Editor’s Note: The following is an excellent post written by Jennifer Mackay. Enjoy.

When a home goes on the market, its owners run through a routine list of things to do to make it sell as quickly as possible. They clean, they repair, and they update. Then, they hire a Realtor, have photos taken and make fliers to hand out at open houses.

An item that might not be on the list – and in this day and age, it probably should be – is “create a virtual tour.” Real-estate experts say making a good-quality video of a home for sale is one of the best and cost-effective marketing tools around. (more…)

Editor’s Note: I received the following letter from Tom Vu, a Canadian who recently invested on a Maui condominium. These are his views from the perspective of a non-Hawaii resident who owns/operates a vacation rental condo and how the proposed legislation of HB 2078 would affect him.

I’m writing to you from the perspective of a Canadian who had just bought an investment property in Maui.

My wife and I are in our late forties.  We have two children.  Our older son is in university while the younger one will be attending high school.  We aren’t old but are approaching retirement age.  As such we increasingly think about our retirement and what we have to do now to prepare for it. (more…)

Sotheby’s Reigns in Maui Luxury Real Estate

The U.S. real estate marketplace has been truly affected by the recession and continuing worries about the global economy due to concerns of Europe’s future, yet Maui continues to maintain its reputation as one of the strongest long-term equity markets in North America by showing significant signs of improvement. Of particular note is the high end sector of Maui real estate. Affluent buyers are back in Maui again and it has reflected on some very impressive numbers. (more…)

Maui Real Estate: Disclosure

Recently a client asked what needs to be disclosed by the seller in the course of a real estate transaction. In the Aloha State, Hawaii Revised Statue Chapter 508D requires a seller of real property to disclose material facts known to the seller that can be observed from visible accessible areas. Great. But what does that mean?

First, let’s define ‘material fact’. The applicable Statue defines it as “any fact, defect, or condition, past or present, that would be expected to measurably affect the value to a reasonable person of the residential real property being offered for sale.” Simple enough. Armed with that definition, filling out the Seller’s Real Property Disclosure Statement should be a cinch! Except, it isn’t. For example, if somebody died in a home, should that be disclosed under additional facts? To some people, this is critical information which will automatically disqualify that property as a potential purchase, yet to some others it is not a big deal. Or in a question such as ‘Is the property subject to excessive air pollution’, with what metric is ‘excessive‘ measured? Some people may be extremely sensitive to air conditions, vog being specific to Hawaii, hence they would consider ANY level pollution to be restrictive of their enjoyment and, as such, excessive. Furthermore, whether there is a ‘pest problem’ can be open to an individual perceptions. Although a seller may find mice from time to time in a Kula property (which is quite common) and not find it to be a ‘pest problem’, a buyer unaware of overall conditions in that district may find it to be an a HUGE problem. Clearly, interpretation can be very subjective and it could easily be argued one way or the other. Just ask any attorney worth their sheepskin.

As a seller, by disclosing all known material facts in good faith and with due care, it’d present a much stronger position if said disclosure came into question in front a judge and jury. So whether to avoid potential liability or, well, to do the right thing: if in doubt, then disclose it!

Disclosure: The opinions on this post are NOT legal advice. The author is NOT an attorney nor has ever portrayed one on TV. Potential buyers are encouraged to consult experts in the appropriate field (i.e. law, taxes, financial planning, construction, engineering) in order to best protect their interests.

One of the biggest pieces of legislature concerning the foreclosure process is Hawaii’s Act 48, which was implemented in May. Take a moment to read more about Act 48 and how it changed the foreclosure process in Hawaii. There have been a myriad of consequences, some expected by those who crafted the legislation and some unforeseen.

First, Fannie Mae et al quickly adapted by changing their policies, whereby they would be pursuing foreclosures through the judicial route rather than non-judicial. Some critics say that foreclosing lienholders are skirting around what the legislation intended to do (protect homeowner’s rights), but clearly the judicial route was always an option. When there is a traffic jam in your favorite shortcut home, you take the longer way that still gets you there. This should have been expected and is well within the lienholder’s rights to do so. In addition, as owner-occupants are allowed to request mediation on non-judicial foreclosures, this is allowing homeowners more time in their home. Although the intent of this legislation is to allow homeowners (who must be occupants of the property) an opportunity to meet with their lender and try to work out mutually agreeable resolution, it is also clear that many may use this method to stall the process and prolong their stay in their property – presumably without paying mortgage payment during the foreclosure process. Furthermore, with some of the largest lienholders foreclosing judicially now, it has created a logjam in the courts, which were already underfunded and understaffed. This is merely prolonging the inevitable: these distressed properties must be absorbed by the market. Whether it happens now or in 2 years, it is a reality that we have to face.

Act 48 had a noble intent: protect rights of homeowners at a time when lienholders may be hastily foreclosing on properties. However, the implementation of this legislation fell short of its mighty objectives. If you have been impacted by Act 48 or have feedback, leave us a comment.