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Residents of Hawai‘i are dealing with the rising costs of housing.

april 2016

Volume 8 Issue 9

5

5 feature topic We consulted with four experts

on different aspects of the housing crisis.

8 Scott larimer Gay Home Buyers:

Knowing When to Go Stealth

14 joe pineda

8

14

20

26

Location, Location, Location

20 Patrick Graham

All In the Family

26 raymond kang A Seller’s Market

eXpression808.com to

and have our current issue mailed to you

c over

featur e

By : mickey weems PHOTO BY : released

the crunch Residents of Hawai‘i are dealing with the rising costs of housing. Demand has driven rental and purchase prices higher, especially in Honolulu. Part of the rise is due to out-ofstate investors, which accounts for at least 25 percent of the market on O‘ahu and 50 percent on other islands. Another related factor is limited inventory. On the North Shore, vacation rentals have driven up long-term rentals and put a strain on housing availability. In Honolulu, attempts to ease the housing strain include more apartment buildings (with a portion of the new units set aside at more reasonable prices) and encouraging homeowners to build additions to existing homes as rentals. Homes in Kapolei, Kalihi, Ewa, and Wai‘anae side are less expensive than in town, but in Nu‘uanu just mauka of Chinatown and the Business District, it is not unusual to see a so-so house go for $800,000. The same is true for Manoa and much of East O‘ahu. The Kaka‘ako skyline continues to be dominated by cranes, new high-rises, and the promise of housing for the middle class as well as the wealthy,

but demand is so great for available space that a lottery will determine the lucky few commoners who will live in the same buildings as the affluent. Airbnb.com, a site that allows people to rent out a room or a second home to tourists, has taken money away from hotels, hurting the hospitality industry in places like Waikiki and Ka‘anapali. At the same time, the often underground business fostered by Airbnb and Craigslist keep those rental spaces and homes off the market for locals, thus further aggravating the crunch. For some areas such as Kailua, Lanikai, and North Shore, some neighborhoods are dealing with services issues and increased traffic due to a higher population than the area was intended to handle, even though a significant number of those people are only there for a short time. On Kaua‘i, the price of housing a family in a three to four bedroom unit has outpaced smaller homes, and 70 percent of condos and 12 percent of single family homes have out-of-state owners. The price of a condo in Kaua‘i is, in fact, second highest in the state.

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O‘ahu leads the pack. The present housing crunch was not always so. In 2008, the market fell with the Great Recession and many realtors left the business for greener pastures. The current boom will bust as well. In the meantime, those of us who are looking to buy or sell a home still have options for finding a good deal, situating ourselves in a good neighborhood, and getting a decent price if we are selling. Some of us may even consider employment as a realtor. But it is important to be informed before committing to such an important thing as a home or a career change.

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In this issue of eXpression!, we consulted with four real estate agents on different aspects of the housing crisis. Scott Larimer discussed issues for buyers, especially those of us who are LGBT. Joe Pineda talked about the importance of where one buys, determining if a desired property is in a suitable neighborhood, or if that dream house is worth a longer commute. Patrick Graham had advice for anyone wanting to get into the business of real estate, and what it’s like to be a member of a motherson realtor team. Raymond Kang looked at opportunities for those who want to put property on the market.

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What is particularly interesting about these four is that none of them were born here – Kang is from Singapore, Pineda is from California, Larimer is from Illinois, and Graham was born in Taiwan. But all four of them expressed a great love for the islands. All the work they put into vewing properties has made them familiar with their new home. Real estate gives them a ground-level understanding of O‘ahu that they would not have gotten in any other occupation. The four agents emphasized above all the importance of having a good relationship with their clients. Not one of them talked about profits unless the question was put to them

directly – for them, professionalism was the goal, not bling. Another thing they had in common were great communication skills and a sunny disposition – living on an island where people know each other’s business makes one’s reputation as a professional and a congenial person the coin of the realm. The ability to put people at ease is no doubt an important prerequisite to success in their line of work. And if there is any venture in which people need to be put at ease, it is the high-flying, volatile, and confusing Hawai‘i real estate market.

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Scott Larimer 8 | ap r 2016 - E X P R E SSION808.C OM

By :

mickey weems photos : jtl

gay home buyers:

Knowing When to Go Stealth Many people get queasy when confronted with all the challenges of finding a new home. The process is a maze, a twisted journey through myriad options, prerequisites, and risks that come with renting or buying. Two main questions arise for the seeker: What could I afford? What would I settle for? The second question involves so many things – square footage, neighborhood, view, parking, commute distance. For the first question, the quest can be especially troubling in 2016, when it is a seller’s market overall. And it is also a landlord’s market when it comes to renting, which makes the value of a house go up in price. “As rental rates increase, there is a direct correlation to the values in home sales,” said realtor Scott Larimer. “We’re seeing a significant increase in rental rates over the past few years, which means an investor can realize a stronger return

on investment. These investors create added competition to first-time home buyers and in turn drives prices up.” For those of us in a position to sell, this is good news. But what about those of us looking to buy? When we spoke of the fears that buyers have, Larimer was upbeat. He believed that an informed buyer can make the purchase of a new home a good experience instead of a source of anxiety. “As an agent, I do my best to identify the potential issues that may arise to manage my clients’ expectations,” he said. “I build the potential scenarios so they understand their options and are prepared. It’s much less scary for a buyer or seller when they clearly understand the process and options available to them.” Part of the process for LGBT people, he said, includes

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knowing what protections are in place to eliminate the possibility of discrimination. “I have a general sense of my LGBT clients and what we have gone through as a community, and I still take the possibility of bias into account whenever I present my clients to a potential seller.”

Weathering the Storm While in Champaign, Larimer was active in supporting the community. “The sense of community in Hawai‘i is similar to what I had in Illinois. This made it easier for me to move here.” The housing market at the time, however, made it tough. “I made my decision to move from Illinois to Hawai‘i the end of 2007,” he said. “As my date of arrival came closer, the financial crisis started to unfold,” which came to a head in October 2008 with the crash of the stock market and the beginning of the Great Recession. “I arrived on the heels of the 2008 mortgage crisis and anticipated a challenge. My mentor at the time said that starting as a new agent at a time like this had benefits if you could weather the storm.” Since we are currently experiencing an upsurge in prices for rentals and purchases, there is a concurrent increase in realtors wanting a piece of the pie. So when Larimer became a realtor, there was less competition. “The economic downturn meant many agents were leaving the market as they couldn’t provide for their family. I saw the opportunity in this scenario and decided it would be like going back to school. Times would be lean, and

I would have to dedicate this time to learning everything I could about the Hawai‘i real estate market to be prepared when the market started to turn around.” Larimer made up his mind to be a realtor when he moved to the islands, and he did not half-step. “I was a fulltime agent only, no part-time jobs as a waiter or bartender. Uber didn’t yet exist. I’d take this time of deteriorated economy and low market activity to educate myself. I learned from the agents that were able to realize success. I studied everything I could about the various neighborhoods, and I met as many potential clients as possible, even if they weren’t ready to buy.” All of his hard work bore fruit, sometimes years later. “As a result, I’ve had several sales in the past few years that were client relationships established seven or eight years ago.”

Lucky We Live Hawai‘i! But Hedge Your Bets When it comes to housing, it is against the law in Hawai‘i to discriminate on the basis of orientation or gender identity. Only 20 states in the U.S.A. have passed such legislation, including Larimer’s former home state Illinois, so we are fortunate to be living in one of them. The multicultural and multireligious fabric of Hawai‘i society creates a sense of tolerance and even appreciation of difference. Add to that the reality with living on an island where there is a good chance we could run into people we have helped or harmed, and we have forged a “Live and Let Live” attitude towards our neighbors.

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This is not to say, however, that homophobia does not exist. States across the nation are finding ways to legalize discrimination in the name of religious freedom. Mormon leadership has recently turned against LGBT families within their congregations by turning against the children in those families. Pope Francis is still tap-dancing around orientation and gender identity, and the Episcopal Church is on the verge of leaving the Church of England over LGBT rights. It would be unrealistic to think that those problems that plague gay and transgender people on the mainland are not transplanted in the islands. If discrimination becomes a concern, both sides have something to lose. No buyers want to be denied a place because of who they are, and no sellers want to open up the possibility of legal action against them for perceived bias. Such a situation adds stress for everyone involved, and Larimer is all about making a real estate transaction as smooth as possible.

Stealth Mode When asked about the laws protecting LGBT clientele, Larimer positioned the realtor as the one who prevents the problem in the first place. “It is indeed against the law to discriminate in Hawai‘i based on familial status or sexual orientation among other protected classes, but I also realize that while a buyer or seller may not outwardly verbalize an intention to discriminate, it could be a factor.” In keeping discrimination from becoming an issue, Larimer protects clients on both sides of a transaction. “I’m always concerned about presenting my clients in the best way possible, be it buyer or seller. While real

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estate is a highly personal and emotional experience, it is also a business transaction. It’s important that all parties involved take the transaction seriously, and I would not want any of my clients to ever be accused of any type of discrimination. I have many LGBT clients as well as straight, and I do take into consideration and have discussions with my clients regarding how we might present an LGBT couple or family as buyers.” Larimer talks to his LGBT clients who want to purchase a home about what can be done to prevent discrimination, including taking precautions as not to reveal too much about one’s personal life. “When presenting a home or submitting offers, it often means my clients may become aware of the other party’s sexual orientation. But in most cases, unless I know the clients are fully comfortable and specifically want it brought up, I use the utmost discretion.” One solution is to focus on more relevant information than orientation. “I do my best to prevent this topic from being an issue in the transaction. I describe my clients in terms of the merits of their personal character, professional career, perhaps achievements and contributions to the community, fiscal responsibility and dedication to the transaction.” So does Larimer have clues he looks for that could signal a possible bias, and has he developed specific strategies for protecting his clients from discrimination? “I do have certain things I watch out for, and I have come up with ways of presenting my clients that protect them.” Then he added with a smile, “But those are trade secrets.”

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Joe Pineda

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chai By :

mickey weems photos : jtl

Location, Location, Location Imagine a beautiful beachfront house in La‘ie. The price is good, real good, in fact. Everything about it is a dream, except for where it is. There is only one way into or out of La‘ie. If a commute to town is unavoidable five days a week, then time on the road can be anywhere from 45 minutes to an hour and a half, depending on road work, rush hour, or whether the truck ahead is going 15 miles an hour. In order to miss the morning rush, it may be necessary to leave at sunrise or earlier, and because traffic is just as bad at the end of the day, it is not unusual to return home at 8 p.m. Even though the property is a dream, time spent in that little slice of heaven will be restricted because of the commute. La‘ie is not exactly party central – going out to Chinatown or Waikiki means another long commute. That is one major reason that more than one such property there has such a good price.

Joe Pineda brought up the La‘ie beachfront house to make a point. “I always get asked, ‘How’s the market, Joe?’ My response: ‘Where do you live, and are you thinking of buying or selling?’ I never make blanket statements as each neighborhood or building perform differently from each other. Because of demand, the beautiful La’ie beachfront listing for $1.5 million will be on the market longer, while a fixer-upper $1.7 million listing in Pacific Heights will receive multiple offers the first week and sell at over-asking price.” The difference between La‘ie and Pacific Heights is the classic real estate maxim: Location, Location, Location. “When buying a place – whether it is a single-family home or a condominium unit – it is always important to consider the neighborhood,” said Pineda. “Buyers will tend to focus on the actual property only. If this will be your home, then you need to like the neighborhood you will be in as well, in addition to the actual house or unit. For those who like to take walks, use public

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transportation, explore the area, walk the dog – they need to like the neighborhood almost as much as the actual property they are purchasing.”

Relocation Born in Los Angeles, Pineda never imagined he would end up in Hawai‘i. It was love that inspired him to make his home here. But he was already connected to the ‘aina and culture, even before he met his husband; Pineda danced hula in Patrick Makuakane’s halau while living in San Francisco. “I met my husband, Tom Merrick, in 2001 when I came to Hawai‘i with my halau,” he said. “I was still living in San Francisco then and our halau would come to the islands every other year to perform at the Hawai‘i Theatre. That year, our flight to Honolulu had a six-hour delay. Despite being exhausted, the halau boys decided to shake that bad energy off, so we decided to go out for a drink. I met Tom at a bar that night in Fusion.” The world shifted for the two of them that night: “It was definitely love at first sight. We knew right away that there was something special. In the beginning, there was hesitance on our part because I lived in California and he lived here in Hawai‘i. How can we make a long distance relationship work? But I shook that thought off – there was no way I was going to let distance be an obstacle. If the one guy that is meant for me is thousands of miles away, then dangit, I will make it work! Three months later, Tom moved with me to Glendale, California.” The problem with Glendale, however, was the super-long commute to Hawai‘i. “As much as I liked living in Southern California, Tom looked like a fish out of water with all

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that ‘concrete jungle,’ as he put it. It was even more obvious whenever we went to Hawai‘i for a visit. I would see him blossom the week we were here. Eventually, I knew that I had to bring him back to Hawai‘i despite my fear of getting rock fever.” Sometimes in love, it’s all about location, even when the neighborhood is in a city on an island half an ocean away. He and Merrick moved to Honolulu in October 2007. “I’ve grown to absolutely love Hawai‘i, and I can’t imagine living anywhere else. As a realtor, it is easy to sell something you love. More importantly, Tom is back home and he is happy.” But the move was not easy: “As a realtor, leaving an established client base behind and starting brand new in another state is tough. Additionally, with over 6,500 real estate agents in a state with an estimated resident population of only 1.2 million people, everyone already knew about seven or eight agents. It was a tough start. Even the people we knew were hesitant to put their property in the hands of an agent who just moved to Hawai‘i. I was lucky enough to have one or two friends give me a shot and by putting myself out there in the public.” The love between Pineda and Merrick eventually inspired them to tie the knot. “Because we felt so in love with each other, we didn’t feel the need to get married. We went to the rallies for marriage equality. But back then, we were thinking that a piece of paper was not going to make us love each other more. Then one day in February 2014, while we were on vacation in the island of Lana‘i, we woke up, looked at each other, and declared we should get married. Our best friends were travelling with us and they served as our best-men. With the help of the Four Seasons Koele Lodge, we got

cocoa

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married within 24 hours. It was such a magical moment.” And the magic is still there: “I still get all giddy when I see ‘husband and husband’ after our names on the title when we buy property.”

When the Stars Align... When the property and neighborhood come together, it is like a rare astral event. Pineda advises not getting hung up too much on shaving off a few grand if everything about a place is otherwise perfect. “It’s always nice to get something for less than what it is worth. But when you’re competing for a property, squabbling over $5,000 or $10,000 may result in another buyer ending up with the home of your dreams. By the time you calculate that difference in your loan, are you really willing to lose that property you like for a price of an overpriced hamburger a month?” The importance of neighborhood also changes for those who do not intend to use the property for themselves at all. “As for my investor-clients, they personally don’t need to like the neighborhood. I have investor-clients who have bought and sold properties without once seeing that property with their very own eyes. All they care about is the fact that it will bring in a positive cash flow and will be easy to rent.”

What Realtors Should and Should Not Do Pineda prides himself in not being a certain kind of realty agent. “I’ve known a lot of real-

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tors, even prior to becoming one. Seeing how they conducted their business made me realize the type of realtor I want to be,” which meant first of all, play nice with other realtors. “I remember meeting another realtor at a gay bar my first week here in Waikiki. When he found out that I was also a realtor, he proclaimed that everyone in the bar was his. Real estate does not work like that.” Pineda believes in putting his client’s best interest over the desire for a quick buck. “I always thought of my business as being in customer service instead of in sales. Realtors should be client-focused instead of property-focused. I should be able to service all their real estate needs, whether it is selling their $63,000 leasehold property or their multi-million dollar home in Pacific Heights. Treat your clients right and do not focus on what you’ll get in return.” Putting client over sales can have positive consequences for Pineda because reputation is everything. “I love my clients and I love my job. I am not one of those agents who automatically want to list or sell someone’s property. When I consult with a potential seller, selling their property is not the only option. Sometimes it is best for the owner to rent the property first and then sell later when the market is better for them. Sure, many will wonder why since I will not get paid if I don’t sell it. I determine what is best for them, not what is best for me. Just like a doctor, a surgery should be done only when it is necessary... and not because a doctor wants to get more money whether a surgery is needed or not.”

Rick Gutierrez Loan Officer

NMLS# 442563 | Branch# 389672 4211 Waialae Ave., Suite 107 Honolulu, HI 96816 Rick.Gutierrez@prospectmtg.com www.myprospectmortgage.com/RGutierrez cell 808.728.7575 fax 877.878.8513

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Patrick Graham 20 | a p r 2016 - E X P R E SSION808.C OM

By :

mickey weems photos : jtl

All in the Family So you want to be a realtor. The housing market is cranking. You know somebody in the business who walked into the local gay bar last week, waving around C-notes like a rainbow-glitter Wall Street gangsta. How hard can it be to sell a house, especially now? With 14 years in the business, Patrick Graham knows what it’s like to be that $100 bills-waving girlfriend: he jumped into real estate during a housing boom. But as surely as the sun sets over Ni‘ihau, the current boom will come to an end. Graham believes the next crash will be gentler than the last one in 2008, but the crash will come to pass. “It was so crazy when I first got in,” he remembered. “Things were selling so fast and everyone was making lots of money. Things looked good. But when the market crashed, it was doom and gloom. I went from making a lot of money to almost nothing. Everyone was getting

out of the business, and people were so negative. I almost got out of the business too.” Graham may have been down and out, but he had a secret weapon: a mom who is a seasoned real estate pro.

Team Graham Graham was born in Taipei and then adopted by white parents, as was his sister who was born in Korea. Today, his mother, Joan Graham is a vice president of the real estate giant Coldwell Banker. The two of them work in the same office. “She taught me everything I know,” he said. “We bounce ideas off of each other. I get my confidence from her.” In some ways, they could not be more different. Joan was raised in conservative Tulsa, Oklahoma, and Patrick grew up in progressive Hawai‘i. She is straight

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Caucasian and he is “Gaysian.” She is a decent dresser and he is fabulous. Before we met, Graham texted me and asked if I would be doing a photo shoot as well. I told him no, so he said that he would not be dressing up for the interview. I half expected him to show up in a T-shirt and sweats. His idea of “not dressing up,” however, was to wear a smart blue and white cotton plaid shirt (long sleeve and button down), navy blue slacks with a sharp crease, solid black tie, and black Vans slipons with multicolored California bears on them. Taking off his shoes at the door, his striped blue socks ruled the runway for the duration of the interview. The overall effect was fashion-forward, business appropriate with an edge (those Vans and socks were tastefully rebellious), and fun. Real estate is a high-stakes business, and most realtors I’ve met dress well. But Graham took his look to the next level. I asked him if he thought his clothing choices make him stand out. “I think my fashion sense certainly sets me apart from the competition. It has increased my business,” he said. “I get compliments almost every day from colleagues and clients about how I dress. I think it makes me look professional and my mom loves it. She’s super proud of me.” And Patrick is devoted to Joan. “My mom is my best friend. I love working side by side with her every day. We have a good working relationship – where I lack, she excels, and vice versa. If I can’t be somewhere, she can cover for me and I do the same. We communicate by asking, ‘How’s your day looking?’ Then we work around

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each other’s schedule. But we have our ups and downs. Working with family is sometimes frustrating – after all, she is my mother. Sometimes it’s hard because you can take advantage of the other person without knowing it. A lot of teams in real estate come and go because they lack the respect and communication that we have.”

The G Factor Due in large part to his provocative fashion sensibilities, a casual observer would conclude that Graham is either gay or metrosexual. We would hope that such an impression makes little difference, but in the real world, we know that it can be a deal breaker for some people. Overall, Graham is aware of the risk: “Being a gay realtor has helped me over the years, but it can hurt me if my client isn’t comfortable having a gay realtor. Most of my clients treat me very well because of the service that I provide, my market knowledge, and my go-get-’em attitude towards their home.” As a gay member in the industry, Graham has had only positive experiences with other gay realtors. “Gay realtors treat other gay realtors like family. We always watch out for each other and try to give the inside scoops on a hot new listing before it hits the market to another ‘family’ member.”

All About Realtors: No Floozie Agents Thanks to his mother, hard work, and his own fierce fashion sensibilities, Graham has survived in the up-and-down world of real estate – in style. Others are not so

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lucky: “More than 50 percent of realtors fail by the first year,” he observed. “75 percent by the second year.” With such a brutal atrophy rate, one might think twice about jumping in feet first. Graham had some advice for those who want to try their hand at it: “I would tell them to work very hard and lay the groundwork for the next two to three years. Get your database in order. Let everyone you know that you are now selling real estate, including friends and family. Keep your eyes open and your ears to the ground. Look for keywords like ‘Oh, I might be moving.’ I would also tell someone getting into the business to have money in the bank to survive six months or more because sometimes it takes a while before you get your first sale.” He recommended that the aspiring realtor be careful about what they say about other realtors. “Don’t be a floozie agent,” he warned. “So, no talk stink?” I asked him. Graham laughed and said yes – it will come back and bite them later. “Your reputation is everything.” And he advised caution about being a dual agent, that is, acting on behalf of both the buyer and the seller. Although not impossible and potentially rewarding, “Dual agency can be the Devil,” he said, if one side believes you favor the other.

Ups and Downs He did not want to be too discouraging, but Graham wanted to make it clear that real estate is not all sunshine and roses. “It’s a fun business and very rewarding, but there are peaks and valleys. The highs are very high and the lows are very low. You definitely

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have to be thick-skinned because you do get rejected a lot. You have good days and bad days. A good day would be when you get a contract accepted, sign a buyer at closing, give keys to a new homeowner, or get a commission check. A bad day would be if you just found out a friend you know used another realtor, or a client yells at you and says, ‘You’re not working hard for me!’ And it’s bad if something on the property goes wrong, such as a listing you have springs a leak just before closing.” New realtors must be able to make themselves visible. “When you are in this business, the rewards are so great because the potential to make really good money is there. But the downside is that the business is very competitive. You have to be the one that stands out by providing the best service. Mean what you say, and do what you say that you are going to do, no matter how big or small. There is always a younger and smarter realtor around the corner who is looking to take your spot.” Graham also made some observations about realtors in general. “There is a large gay representation, but no transgender people that I know of.” He said there are, however, plenty of middle-aged straight women. “I think real estate is a woman-dominated industry because women are nurturing and comforting. Women tend to be more honest and trustworthy. Real estate is also a second-career type of industry for a retired school teacher or for a corporate secretary that is too young to retire, but still needs work.” And apparently, it is the perfect business for a middle-aged woman from Tulsa and her sharp-dressed son.

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Raymond Kang

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mickey weems photos : jtl

A Seller’s Market Raymond Kang is completely at home here in Hawai’i, perhaps due to his upbringing in Singapore, a small island city-state right on the equator at the southern tip of the Malaysian Peninsula that is known for being modern, clean, and safe. Like Hawai‘i, Singapore is multicultural, but the mix is different: Malay (predominantly Muslim), Chinese (Buddhist, Daoist, and Christian), Indian (predominantly Hindu), and Eurasian (you name it). Just over 70 percent of Singaporeans are Chinese. Singapore has Honolulu beat in terms of architecture. It is not as advanced in terms of LGBT rights – although it has come a long way in the last two decades. But homophobia did not motivate Kang to move here. “I wanted to see more of the world,” he said. The shift to Hawai‘i was not so difficult – English is the main language in both places, which made getting Kang’s bachelor’s degree and master’s at the Hawai‘i Pacific University easier. His family is Chinese, but Kang made it clear that he was Singaporean Chinese. “We are different from other Chinese communities,” he stated, and he is as proud of his original home, as he is glad to be in Hawai‘i. Kang was a realtor in Singapore and has been in the business here in Hawai‘i for the last six years. “When I started here in 2010, the housing market was still recovering from the crash in 2008,” he said, and he felt it was good to start during a slump. “Times were still tough, so I’ve seen the good and bad of the market here. Right now, it’s very good.” We consulted with Kang about what things a seller should know while the market is so robust.

Spring Forward, Fall Back “In general, it’s a seller’s market, and now is a good time to put a property up for sale – the best seasons

for home sales are spring and summer,” said Kang. Just like Daylight Savings Time, I said, which is a foreign concept in both Singapore and Hawai‘i – Kang was amused by the comparison. “But keep in mind,” he cautioned,” that not every neighborhood or property is going to have the same rate of success.” A home in Kapolei, for example, would not typically cost as much as a comparable home in Hawai‘i Kai due to a host of factors, which includes the commute to town. From Kapolei, the sun can be glaring for both the trip to work in the morning and the trip home in the afternoon. So far as orientation is concerned, Kang had good news. “There appears to be no stigma against LGBT sellers.” In fact, being an LGBT seller may actually be a good thing – if we own the property, it may be considered more valuable than if owned by a straight person because we supposedly have a higher level of appreciation for good things, and we do not have a reputation for trashing a place. LGBT reputation aside, Kang also had words of caution for the firsttime buyer, who most likely will someday become the seller of the same property: “Keep in mind that, even if you do not want to sell the first property you’ve ever bought right now, you probably will at a future date. Your first house will most likely not be your last. Make sure it will also be a good sell.” He counsels sellers to prepare before putting a property on the market. “First impressions count. Find a place to stay, with relatives if you can. If you are thinking about selling your place, begin immediately to declutter and depersonalize it,” he recommended. Some people want to buy property and then rent it out. But they should be ready for the occasionally adversarial relationship some landlords have with their renters. In addition, there is always the possibility that the property might not rent quickly. “Keep in mind that the market can change, and you might not find a renter for

EXPR ESSION808.COM - a p r 2016 | 27

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a period of time,� Kang said. Bottom line, the renter or seller may need to use the property for personal use to save on bills. “You must be ready to live in that property if the market falls.�

Clicking With the Right Realtor: Relatives and Dual Agency Kang could not emphasize enough that sellers should have a good relationship with their realty agents. “Choose a realtor that you are comfortable with, and don’t depend only on first impressions. Google them and ask for references. Most realtors are not shady. But it is very important that you click with the one who represents you.� A good realtor should be a trusted counselor, one that is easy to talk with, and not just a hired hand. With the real estate boom, more people are getting their real estate license. There is a chance that a family member may be in the business, and a realtor relative might have hurt feelings if somebody else is chosen. On the other hand, involving family as a realtor could become a big nightmare if that relative is not perceived as working hard enough or criticized for charging too much. Kang advised caution. “Using a close family member as your realtor could potentially be a problem,� he warned. “If you find that your realtor is not living up to your expectations and you want to find another, it’s much easier if you don’t see them during family reunions.� It is not against the law for a real estate agent to work for both the buyer and the seller of the same property. This is called “dual agency� and must be disclosed by law. The advantage to this is the chance a deal might be reached in a short time. But Kang does not recommend going that route. Also, make sure the realtor pays attention to every detail. “When a deal is made, you should be presented with a well-written contract, detailed with a clear time frame and legitimate lending officer who will carry escrow [a document kept in

1.9

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the custody of a third party, taking effect only when a specified condition has been fulfilled to finish].�

Selling Without a Realtor: Watch Out for Con Artists Some sellers would rather not have a realtor involved in the deal. “That’s fine,� said Kang, “But not if you are a first-time buyer or seller.� Besides the benefit of having someone who is familiar with the myriad details that must be covered in order to not end up in a financial mud pit, Kang talked about the chances of getting hit by rip-off artists. “Watch out for frauds on sites such as Craigslist. And be very careful about your personal information getting into the wrong hands. Your ownership of a property is on public record. From there, a con artist might steal your mail to get more information on you. If you decide not to use a realtor, make sure you are not on vacation, and keep an eye on your mailbox.� Let’s say the seller wants to use a realtor, but balks at how much money will come off the sale and into the realtor’s pocket. In general, 6 percent of the sale goes to realty fees. For those who decide that 6 percent is too high, Kang pointed out that the seller’s realtor does not get the full six percent. It is split between the buyer’s and seller’s realtors, and there is a further split between the realtor and the realtor’s company. Besides, there is also the quality of the service. “You get what you pay for. Flat rate service agents of various types are salary based. They do not have the same incentives to take care of the seller. It would be to the best interest of the client to go for a full service realtor rather than a discount brokerage firm that charges less. As I said earlier, do your homework and find a good agent that suits you. Getting a realtor is like buying a pair of shoes – it’s worth it to pay more in the long run.� And just like shoes, the realtor should be a comfortable fit.

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Entire contents copyrighted 2008–2016 eXpression! Magazine is a registered trademark. All rights reserved. eXpression! Magazine is published monthly in Hawai‘i and welcomes manuscripts, original works and various forms of expression for publication. eXpression! Magazine reserves publication rights to submitted materials. eXpression! Magazine assumes no responsibility for unsolicited materials unless otherwise pre-agreed in writing. eXpression! Magazine does not take any financial or libel obligation to the contents of its columnists and advertisers. All materials submitted are consent to be original. All views and opinions are those of the writer and bear no implications on the opinions of eXpression! Magazine. Registered trademarks used within are hereby acknowledged, images and contents released and permitted. No implication regarding sexual orientation or preference is made in connection with any persons, contributors, and/or advertisers appearing in this publication.

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