Table of Contents Message From GAR
Emperor’s Corner Departments 6
Market Report Your comprehensive look at the trends of the real estate market.
Feature Record Low Mortgate Interest Rates: Don’t Miss the Boat
From the Experts Title Insurance and Escrow, Who Needs It?
Profile Siska S. Hutapea “Growing up in Real Estate”
Who Ya Gonna Call?
Happy Holidays! It has been an honor to serve as the 2007 and 2008 President of the Guam Association of REALTORS. I was presented with great opportunities to serve the REALTOR members and the community because I Arnold Jose • President was blessed with a strong and dedicated leadership team. I wish to thank the 2008 GAR Leadership Team - President-Elect Steffen Niu who has been a great leader who has served GAR as the Vice- President, Treasurer, Director and has served in many GAR committees. I have absolute confidence in his ability to lead GAR to a higher level of that we have been able to achieve. He is very intelligent and capable professional, but more importantly he is passionate about GAR and all its members. We were able to achieve most of the initiatives that we presented at the Strategic meetings held in January. A special thanks to our Vice-President, Neat Muna who successfully negotiated and achieved GAR’s first Health Insurance plan for the Guam Association of REALTORS and its affiliates. Additionally, we have also been blessed with record membership reaching upwards to 400 members. Many may think that that is way too much REALTORS for this small island that we call Paradise, I believe that this creates opportunity for all by giving us more partners who can compete fairly and ethically to serve the island consumers with higher standards. GAR’s unprecedented Public Awareness Campaign has been victorious, thanks to the tremendous work of our Public Relations Chairperson, Marilou Lacson, and her committee for doing an outstanding job. The Public’s perception of REALTORS has changed from merely real estate agents to compassionate and a caring group of professionals who build communities by helping those achieve the American dream of homeownership and educate and remind the consumers of the advantages of building long-term wealth through homeownership. More importantly, the public at large recognizes GAR as a group whose is always willing to help the less fortunate and support our local charitable organizations.
January 2009 • Vol. 2 • No. 1
Closing Guam Association of Realtors
CasaGuam is Published by:
Why Use A Realtor®?
P.O. Box 24881 Barrigada, GU 96921 Tel: (671) 472-3495 | Fax: (671) 472-3498 email: firstname.lastname@example.org
The participation of the members have been nothing less than phenomenal due to the GAR events sponsorship committee. Special thanks to Sponsorship Chairperson, Angie David-Araullo whose charm nonetheless convinced many of our many affiliates to sponsor over $80,000.00 worth of GAR events in the last two years. Her diligence and commitment to GAR and its members is commendable and appreciated. The sponsored events benefited all REALTOR members and the community. Thanks to my 2008 Leadership team-PresidentElect Steffen Niu, Vice-President-Nenita Muna, Treasurer- Bree McDowell, Secretary-Helene Anderson. Board of Directors: Tom Godwin, Nick Captain, Layla Raymonova, Scott Campbell, Diane Lee, Moe Cotton and Christopher Felix. Committee Chairpersons: Community AffairsLoisa Cabuhat and Sue Biolchino, MembershipClare Delgado, Grievance-Frank San Agustin, Jr., Education-Liz Duenas, Legislative-Chris Felix, Federal Political Coordinator-Joy Jose, Moe Cotton-Military Affairs, MLS-Ryan de Guzman, Professional Standards-Louisa Wessling, Public relations-Marlou Lacson, Run for Shelter-Noli Villaverde, Sponsorship-Angie Araullo, Brokers Forum-Nick Captain and Technology-Joseph Pereda. Finally our Executive Officer, Peggy AraulloLlagas whose handling of the day to day operation of a ever growing organization is nothing less than incredulous. I am absolutely proud of her accomplishments as she has brought GAR to highest possible level as a professional organization that our members deserve. Her unparalleled commitment and insatiable thirst for REALTOR knowledge has propelled Peggy to be a prolific and exceptional Executive Officer who is always prepared and, more importantly, able to serve our members well. I am positive that she will continue to serve GAR well and will be bring us yet again to another level of professionalism. Thanks for giving me the chance to serve you and for your prayers, encouragement, friendship and support.
ARNOLD C. JOSE 2008 President
Guam Association of REALTORS® Publisher Business Sales Manager Traffic/Circulation Manager Production Manager Production Assistant Graphics & Layout
Yellow Pages Ink Jay-R S. Dominguez Josie Redmond Mark S. Burke Lynda Young Mark S. Burke Jon Barnhart Editor Janiece A. Sablan Editoral Contributors W. Nicolas Captain Peggy Araullo Llagas Faye Varias
CasaGuam Advertising Disclaimer All Advertisers agree to hold the publisher harmless and indemnify it against any and all claims, losses, liabilities, damages, costs and expenses (including attorney’s fees) made against or incurred by the publisher, officers or employees with respect to, or arising out of, the content, text, graphics or representations of any ad published herein, including but not limited to the sole negligence and/or fault of the publisher. The publisher is not liable for any claims, losses or damages of any kind, arising from the wording, text, graphics or representations of any ad published herein, or the condition of the articles sold through the publication, or performance of services advertised in this publication. All advertising and/or performance of services advertising and/or submissions become wholly the property of CasaGuam Magazine. CasaGuam Magazine is a registered trademark of PTI Pacifica Inc. Copyright © 2008. All rights reserved. Reproduction in whole or in part in any form without the express written consent of the publisher is prohibited. We reserve the right to edit or refuse any ad and to reprint any photo for promotional use.
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Real Estate Listing By Village
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Local Confidence Bouys Guam Real Estate Market; Median House Price Hits New High Although foreign investment in Guam real estate appears to be temporarily sidelined, local investors have remained confident, limiting the anticipated slowdown in sales activity. The 2008 3rd quarter statistics are relatively robust, reported Nick Captain, President of Captain Real Estate Group, with $99.8 million in sales volume. However, year to date real estate sales volume is down by 41 percent vs. 2007 figures. “We were expecting a steeper decline in activity”, stated Captain. A number of high priced sales involving local buyers kept the market from a sharper fall. “We don’t see the high price sales activity continuing through the 4th quarter and we are projecting another 40 percent decline. The majority of investors remain in a wait-and-see mode, primarily due to global economic volatility and credit issues as well as the local moratorium on development. And keep in mind that 2007 was a very strong year in Guam real estate. Anything measured against 2007 will likely reflect a steep decline”, said Captain. Local market confidence was reflected in several multi-million dollar land deals, but is most evident in the residential sector as the median price of a Guam single family dwelling reached a new record high at $235,250, up 20 percent from a year earlier. The dramatic rise in median home prices, more than doubling since 2003, compares favorably to mainland markets which are suffering from historic declines. The change in product mix continues to impact the local median home price as a growing number of new houses are built and sold. Newer houses typically sell at prices higher than older houses, pushing median prices upward.
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Residential transaction activity during the 3rd quarter remained healthy with 191 houses sold. The high end of Guam’s housing market, which has been recently characterized by oversupply and limited demand, also staged a rally with seven houses selling at prices above $500,000 during the 3rd quarter. The 3rd quarter high end home sales included a recorded $852,000 sale at the nearly completed Talo Verde Estates, Guam’s premier residential subdivision. Many high end home sellers have adjusted their price expectations which has allowed for significant growth in the high-end sector. However, the supply of high end houses remains excessive with 47 listings priced above $500,000 in the Multiple Listing Service. The condominium sector, which is typically more sensitive to foreign investment, continued to spiral downward as the median price declined for the 4th consecutive quarter to $125,000. The 57 condominium units sold during the 3rd quarter reflected the lowest level of transaction activity in four years. However, condominium sales activity included the July 2008 sale of an upscale Tasi 17 unit to Clubs of Guam, Inc. at a recorded price of $1.0 million, a record non-beachfront condominium price for Guam. Real estate market conditions for land continue to slide as the weak economy, a moratorium on development and increased prices have combined to limit activity in this sector. Land sales volume has plummeted in 2008, down by 41 percent compared to 2007 figures. “The land sale rate of decline is, unfortunately, increasing. We expect the land sector to rebound when foreign investment returns, sometime after the moratorium on
development is lifted”, said Captain. The moratorium-impacted 3rd quarter land sale figures reflected a decline of 55 percent from 3rd quarter 2007 sales, a loss of $28 million. Based on the surprisingly strong 3rd quarter, Captain has revised their 2008 total sales volume projection to $375 million, up $25 million, but still down by 45 percent from 2007. Captain’s forecast for 2009 involves additional contraction. “Based on our analysis of sales activity trends and regional market conditions, we are projecting a 15 percent decline in aggregate sales volume for 2009”, stated Captain. Captain further added, “The market is moving in different directions. The residential market is characterized by strong consumer confidence which is evident in healthy transaction activity, significant new construction and record high median pricing. Fortunately, Guam banks are still lending and we haven’t experienced the liquidity issues which have put downward pressure on market conditions in the mainland. However, foreign investment in land and several proposed development projects appear to be temporarily sidelined.” “When the market softens, that creates opportunity. Although we don’t expect to see the heightened duress activity that was reflected during the 2000 to 2004 downturn, there will likely be a few bargains on the horizon. The window of opportunity may be short-lived because the fundamentals of the Guam real estate market will change once the military build-up plans are more established. By 2011, Guam real estate should be entrenched in a three to four year growth cycle”, Captain noted.
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By Janiece A. Sablan s 2008 has come to a close, we can look back at a year that was a rollercoaster ride for consumers. The year was riddled with ridiculous gas prices, skyrocketing real estate values, a subprime mortgage crisis, numerous big-name banks folding, stock market slumps, the auto industry dilemma and record low consumer confidence. Two thousand-nine is here and it seems the ride is not quite over yet but shows signs of stabilizing. Currently, gas prices are palatable and the local real estate market values remain stable. Also, as a direct result of the U.S. real estate market bubble bursting, the Federal Reserve has continued to decrease mortgage interest rates in order to counteract some of the damage and spur growth.
Set Clear Financial Goals With interest rates at a record low, this is an opportune time to consider your options. Finona explains, “Today’s rates allow potential homebuyers to purchase at a higher level.” Building or purchasing at current rates allow for more square footage or even room to invest in a variety of amenities. Finona has noticed, not only an increase in applicants for refinancing mortgage loans, but also an increase in construction loans. Borrowers
who may have been hesitant to build because of last year’s high costs to construct on Guam are taking advantage of declining interest rates as well as declining costs to construct. Should you take advantage of this opportunity? The answer most experts will give is, “It depends.” It is important to be clear about your financial goals and to research all of the options that might help you reach those goals. If your
According to Community First Federal Credit Union COO Mike Finona, “The rates have been dropping and the Feds have tried to put the perspective back into the market. The benefits to Guam would be the declining rates.” At the time of this writing, interest rates for a 30-year fixed-rate mortgage are 4.875 percent, the lowest since 1971. What does this mean for those who are contemplating buying, building or refinancing? 8 CasaGuam ◆ January 2009
Feature objective is to decrease your debt or shorten the term of your mortgage, refinancing the balance of your current mortgage with a lower interest rate or with a different term, say going from a 30-year fixed to a 15-year fixed-rate might be your answer. If your current mortgage is an Adjustable Rate Mortgage (ARM) and the interest rate is due to change, this could be a good time to refinance with a fixed-rate mortgage. With today’s rates and the instability of the economy, few people are choosing ARMs loans. According to the Mortgage Bankers Association, adjustable-rate mortgages accounted for only 1 in 125 loan applications last week. If your main objective is to consolidate debt such as credit cards with high interest rates or if you are in need of money for college tuition or a home renovation, you may be able to use your home equity to borrow money. You can choose to refinance with a new mortgage that is larger than your remaining balance (a cash-out refinance), get a home equity loan or a home equity line of credit. One of the most important things to consider if you currently hold a mortgage is whether or not there are prepayment penalties. It may be that the penalties along with points, fees and other costs related to the refinance, add up to more than the savings the borrower anticipates from the lower interest rate. Again, it is necessary to ask your loan officer questions and do your homework.
Don’t Miss the Boat Matt Cruz, Assistant Vice President of Business Development Management for Bank of Guam says, “This may be another opportunity for those who missed the boat” in reference to the last time interest rates were at a low in late 2005, when the benchmark rate was 5.97 percent for 30-year fixed-rate mortgages. Cruz states that in recent weeks, “I have seen borrowers reducing their interest rates by as much as three percent.” This equates to a sizable decrease in monthly payments and ample motivation to take on the process of refinancing. www.CasaGuam.com
“Unfortunately, because the interest rates are so volatile at this point— [borrowers] can’t expect to walk into a lending institution and expect to lock in at these rates,” says Finona. “Locking-in” to a specific interest rate generally occurs at the point of closing which means that there really are no guarantees that if you walked into a bank today and started the loan process, that three to four weeks from now, when you’ve reached the final stages of closing the loan, that the interest rates will still be as low. Borrowers can opt to lock-in at the time of application; however, as Finona explains, “we don’t have a crystal ball so we don’t know if rates will continue to drop or if they will go up.” He also points to the U.S. government’s change in administration as another factor in determining where the interest rates will go in the near future. Local lending institutions are already seeing increases in applications to refinance. CNNMoney.com recently ran an article entitled, “Refi madness: Falling interest rates are leading to a rush to get cheaper mortgages. Should you join in?” This article cited data from the Mortgage Bankers Association that mortgage loan applications were up “a whopping 48%” last week when 30-yr. fixed interest rate mortgages were at 5.08%. Most of these applicants were simply hoping to lower their monthly mortgage payments.
Home Equity Loan vs. Refinance Generally, there are two ways to use your home equity to borrow money. You can either refinance with a new mortgage that is larger than your remaining balance (a cash-out refinance) or get a home equity loan. Another popular refinancing option is changing the type of loan you have. Many people that have adjustable rate mortgages often refinance before their interest rate begins to adjust. Unless you’ve stumbled upon the proverbial “crystal ball” that many realtors and bankers wish they had, the smart move may simply be to jump while you can. Analyze your current financial portfolio and determine if you need to consolidate debt, improve your home, diversify investments or stay put. It will be different for everyone and many people are comfortable with where they are at, but at a minimum, you may want to at least consider looking at refinancing if you have a high interest rate or a second mortgage in order to lower your debt service in the long run. January 2009 ◆ CasaGuam 9
Feature MORTGAGE FAQs What is the difference between an interest rate and an APR rate? Your APR includes both your interest and any additional costs or prepaid finance charges you might pay such as prepaid interest, private mortgage insurance, closing fees, points, etc. It represents the total cost of credit on a yearly basis after all charges are taken into consideration. It is usually slightly higher than your interest rate because it includes these additional items.
What are “Points”? Points are prepaid interest on a mortgage loan. One point is equal to one percent of the amount of the mortgage loan. For example, if a loan is for $250,000, one point is equal to $2,500. (Note: Lower interest rates may involve higher points. If you plan to stay in your home for more than five years, opt to pay more points in order to lower
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the interest rate as much as you can. Paying points now will save you lots of money in the long term).
What Is a Lock-In? A lock-in, or rate commitment, is a lender’s promise to hold a certain interest rate and a certain number of points for you, usually for a specified period of time, while your loan application is processed. Additional points or fees will likely be added to the loan in order to lock-in an interest rate.
What is the difference between Adjustable Rate Mortgage vs. Fixed Rate Mortgage?
Interest Rate ARM: Is the same for a fixed period of time and then can change periodically. FRM: Interest rate stays the same throughout the life of the loan. Biggest Benefit ARM: Your initial interest rate is typically lower than a fixed rate mortgage, which may lower your monthly payment or allow you to afford a more expensive home. FRM: Your monthly payment of principal and interest stays the same, which makes it easier to manage your housing budget.
Monthly Payment ARM: Monthly payments are fixed for a period of time and then can adjust either up or down. FRM: Monthly payments of principal and interest stay the same throughout the life of the loan.
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From the Experts
Title Insurance and Escrow-Who Needs It? By Janiece A. Sablan
Bertha Evangelista President, Title Guaranty of Guam
uying a home is an exciting experience but it is not one without risk. Compare the transaction to the game of “Hot Potato” with the home being the very expensive potato. You wouldn’t want to drop it-not without insurance! That is why this smart guy named Benjamin Franklin created the concept of title insurance. A title and escrow company protects much more than just small potatoes. It protects one of the largest financial investments you’ll ever make. For first time home buyers, the terms “title insurance” and “escrow” may need some defining. Title insurance protects the purchaser or property owner against a loss that may arise by reason of defect in their ownership or the interest they have in real property for as long as they hold the title to the property. “Escrow” is the holding of money or documents by a neutral third party prior to closing. Title insurance generally falls into two categories: Lender’s Title Insurance and Owner’s Title Insurance. The Lender’s Policy is required by the Lender and the Owner’s Policy is optional. Of course, the best case scenario is for the Buyer to acquire both types of insurance for maximum coverage. Fortunately, title and escrow companies generally discount one or the other if a customer is
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purchasing both types. Escrow fees vary from company to company. Some use a sliding fee schedule while at least one company just applies a flat fee. The lending institution you are working with on your mortgage loan will supply you with a list of title companies to choose from. A federal law called the Real Estate Settlement Procedures Act (RESPA) entitles the individual homeowner to choose a title insurance company when purchasing or refinancing residential property. Of course you can just pick one as there are only a few on island. The conscientious Buyer would likely want to do a bit of homework before selecting a company. Ask around and find out who your family and friends recommend. The Buyer is responsible for paying for the Lender’s Policy, the Owner’s Policy if they opt to receive it, and the escrow fees. It makes sense to do a little shopping around. Fortunately, Guam only has three major title insurance and escrow companies, so there isn’t too much work involved. Find out what kinds of discounts they offer as well as special services that are included in fees as opposed to added on later such as notary fees. Companies may offer lower rates to Buyers who qualify for Guam Housing Corporation or Rural Development loans. Most importantly, you want to feel confident about the work of the title and escrow company you choose. You want to know that the company you select is going to do a thorough job researching the title for the property you are purchasing. What’s the big deal you ask? All property has changed hands at
one time or another. Sometimes many such changes have taken place. When you receive the title, you want it to be “free and clear”. If there are encumbrances, the title and escrow company will do its due diligence to find these defects through its research. As you sit in your lending institution trying to decide which company to use for your title and escrow needs, remember that you can be a proactive consumer and make a well-informed choice with just a little bit of homework.
In the news… Recently, Title Guaranty was appointed Business Agent for the top two Title Insurance companies in the United States, Fidelity National Title Insurance and Chicago Title Insurance Co. The company continues to utilize the services of Ticor Title Insurance company in addition to the two new underwriters. This allows Title Guaranty increased flexibility with fees, especially with larger purchase prices.
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Growing Up in Real Estate By Faye Varias
Siska S. Hutapea Partner, Vice-President & Chief Appraiser® Captain, Hutapea & Assoicates
iska Hutapea cannot remember a time when she didn’t want to be in the real estate appraising. “I grew up in the industry,” she says. Although she thought being an electrical engineer sounded cool and her mom inspired her to love teaching, Hutapea says, “My late father owned an appraisal company, [so for that reason, I always thought] I would be in this industry.” Hutapea is no rookie, holding almost two decades of experience under her belt. Since 1992, she engaged in real estate research, valuation and consulting and appraised residential, commercial, industrial and resort property throughout Indonesia. She also had a few stints lecturing on valuation-related subjects at Tarumanagara University in Jakarta in the late ‘90s and was a member of the Indonesian Society of Appraisers (ISA), instructor on basic valuation courses held by ISA in Jakarta, and one of the authors of the first book
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on property management in Indonesia. As if that wasn’t enough to fill her resume, in 1999, she joined The Captain Company as a real estate appraiser and consultant and worked her way up to partner, vice-president and chief appraiser for Captain, Hutapea & Associates. “I love my job,” she says. She says her biggest accomplishment was being able to obtain her MAI designation, the highest in real estate appraisal, while taking care of her family of six as well as handling a full time job. “It was a long process to comply with the three main requirements.” She says she completed each of her requirements while pregnant and on leave with her second, third and fourth children. It helps too to have great partners, husband Edward and business partner Nick Captain. When not reviewing real estate transactions, Hutapea finds time to volunteer for several community organizations. She is currently President of Soroptimist International of the Marianas. “It’s a great group of professionals working to make a difference for women.” Hutapea says. She is also a council member for the Lutheran Church of Guam and chairman of the board for Tender Shepherd Preschool and daycare. Yet, she always finds time to spend days at the beach with her husband and their four children, and sometimes, even travel off-island for family reunions. “With four children, I have to set my priorities. My father taught [my sisters and I] to be the best that we can and the sky is the limit. He was very proud of us, his daughters, and gave us two things that a person would need in this world, strong education and faith in God.”
Siska S. Hutapea Partner, Vice-President & Chief Appraiser Captain, Hutapea & Assoicates Family: Husband, Edward Hutapea; children: Faith, Grace, Timothy, and Christian Education: Bachelor’s in civil engineering from Trisakti University, Jakarta, Indonesia; master’s in real estate from the University of New South Wales in Sydney, Australia Biggest Accomplishment: Receiving her MAI designation, the highest in commercial real estate appraisal, awarded by the Appraisal Institute in Chicago in June 2007 Biggest Life Lesson: “All things are possible with God.” ~Luke 1:37
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Who Ya’ Gonna Call
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Who Ya’ Gonna Call
Tel: (671) 477-7147 • 477-8618 • 477-2330 • Fax: 477-1071 Title Guaranty Bldg., Suite 320 Hernan Cortez Ave. Hagatna, Guam - next to Julale Shopping Center. www.CasaGuam.com
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Classified Residential Sales
Land For Lease
Commercial Building 7361 sqft M-1 Marine Drive Frontage, renovated, rent and sub-lease ok, 30+ parking stalls easy access Call TONI –482-4663 MLS 08-3615
4br 2ba/2br 1ba duplex. All ceramic tiles, high ceilings, newly painted, excellent condition, 2 car carport, sidewalk around house, split a/c. $250k/neg Call Jackie 777-4289
Chalan Pago Flora Pago Condominium for Sale, 2 bed, 2 bath, Excellent Condition. $180,000.00 Call Waylen 727-3517
Mangilao Apartment for Rent: 136 Corten Lane, $750 Per Month Fully Furnished, Close to GCC and UOG. Perfect for a single or couple. MLS 08-4239 Call Deanna 688-2855
3BDR/2.5ba. Great location! Behind Central Medical! UPGRADED! A newly renovated home! A must see $260,000 OBO Call DORI –727-7188
3Bdr/2ba 2-storey house concrete fenced! Great location Near the Mayor’s office! $1,700/month OBO Call DORI 727-7188
Mangilao Latte Heights – 4bdrm/2ba. Beautiful newly renovated home with jacuzzi tub, new appliances and so much more! Income generating $2200/month. $300,00 Call DORI –727-7188
Tamuning Dai Ichi Condo 3bdrm/1ba. Check out this 3rd floor unit Owner Financing OK! $135,000 Call DORI –727-7188
Windward Hills 4br/2ba w/family room, new kitchen cabinets; plus newly renovated detached 1br/1ba guest quarters 1656sm lot. $259k/neg Call Jackie 777-4289
Yigo Carl Guttierez St. 4bdrm/2ba – Fully fenced! With French windows! Income generating $1710/month. Close to Andersen. Investor’s Delight ! $268,000 . Call DORI – 727-7188
Rental Properties Dededo 3BDR/2.5ba. Great location! Behind Central Medical! UPGRADED! A newly renovated home! A must see $1700 /month Call DORI –727-7188
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Talofofo Single Family Home 3br/2.75 bath 2 story $2,200 Per Month 301 Paulino Heights, Ipan, Talofofo MLS 08-3674 Call Deanna 688-2855
Tamuning 3BR / 2.5 BA $1,700/ month, pool 24/7 security. Call NILISA 482-5551/727-3335/477-3335
Tumon Lily Village Condo, Old San Vitores Road $1,800 Month Within walking distance of Pleasure Island and the beaches of Tumon. MLS 08-2683 Call Deanna 688-2855
Yigo 3 bedroom, 2 bath, Excellent condition with generator. $1,900.00 But very Negotiable. Call Waylen 727-3517 3BR/ 2BA $1700/month, fenced garage. Call NILISA 482-5551/727-3335/477-3335 Single Family Home $1,700 Per Month 106 M.A. Calvo Street, Yigo Great home conveniently located close to AAFB. MLS 08-3347 Call Deanna 688-2855 3br 2ba fenced home in excellent condition. 7mins. to AAFB front gate. Ceramic tiles, split a/cs, stv, ref, mstr walkin closet, indoor laundry hookup, shutters, storage container. $1900 Call Jackie 777-4289
5098 sqmtr Marine Corps Drive, Adelup, Beach Front$3,000/month present offers short/term lease Call TONI 482-4663 MLS 08-2681
Land For Sale Dededo 2104 +/-sm Great location! Road frontage! Close to Bello Market! $150,000 Call DORI – 727-7188
Piti 5863 +/-sm. R-1 land fronting Marine Drive Great property to own. Close to Fish Eye! Great Investment! Lots of potential! Beach just across. $650,000 Call DORI – 727-7188
Mangilao 1007 sqmtrs R-2 Kotpus Dr., access at front/back of lot. Owner financing. $75K. Call CATHI 687-3492 MLS-08-3246 3-Lots each @ 1562 sqmtr R-1 Utilities Close. Eba Road. Owner Finance. $80K each. Call CATHI 689-3492
Talofofo 1007 sqmtr corner lot R-1, Chalan Mata & Aridondon Mate. $70K. Call JOE 482-2944/472-5551 MLS 08-2370
Tumon 8645 sqmtr R-2 Zone near Pia Marine, across driving range $1.3M. Call CATHI 689-3492
Merizo 3-Lots, each @ 920 sqmtrs. Old Quinene Rd. Owner financing $47.5K each. Call CATHI 689-3492
Yona 140,854 sqmtrs as 150 Manibusan St. A-zone Pulantat $7.1M Call CATHI 689- 3492 MLS 08-3214
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Closing Message from the Executive Officer The Voice for Real Estate on Guam
Why Use a REALTOR®? All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS®. They proudly display the REALTOR "®" logo on the business card or other marketing and sales literature. REALTORS® are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict CODE of ETHICS and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®. But if you're still not convinced of the value of a REALTOR®, here are a dozen more reasons to use one: 1. Your REALTOR® can help you determine your buying power–that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders–banks and mortgage companies–offer limited choices. 2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties. 3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell? 4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required. 5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and roperty, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports.
28 CasaGuam ◆ January 2009
Peggy Araullo Llagas
You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date. 6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders. 7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly. 8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle. 9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethics requires REALTORS® to utilize these cooperative relationships when they benefit their clients. 10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property. 11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing–a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process. 12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement). www.CasaGuam.com