Words of Wisdom from Hawaii’s renowned Economist Paul Brewbaker, Phd, CBE
This is a very informative video shared by Paul Brewbaker, our go to economist for understanding the impact world events have on Hawaii’s local housing market. As with most information of this nature, there is a time lag to process the data. Oahu existing home sales prices started drifting off trend as early as 2018, however we didn’t see any collapse in prices as of May 2020. We did see a drop which was precipitated by the crack down on undocumented vacation rentals, but even with Covid-19 we did not see a collapse as of May. Will be looking forward to Paul’s next briefing, via Zoom of course.
Texting and Mai Tais
Setting foot on our beautiful island of Oahu for the first time whether you’re coming here for a long awaited vacation or moving to Hawaii for work, the first thing to be aware of is Honolulu’s fines for cell phone use. Before you start driving to the North Shore, unpack your phone holder for your car. Fines can be stiff at $250-$300 depending if you’re in a restricted area like a school or construction zone. Basically, your engine cannot be running and your car must be parked but not in the way of traffic which means you can’t hold your phone while you’re idling at a light or stop sign. Just holding your phone can warrant a ticket. Nowadays, cell phone holders are as cheap as $6.99 on Amazon so it wouldn’t hurt to order one before you leave for Hawaii. At that price, if you forget it in the rental car you won’t kick yourself when you get home. 
Most of you are not surprised about fines for using your phone while driving but this one you might be as Honolulu is the first major city in the United States to pass a law against pedestrians viewing a mobile device while crossing the street. You can talk on your phone while crossing the street but your eyes need to be mobile and not glued to your device, no texting. The fines start at $15-35 and go up for repeat offenders and I’m pretty sure you’d rather spend that sipping on a Mai Tai at Waikiki Beach.
Just a head's up, walking and texting may not be illegal on the outer islands...
Negotiations Start Now!
Not surprising, there is a lot of thought that goes into buying a property and as soon as you get the tickle in your brain that you might want to consider purchasing a home, buyers need to shift into the negotiation mode ... before walking out your front door or picking up your phone to text your best friend about this new revelation you’ve made.
First of all, Oahu is a small island with a lot of buyers that may be competing for the same inventory. When you have less than 5 properties any given day that fit your budget and needs, the last thing you want to do is bring any of those properties to the attention of a potential competitor. Human nature makes us want to make small talk or “talk story” leading to casual comments about anything. That casual comment can be the start of a telephone chain of communication. One of my clients lost a bid against 12 other buyers. He went to Los Angeles for a convention and ended up chatting with an unknown colleague who happened to bid on the same property back on the east coast. It’s a small world and small talk anywhere except in your own car or house with the windows closed and only with your closest confidants could potentially lead to the loss of your dream house ... a little exaggeration but why chance it?
A totally different scenario is when you visit an open house. Innocent enough, you walk in, make small talk with the realtor at the property. Technically, any individual realtor that works at the brokerage firm with the sign in the lawn, represents the Seller(s) and that realtor is obligated to share any information with the Seller(s) that you shared with them or that they noticed about you. For example, if you make comments between each other that the kitchen was outdated and the rugs need to be ripped out and the agent overhears you and then you decide to make an offer, either with that agent or with your agent, that agent that overheard you is supposed to share with the Seller(s) that you were the visitor to the open house that mentioned you thought the kitchen was too small and the rugs had to be replaced. The Seller(s) are very fond of their kitchen as they raised their 5 kids in it and take offense that you think it was too small for you and not good enough the way it is. No matter how hard the agent tries to tell the Seller(s) that it is nothing personal, there is always a chance the Seller(s) will choose to take it personal making it more difficult for the Seller(s) to accept your offer.
Buying a house in a seller’s market goes without saying, COMPETITIVE. Whether you’re a competitive person or not, the reality is keep your cards close to your chest and lips tight as Loose Lips Sink Ships and in this case Loose Lips Lose Houses or money ... either way the less said, the better except with your Buyer’s Agent and your lender. They work for you!
Not surprising, there is a lot of thought that goes into buying a property and as soon as you get the tickle in your brain that you might want to consider purchasing a home, buyers need to shift into the negotiation mode ... before walking out your front door or picking up your phone to text your best friend about this new revelation you’ve made.
First of all, Oahu is a small island with a lot of buyers that may be competing for the same inventory. When you have less than 5 properties any given day that fit your budget and needs, the last thing you want to do is bring any of those properties to the attention of a potential competitor. Human nature makes us want to make small talk or “talk story” leading to casual comments about anything. That casual comment can be the start of a telephone chain of communication. One of my clients lost a bid against 12 other buyers. He went to Los Angeles for a convention and ended up chatting with an unknown colleague who happened to bid on the same property back on the east coast. It’s a small world and small talk anywhere except in your own car or house with the windows closed and only with your closest confidants could potentially lead to the loss of your dream house ... a little exaggeration but why chance it?
A totally different scenario is when you visit an open house. Innocent enough, you walk in, make small talk with the realtor at the property. Technically, any individual realtor that works at the brokerage firm with the sign in the lawn, represents the Seller(s) and that realtor is obligated to share any information with the Seller(s) that you shared with them or that they noticed about you. For example, if you make comments between each other that the kitchen was outdated and the rugs need to be ripped out and the agent overhears you and then you decide to make an offer, either with that agent or with your agent, that agent that overheard you is supposed to share with the Seller(s) that you were the visitor to the open house that mentioned you thought the kitchen was too small and the rugs had to be replaced. The Seller(s) are very fond of their kitchen as they raised their 5 kids in it and take offense that you think it was too small for you and not good enough the way it is. No matter how hard the agent tries to tell the Seller(s) that it is nothing personal, there is always a chance the Seller(s) will choose to take it personal making it more difficult for the Seller(s) to accept your offer.
Buying a house in a seller’s market goes without saying, COMPETITIVE. Whether you’re a competitive person or not, the reality is keep your cards close to your chest and lips tight as Loose Lips Sink Ships and in this case Loose Lips Lose Houses or money ... either way the less said, the better except with your Buyer’s Agent and your lender. They work for you!
High Upon A Hilltop Open House!
45-20B Malulani St., Kaneohe, HI
OPEN HOUSE August 05, Sunday 2:00 PM – 5:00 PM
$ Click for current price
4 BEDROOMS | 3 (2 full, 1 half ) BATHROOMS | 2384 SQUARE FEET
Unique custom built Kaneohe contemporary featuring sunroom on top floor with outside entrance and beautiful views of K Bay and vegetation. The lanai and windows offer a liberating feeling. The main level features the kitchen, dining room, 3 Bedrooms and full bath. A few steps up & you’ll enter a private master BR suite with a newly renovated master bathroom with double sinks and a soaking tub. A large spacious living room for entertaining is off the front lanai and is adjoined by the indoor laundry room & powder room with access to the very private rear yard.
Presented By:
Lydia Bishop
Broker/Owner
Sesame Realty LLC
808-628-0331
Licensed In: HI
License #: RB-22469
are priceless and my caring is real.”
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