beachside Neighborhood property, formerly part of the Harold KL Castle Estate, sits on almost an acre of land in a prestigious gated community known as Castle Point. Castle Point is at the end of Kailuana Place through the also exquisite Kainalu Park Area in Kailua. The back of this Kailua estate for sale fronts the tranquil aquamarine waters of Kailua Bay and one of the best white sand beaches in the US, if not the world. Recreational activities enjoyed on Kailua Beach area include windsurfing, kitesurfing, stand-up paddling, kayaking, swimming, and of course, suntanning. You may even frequently spot a honu or two! The front of this Beachside Neighborhood home for sale is on a quiet, wide, dead-end street, that fronts the Kaiwanui Canal, leading to the ocean.

The wood-frame Tropical Plantation style luxury home, built in 2006, is almost 5,000 sq feet under roof, with almost 2,000 square feet of open lanai, and has 5 bedrooms and 5 1/2 baths. The entry to the home is gated and features a spacious and private front courtyard area with tropical landscape, a pool, waterfall and whirlpool. The open floor plan of this Kailua home features many rooms opening directly into the spectacular courtyard, maximizing the flow of the cool tradewinds from the ocean.

The architectural detail and finish work, including stained glass, stonework, and intricately carved wood, at this Beachside Neighborhood home are impressive, yet not pretentious. This fine home is still suitable to the relaxed beach lifestyle of Kailua. This home is listed at $8.9 Million. Qualified buyers, please call me for an appointment or for more information on this property. 808-721-8088.

Back of Beachfront, Beachside Neighborhood Kailua home, looking from Kailua Beach. 

This Castle Point home features a large Chefs kitchen with top of the line stainless appliances.

An Expansive Living/ Dining Room Area opens to Interior Courtyard Area in this fine Kailua Luxury Home.

Master Bath w/ Shower, Soaking Tub, Double Vanities, and a Multi-Million Dollar View.

Media Room and View Down Hallway With Bedrooms, Laundry, Etc. in This Comfortable Kailua Luxury Home.

Front Courtyard and Beautifully Landscaped, Private Pool Area.

Gorgeous Lanai Area in Front Courtyard

Large Lava Rock Pool Area with Waterfall in Front Courtyard.

Back Yard with Frontage Directly on Kailua Beach & Bay - Miles of White Sandy Beaches!

Listing courtesy of Joel Cavasso, C21 Kailua Beach Realty. Photographs used with permission.

You've decided to buy a home in Hawaii and maybe this is your first home purchase, or at least first time buying a home on Oahu, so you are unfamiliar with the process. What can you expect? What steps will occur? If you work with me, the buying a home in Hawaii process will go something like this:

1. Contact Me: If you are thinking about buying a home in Hawaii, first contact me. We can talk by phone or email and then, follow up emails by phone and/or in person. Before we talk - (A) Think about the basics of what you are looking for - how many bedrooms, square footage, etc. to narrow down your space and aesthetic requirements (B) consider your lifestyle, favorite activities, your tolerance for commute, and other considerations, such a schools, to narrow down your location requirements, (C) have a general idea of what you are qualified for and willing to spend on a home. Just a basic idea is neccessary at this point, to give me an idea of what is important to you in a home and the areas of the island and properties that might work for you. If you are like most buyers, A, B, and C may all change slightly during the actual "looking at homes" process.

2. Receive Listings Via Email: Based on your general requirements, I can set up one or more "Homes for Sale on Oahu" searches via the Hawaii Association of Realtors MLS (Mulitple Listing Service). Unlike in some other states, such as New York, there is one centralized MLS on Oahu and all REALTORS on the island have access to the same properties via the MLS. When you are buying a home in Hawaii, you can receive your property listings via email or on a special website portal set of specially for you. If you do not have email, I can make other arrangements. At the website, you may "Reject" properties, or mark them as "Favorites" or "Possibilities." You may also leave other comments.

3. Contact a Mortgage Lender/Broker: If you are not paying cash, you will need to find out what you actually are qualified to borrow. You also need to determine the cash funds you will have available for purchase. This would generally include an earnest money deposit, downpayment and Closing Costs in Hawaii. All of these factors will affect the maximum purchase price for your home. You will need to submit a loan application and obtain a prequalification letter from a lender of your choice. I can provide some names of Mortgage Brokers to work with if you need this.

3. Meet/Interview With Me: We will have an initial interview (hopefully in person, but perhaps, via phone, if you are on the mainland) to discuss mutual expectations and determine whether we will pursue a Broker-Client agency relationship for buying a home on Oahu.

Once a mutual decision is made to pursue the relationship, I request that my clients sign a Buyer's Agreement, which is a contract between the Buyer and myself, setting forth mutual expectations, the services I will provide, and compensation for my services. 99% of the time, my compensation for Buyer's Agent services is paid by the Broker of the Seller of property that is purchased by my Buyer. In rare circumstances, the Buyer will pay directly for my services (usually by wrapping it into the mortgage) -- such as with the sale of a For Sale By Owner property, where the Owner is not offering a Buyer's Agent commission. Typically, however, FSBO's do offer a Buyer's Agent commission and this is paid by the Seller-Owner of the property sold, and is part of the purchase price for the property.

Contrary to common myth, whether or not you are represented by a Buyer's Agent will rarely, if ever, affect the price you will pay for a home for sale in Hawaii. You do not "save money" or "get a better deal" by going into a home purchase without your own professional representation. In fact, you may lose money by making pricing or inspection mistakes. The Seller-Owner of a home has a written listing agreement that requires them to directly pay 100% of the total agreed upon commission (usually 5-6%) to the Seller's Broker, whether or not a Buyer is represented by a Broker. If the Buyer has no Broker, the Seller's Broker does not share the commission with anyone, but rather keeps the full agreed-upon commission and may go into a Dual Agency relationship, getting paid for both the Seller and the Buyer side of the transaction. So, bottom line is that the Buyer typically does not get a rebate or a better price because full commission is still paid by the Seller.

4. Viewing Properties: Before I take you out viewing homes on for sale on Oahu, you should have spoken with a lender and done the preliminary groundwork, to determine the amount you are willing to spend on your new home. There are two important reasons for this: (A) You can be sure that we are seeing the homes in the right price range, not to be disappointed to find out that the home you LOVE is out of your range and (B) you will be prepared to quickly obtain a pre-qualification letter, if you find a property you want to purchase, and lessen the chance of losing it to another buyer in the interim.

Prior to taking you to view homes on Oahu, I will prepare for the showings by sorting through your comments made via the MLS listing website. I will also personally identify other properties that you may like via the MLS. I very often will take a day or two and preview these, in person, if I have not already seen the property with another client or broker's open house, in advance to showing them to you. I will call all of the listing brokers and set up appointments to see them. This will often require 24-48 hours advance notice, since many properties are owner-occupied, requiring preparation, and not all are on lockbox. I will schedule the appointments, allowing time to see each home and for the drive between the various locations. We will go out for as long as our schedules and energy will permit. Typically, I will show Buyers between 4-6 homes in a session, but if scheduling or time on island is an issue, I can always show you more or less.

When we meet, I will provide a schedule for the day and MLS Customer Reports for each home we see. I also usually will provide a CMA (Comparative Market Analysis) Report for all the homes we see which compares the listings by price per square foot. I will also provide other requested information. I will often drive you around the area and show you other points of interest, such and schools, recreation areas and shopping districts, that might be relevant to your home search.

If you wish, you can also see homes on your own, during Sunday Open Houses or Weekly Brokers' Open Houses. Brokers' Opens are on Wednesdays and Thursdays, depending upon area of the island. If my schedule permits and I am not sitting an Open House, I can attend these with you. I will provide you with cards that you may present to the listing broker at these Open Houses, so that you will not have to sign in with your personal information, and the listing brokers may contact me directly for feedback. It is important that we communicate frequently during this process, so that I may better identify the right homes for you.

5. Selecting Properties: When you have identified one or more properties that you are very interested in, I will provide more detailed information on the properties. This may include information or relevant comparable home sales on Oahu, Oahu property tax information, mortgage lien information, Oahu school information, disclosure information, etc. We may also go back for one or more additional showings, including possibly having a few contractors or other experts view the property.

6. Writing an Offer/Purchase Contract: Once you have selected the property you wish to buy on Oahu, you will make an offer. An offer is written up by your REALTOR and signed by you as the Buyer. In Hawaii, most offers are written using a standard Hawaii Association of Realtors (HAR) Purchase Contract (it used to be called the DROA, so you may still hear that term). The Purchase Contract will usually include various Addenda, which may include standard broker addenda, lead paint disclosures (on older properties), short sale addenda, etc. Most of the forms used are HAR Forms. Sometimes, you will see custom forms, such as with a sale in a new condo building or subdivision. Regardless of whether you are using a standard or custom form, all terms and conditions of a Purchase Contract are negotiable between Buyer and Seller. However, your offer typically will be viewed as stronger by a Seller, if it is fairly standard and not full of special or unusual terms and conditions.

In writing up an offer, you will need to consider not only the Purchase Price you will offer, but also other important terms such as Earnest Money, Down Payments, Closing Dates, Closing Costs (who pays what), Inspection Periods, Financing, any Contingencies, and any special terms required. I will cover each of these items and discuss preferred timing with you, with the goal of having every phase of the Purchase Contract during the escrow period, fall precisely into place.

In Hawaii, the main Contingencies and other items affecting the standard Purchase Contract are (1) Acceptance of Real Property Disclosures (2) Home Inspection (commonly referred to as C-51), (3) the Financing Contingency, (4) Title Report (5) Survey and (6) Termite Inspection. I can explain these is further detail, if you have questions.

7. Acceptance/Counter Offer: Upon receipt of your offer to purchase a home on Oahu (via Purchase Contract), the Seller will either accept the offer within the specified time frame, or reject the offer by either (a) submitting a Counter-Offer or (b) doing nothing, both also within the specified time frame. If there is a Counter-Offer, you may accept this or go back and forth with another Counter-Offer, until someone either accepts or ends the process by not responding. Reaching a signed agreement sometimes requires multiple Counter-Offers back and forth.

8. Escrow: Once an agreement is reached, the Earnest Money will be deposited, escrow will be opened on the property and timelines will start running as of the Acceptance Date, as indicated in the Purchase Contract. The Buyer will then select the Home Inspector and Termite Inspector (usually), as indicated in the Purchase Contract and begin the process of due dilligence on the property. The Buyer will also work on the Loan Contingency, if there is one, including obtaining any required property insurance policies. In the meantime, the Seller will be working to fulfill his obligations by providing disclosures, Home Owner Association documentation (if any), Survey and other contract requirements. I will attend and facilitate all inspections, unless otherwise requested, answer any questions, and provide all necessary transaction documentation to the Escrow Agent and the Lender, as required. Buyer will submit all additional down payment monies, under the timelines set forth in the Purchase Contract.

9. Closing: When all requirements are met and contingencies satisfied (or waived), closing documents will be signed by the parties. This is typically not done with Buyer and Seller together in one room. Sometimes it is done remotely, using email and express mail. Often, it occurs at the Escrow company with the Buyer and Seller signing separately. I will attend this to provide moral support, if needed, and help answer any questions, unless otherwise requested. Even if I am not in attendance, I will review the Estimated Closing Cost Statement and work with the Escrow Agent and Lender to help to answer any questions you may have regarding the closing documents.

10. Recordation: Typically, upon recordation, you may take possession and move into your new home. The transaction will not be recorded, usually, until a few to several days after signing of closing documents, and always after funding of the loan.

11. Congratulations!

Wow, the condo market is picking up. As with single family homes, we are seeing more and more condos selling for at or above the asking price. This is to a lesser extent in some areas of Honolulu and Leeward, and more so in very desirable areas like Mililani. Expect to see more with the last minute rush to purchase and get in for the First Time Homebuyer's Tax Credit for 2009. Inventory is decreasing too. Take a look at the stats:

In the last 6 mo, this is how the Fee Simple Condo sales went for units listed at $500,000 and under in price in the following areas:

SEPTEMBER 2009 - OAHU CONDOS UNDER $500K LIST PRICE

It's amazing how many of these properties are going for at or above the asking price, 25%-44% in many areas. And then look at the inventory compared to how many are currently in escrow. My recent experience has been that despite the "buyers' market," the really good units go fast, so I am encouraging my buyers to put their best offer forward the first time. Otherwise, the result is disappointment in losing out over and over. While there are still "good deals," these are not usually on the cleanest, most remodeled and desirable properties. Aloha, and happy househunting!