Honolulu Real Estate: The Coconut Wireless

There is a technique that has been attributed to Benjamin Franklin and used when faced with a decision.   As the lore goes, whenever Ben was faced with a decision, like you are now, he'd take a piece of paper, draw a line down the middle of it.   On the left side, he'd list all the reasons he should do something and on the right side, he'd list the reasons to avoid doing that thing. Would-be home buyers are faced with the decision of whether to buy in today's market with uncertainty about inflation, the presidential election, the economy, higher than recent mortgage rates, and increased home prices, just to mention a few. Some people have been put on the sidelines because they cannot qualify for a mortgage and others have sidelined themselves, even though they have the funds and resources, because of all the "noise" in the market.   Looking at the advantages of renting versus buying may bring clarity. Advantages of Renting: Financial Flexibili

Beginning August 17, 2024, many agents will be required to enter into a written agreement with a buyer before touring a home either in-person or through a live virtual tour and buyers should be familiar with what it entails. There have been buyer agreements for decades in the real estate industry and it was always suggested that the agent have a buyer acknowledge it in their first substantive meeting.   The practice of when it was signed was not scrutinized which is why some buyers may not be familiar with the practice.   The agreements benefit both parties specifying obligations and duties.   The advantages for the buyer include: Dedicated Representation: A buyer's agreement ensures that the agent is committed to representing the buyer's best interests throughout the entire home buying process. Clear Expectations: The agreement outlines the scope of services provided by the agent, including their duties and responsibilities, helping to establish clear expectati

Home insurance rates have increased by almost 20% nationally between 2021 and 2023 and even more in some states like Arizona where rates have jumped 62% in some cases.   The appreciation that homeowners have enjoyed, especially in the past four years, has caused premiums to increase because the values are higher.   In addition, insurance is affected by inflation due to the increased cost of labor and building materials used to calculate the replacement cost of the dwelling. Natural disasters, especially in coastal areas, tornados, fires, and hail are just a few of the things that insurers have paid considerable claims and are driving the prices of premiums higher.   Some insurers are pulling out of high-risk areas which make it difficult for homeowners to not only find coverage but at reasonable prices. There are several things that homeowners can do to lower the cost of their policies. Increase Deductibles - Opt for a higher deductible to reduce premium costs, but ensu

In the 1980s, home buyers faced significantly higher mortgage rates compared to today's market. Despite this challenge, many people successfully purchased homes and made them worthwhile investments. They employed a range of strategies to manage costs and ensure affordability. Here are the key tactics they used, explained in detail: To reduce the amount borrowed and thereby lower monthly payments, many buyers saved for larger down payments. By putting more money down upfront, they could decrease their loan-to-value ratio, often securing better interest rates and reducing private mortgage insurance (PMI) costs. Strict budgeting was essential. Buyers meticulously planned their finances, cutting unnecessary expenses and prioritizing savings. This disciplined approach enabled them to accumulate sufficient funds for down payments and to manage ongoing homeownership costs without financial strain. Purchasing smaller or starter homes was a common strategy. These properties

Online estimates like Zillow, realtor.com, Redfin, & Homes.com are convenient, but typically lack accuracy and may have a significant margin of error.   They are constructed using a computer-generated algorithm that utilizes historical public sales data and trends called an Automated Value Model, AVM. National AVMs derive values from automated computer modeling of public records and may not reflect the true value of a home due to the nuances of local markets.   An experienced agent, familiar with home sales in the area, takes several steps to arrive at a more accurate fair market value. Real estate agents provide invaluable expertise by leveraging their deep understanding of local market conditions. This includes insights into neighborhood trends, recent sales data, and current inventory levels. By tapping into this knowledge, agents can accurately assess the fair market value of a home. They conduct thorough property inspections, meticulously noting its condition, un

You are encouraged by the Federal Trade Commission to be sure the information on your credit reports is accurate, complete, and up to date at least once a year.   It is an important part of your financial life that can determine whether you get credit, the terms of the credit and how much it will cost. In addition to borrowing money, good credit could affect premiums on insurance, employers' hiring decisions, ability to rent a home. Checking your credit history and credit scores: Helps you better understand your current credit position. Makes you aware of what lenders may see. Protects you from inaccurate or incomplete information. Recognize identity theft. Free annual credit reports can be ordered from Equifax, Experian, and Transunion through their centralized website - AnnualCreditReport.com , toll-free phone number ... 877-322-8228, and mailing address ... Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. These are the only ways to

Homeowners should verify their home's equity at least once a year because the two factors that affect it change regularly.   Market value changes and the unpaid balance of the home decreases with each monthly payment made on an amortizing loan.   Amortization and appreciation cause the equity to increase in value.   Knowing your equity gives you options with regards to refinancing the home and releasing part of that equity. The equity in your home can offer a financial safety net providing funds for emergencies or major life events, leveraged for investments or home improvements.   An annual update on your home's equity will ensure you stay informed about your financial position and opportunities for growth. Refinancing a residence is a strategic financial move that allows homeowners to optimize their mortgage and tap into various benefits. Whether it's about securing a lower interest rate, consolidating debt, or accessing cash for significant life events, r

In the realm of real estate transactions, the decision to engage a friend who also happens to be an agent may seem like a tenuous situation and may cause some hesitation. Concerns about how professional relationships may impact their personal connection occasionally weighs on a person's mind, leading them to consider alternative options. It may stem from the fear that any hiccups or disagreements during the transaction may strain or even jeopardize the friendship. It may actually be the opposite.   There are many advantages to working with a professional to find your home who also happens to be your friend. Trust: Having a friend as your agent allows for a pre-existing level of trust, enhancing communication and transparency throughout the transaction. Personalized Service: A friend-agent is likely to provide highly personalized service, tailored to your specific needs and preferences. Understanding: Friends understand your lifestyle, preferences, and priorities, enab

While the process of downsizing may initially focus on finding a smaller property, it's essential for homeowners to also think ahead and plan for the future by including considerations such as aging in place, healthcare needs, and financial security, and offer guidance on creating a comprehensive plan for the years ahead. Assessing Long-Term Needs Before downsizing, take the time to assess your long-term needs and goals. Consider factors such as your health, mobility, and lifestyle preferences, as well as any anticipated changes in family dynamics or caregiving responsibilities. Think about how your housing needs may evolve as you age and whether your downsized home will be able to accommodate these changes. Aging in Place Many homeowners choose to downsize with the intention of aging in place, remaining in their home as they grow older. When selecting a downsized property, prioritize features that support aging in place, such as single-level living, wide doorways a

Real estate professionals offer expertise in the local market, guiding buyers toward suitable properties and negotiating favorable terms. They provide comprehensive support throughout the home buying process, managing logistics and serving as trusted advisors. Additionally, agents have access to a network of allied professionals, streamlining the transaction and ensuring smooth coordination. They also advocate for buyers' interests, negotiating on their behalf and addressing challenges that may arise, providing peace of mind and confidence in decision-making. The following is a list of services typically provided to a home buyer by a real estate agent but can vary depending on negotiations between the principals. Property Search: Assist the buyer in identifying properties that meet their criteria, including location, size, amenities, and budget. Market Analysis: Provide information and analysis on market trends, property values, and comparable sales to help the buyer

Are you one of the many would-be homebuyers holding off on purchasing a home, hoping for a favorable shift in the market? With insurance, property taxes, and maintenance costs on the rise, it's understandable why some are hesitant to take the plunge. However, the reality is that these factors affecting affordability are compounded by the continuing increase in home values. The dilemma is clear: should you wait for conditions to improve, or should you act now? The Affordability Challenge - Escalating insurance premiums, property taxes, and maintenance expenses are making homeownership less attainable for many prospective buyers. As these costs continue to climb, the dream of owning a home may seem increasingly out of reach. The strain on affordability is further exacerbated by the relentless rise in home values, especially in competitive markets where demand outpaces supply.   The Waiting Game - In the face of these challenges, some buyers are adopting a wait-and-see a

The familiarity and trust established in a friendship may be the ideal foundation for a successful business relationship. Having a loyal ally from their social circle adds a new level of insight and service to such an important financial decision in their lives. When considering the choice of engaging a friend who also happens to be a real estate agent in the purchase or sale of their home, consumers are presented with a multitude of compelling reasons to embrace this option. Firstly, the pre-existing level of trust between friends lays a solid foundation for effective communication and transparency throughout the transaction. This trust, combined with the highly personalized service that a friend-agent can provide, ensures that the process is tailored to the individual's specific needs and preferences. Additionally, friends understand each other's lifestyles, priorities, and goals, allowing for a deeper level of advocacy and support throughout the real estate journ

Household pests can be a persistent and an unwelcome challenge for homeowners, disrupting daily routines and potentially posing health risks to occupants. From ants marching across kitchen countertops to rodents scurrying through attics, the presence of pests can create a sense of unease and frustration. However, understanding the common pests that may invade homes and implementing effective solutions can help mitigate these issues. In this article, we will explore the various types of household pests encountered by homeowners and provide practical solutions to address and prevent infestations, ensuring a cleaner, healthier living environment for you and your family. Ants are often found in kitchens and around food sources and can be a common nuisance in homes, especially during warmer months.   Solution: Keep kitchen surfaces clean, store food in airtight containers, seal cracks and openings where ants can enter, and use ant baits or natural repellents to deter them. Co

Upcoming changes in real estate transactions are imminent following the resolution of significant class action lawsuits involving sellers and the National Association of REALTORS� along with numerous leading real estate firms nationwide. These changes will have implications for sellers, buyers, and agents alike. There has been a lot of news coverage in the past few weeks but unfortunately, much of it has added to the confusion on how things will change rather than clarify it. It was reported that since the seller will most likely be paying only their commission, the price of homes will come down.   That is very unlikely to happen.   The value of a home is not determined by whether a commission is paid nor the amount of it. In the terms of the settlement, which is still to be approved by a court, the change will go into effect on August 17, 2024 but some companies will implement the changes earlier.   The following excerpts are taken from the NAR Settlement Fact Sheet .

The tax benefits of owning both a first and second home can be significant, with the IRS allowing taxpayers to deduct interest and property taxes on both properties as itemized deductions on their tax returns, albeit with certain limitations. Interest deductions are limited to the amount of debt incurred to buy, build, or improve the first and/or second home, with a maximum cap of $750,000. Property taxes, falling under the limitation of state and local taxes as set forth in the TCJA of 2017, are capped at $10,000 per year. However, while second homes enjoy these benefits, they do not qualify for the Section 121 exclusion sale of principal residence rules. These rules only apply to a taxpayer's principal residence, allowing couples filing jointly to exclude up to $500,000 of capital gain from the sale of their primary home, and single filers up to $250,000 of gain, provided they have owned and used the property as their principal residence for two out of the five preced

The gain on the sale of your home is determined by the price you sell the home, less selling expenses, less the price you paid for it, plus the capital improvements made during the time you owned the property. IRS and accounting use the term "basis" to describe your cost in the home.   It is a dynamic number that changes over time based on capital improvements that are made and capital losses that are incurred.   What is called the tax basis may better be referred to as cost basis.   It is the taxpayer's cost in the property used to determine the tax on the gain of the sale. The calculation begins with the purchase price of the property plus certain capitalized acquisition costs that were owed by the seller but were paid when purchased.   Examples would include real estate taxes owed through the day before the sale date, back interest owed by the seller, and charges for repairs that were the seller's responsibility.   Capital improvements made to the prop

Owning a home has long been considered a fundamental part of the American dream. It represents far more than just having a place to live�it embodies values, aspirations, and a sense of security. Here's why homeownership is widely regarded as a key component of the American dream: Stability and Roots: Owning a home provides a sense of stability and roots in a community. It allows individuals and families to establish themselves, put down roots, and create a sense of belonging. Wealth Building: Homeownership is often seen as a pathway to wealth building. By building equity over time, homeowners have the potential to accumulate wealth, establish financial security, and pass down assets to future generations. Personalization and Pride: Homeownership grants the freedom to personalize and customize a space according to personal taste and style. It offers a sense of pride and accomplishment, as homeowners can create a place that truly reflects their identity and values. Co

Are you in the market for a new home and wondering which mortgage option is right for you? While the world of home financing offers a surplus of choices, one option often overlooked is the Adjustable Rate Mortgage, or ARM. If you're in a market where interest rates are trending lower, an ARM could be the key to significant savings and financial flexibility. The problem is simple, while you're waiting for interest rates to come down, the price of homes are still going up.   Any savings from the lower interest rate could more than be offset by the increase in purchase price due to appreciation.   Buying at today's prices with an interim loan might be the answer. Picture this: You've found your dream home, and it's time to secure financing. An ARM often starts with a lower initial interest rate than a fixed-rate mortgage. This means your monthly payments will be more manageable from day one, allowing you to allocate your budget wisely. In a market wher

Downsizing can be a significant life transition for any age person, but especially for seniors who may have lived in this last home for some time. Follow these suggestions to make the downsizing process smoother and less stressful. Start Early: Begin the downsizing process well in advance of your planned move. Give yourself plenty of time to make decisions and avoid feeling rushed. Assess Your Needs: Evaluate your current and future needs in terms of space, accessibility, and location. Consider factors like health, mobility, and proximity to family and healthcare facilities. Create a Plan: Develop a comprehensive downsizing plan that outlines your goals, priorities, and a timeline for each task. Having a plan will keep you organized and focused. Declutter: Go through your belongings room by room and decide what to keep, donate, sell, or discard. Be realistic about what you truly need and use regularly. Seek Professional Help: Consider hiring a professional organizer, downsizing

Who wouldn't want to reside in a beautiful neighborhood adorned with meticulously manicured lawns? While some homeowners relish the thought of working on their yards, others may not share the same enthusiasm. If you've ever contemplated the idea of installing artificial turf, also known as fake grass, as a part of your landscape, it's essential to consider both its advantages and drawbacks. Let's Begin with the Advantages: Modern advancements in artificial turf technology have rendered it nearly indistinguishable from real grass, offering an evergreen and perpetually lush appearance to your landscape. One of the most significant perks of artificial turf is the elimination of the need for regular mowing and trimming. This translates to potential cost savings by reducing monthly expenses associated with professional yard maintenance. Artificial lawns are highly durable and can endure for up to two decades with minimal upkeep. Many manufacturers incorporate

Imagine looking around your home and wondering how you can make it shine during those crucial showings. The answer is simple: staging! It's a powerful tool that can transform your property and raise its appeal. Your online listing photos serve as the initial showcase for potential buyers. Staging plays a crucial role in enhancing these images, making them more captivating and inviting. It sets the stage, quite literally, for a positive first impression. When buyers scroll through your listing, professionally staged rooms catch their eye, drawing them into the story your home tells. Staging isn't just about creating a visually pleasing environment; it's about sparking an emotional connection. A well-staged home exudes warmth and welcome, making it easier for buyers to picture themselves living there. It's a canvas upon which they can paint their own future, creating an emotional bond with the space that lingers long after the showing ends. The numbers don&#

Owning a home not only provides a sense of stability and pride but also opens doors to potential tax benefits. As a homeowner, understanding tax credits can significantly impact your financial well-being. Let's delve into some key tax credits and deductions available to homeowners and how they can help you maximize savings. If you've made energy-efficient improvements to your home in the past year, you may qualify for the Residential Energy Efficiency Property Credit. This credit allows you to claim a percentage of the cost of qualifying energy-efficient upgrades, such as solar panels, energy-efficient windows, and HVAC systems, up to certain limits. Not only do these upgrades help lower your utility bills, but they also contribute to a more sustainable future while providing tax savings. Another valuable tax credit available to homeowners is the Residential Renewable Energy Tax Credit. This credit applies to the installation of renewable energy systems, such as sol

Over the last 60 years, the average sales price of homes has appreciated at a rate of 5.56% annually, according to the Federal Reserve Economic Data . During the same period, rent has increased at a rate of 3.88% annually which presents a compelling argument in favor of homeownership. When the figures are analyzed, it becomes evident that homes have not only appreciated in value at a faster rate than the increase in rental costs, but they have also provided homeowners hedge against inflation and a substantial asset that builds equity over time. In the report called "Building a Case for Homeownership Today!", the reader will discover the real cost of homeownership is most likely less than they are paying in rent because of the two powerful dynamics of amortization and appreciation that are not currently working in their favor.   As they continue to rent, the dynamics work in favor of their landlord. The median homeowner has a net worth of $396,000 compared to ap

Before diving into renovation projects, it's important to understand which upgrades are likely to boost your home's value and which ones may not yield a significant return on investment. While certain improvements can enhance your home's appeal and attract potential buyers, others may fall short of expectations. It's prudent to explore examples of home improvements that have the potential to increase your home's value, as well as situations where renovations may not have a substantial impact on its worth. By gaining insights into these factors, homeowners can make informed decisions and maximize their return on investment when upgrading their properties. Home improvements that may increase the value of the home: Hardwood floors ... Refinishing or updating to wood floors have good appeal and have a high return on the cost. Kitchen Remodel - Updating the kitchen with modern appliances, countertops, and fixtures can increase the home's value by imp

When exploring the benefits of homeownership, it's more than just having a place to call your own. Among its many advantages, homeownership stands as a formidable safeguard against inflation and a strong vehicle for long-term wealth accumulation. This article will delve into the dynamics of appreciation and amortization, explaining why owning a home can be one of the most impactful financial decisions you can make. Inflation, the overall upward price movement of goods and services in an economy, erodes the purchasing power of money. In simpler terms, as inflation rises, each dollar you have buys a smaller percentage of a good or service.   The same inflation that is driving rising mortgage rates is putting upward pressure on home prices and rents. Over the past sixty years, homes have appreciated in value at an annual appreciation rate of 5.56% according to the Federal Reserve Economic Data.   As a homeowner, you want to benefit from the appreciation.   Inflation for th