During the last five(5) years as a Realtor(S), in Maui, Hawaii I did not ever used the Exclusive Buyer Representation Agreement, except in some instances. The advantage of this approach is that I was able to lock-in a client for a specific amount of time, at no cost to her until her departure from Maui and after she returned to the mainland. But why? Simply, when the client is here he/she will be researching and reading about the real estate industry and listings advertised in magazines and or TV ads; he/she will be talking to other people and asking questions and exchanging information; he/she will driving around and stopping at different resorts, open houses and new developments. Generally, he/she will be doing what you do not expect them to do and confiding in you, as their Realtor, and a fiduciary representative is very far from their mind. By having your client signed an "exclusive buyer representation agreement", he/she understands that you represent them and is OK to go and look around, but they must tell any other Realtor in the business that he/she has exclusive representation. This confirms your agreement with your client to insure he/she that you will execute your responsibilities per the agreement and you will avoid deflection of loosing them as a client. Following are some pertinent steps to take to lock-in your prospective client, as follows:
1-Greet prospective client
2-Do you have a Realtor?
3-Assumed they are buyers
4-Type of property desire
5Explain the importance of the Exclusive Buyer Representation Agreement
6-Get client to commit to sign the agreement
7-If he/she does not agree, you are wasting your time, you are giving-out free info
8-Thank them for their visit and explain to them your services and earnings are based on a commission basis and you are paid by the seller, if they buy
By using this method you will avoid wasting your time, giving out free information, waiting for a client that will be receptive to your services and knowledge( one out of a hundred) or more , and lastly the most important you are loosing control. In addition, when the client is in front of you, this is your only chance to give -out "first impressions", and the only and last chance to connect with their EI(emotional intelligence). Kid yourself not, the client is there to play you and to get the most out-of-you, if you let them they will win.
I do want to emphasize, that not every client will be a buyer, but a least you will get their true name, telephone number and email. These are key valuable pieces of information and your contact client list will grow to infinite proportions.
Lastly, it is up-to-you to close the client from day one until the Close of Escrow. Always remember the adage/acronym, ABC(always be closing). Thank you.
Andre Adoloffo, Realtor(S), BA
RE/MAX RESORT REALTY
(C)808-269-0879
(F)808-665-1947
andreadoloffo1947@hawaii.rr.com
Thursday, April 29, 2010
TENANCIES AND TYPES OF OWNERSHIP
TENANT IN SEVERALTY
Sole ownership, held by one person and created by transfer to one person and the possession of the property is totally to one person with the conveyance having no restrictions except if marital rights are present or if any type of prenuptial agreements are relevant to property ownership, in the event of death the entire property may be subject to probate and could be included in a gross estate for federal and state death taxes, it is also subject to creditor's claims and lastly is not presumed by law.
TENANCY IN COMMON
Mote than one owner with a specified percentage of interest for each person and with inheritance to heirs of estate, there is no right of survivorship and it is created by express act and also by the failure to express tenancy by the entities invloved, it has equal rights of possession, which means that each owner has a separate legal title to his undivided percentage interest but it could be made unequal if agreed upon by the owners and expresly executed, the conveyance by each owner is done individualy and the purchaser of such function will become a tenant in common, the fractional interest of each owner is subject to probate and included in gross estate for federal and state death taxes, the property passes by will to devisees or heirs, who then become tenants in common, there is no right of survivorship, the individual owner's interest is subject to creditors claim, it is favored by presumed law even in skeptical cases and presumed to be of equal interests.
JOINT TENANCY
There is more than one owner with an equal percentage of interest between each owner but in this case the inheritance goes to the survivor, it is not a corporation and it has the right of survivorship, the creation is expressed by parties intention in which the title, interest, possession and time are of equal possession, only one title is necessary since theoretically is deemed owner of whole, all the interests must be equally undivided, if you convey your interest it will break the tenancy agreement and the new purchaser becomes a tenant in common, there is no probate or will and the interest of the property goes to the surviving tenants, the last tenant holds it in severalty, in the effect of death the entire property is included in decedent's gross estate for federal estate tax purposes, but there is a percentage attributable to survivor's contribution, in case of creditors debt, the interest of an owner is subject to an execution sale, which makes the tenancy inactive or broken and the purchaser becomes a tenant in common, interesting enough the creditor gets nothing if the debtor tenant owner dies before the sale and lastly it is not presumed by law and must be expressly stated.
TENANCY BY THE ENTIRITIES
The property is held by husband and wife, with the right of survivorship, the creation is done mutually by each party, in case of a divorce they become tenants in common, there are equal right's of posession and there is only one title, the conveyance of the property is invalid without the consent of the other and there is no probate, but the survivor inherits the property, on the effect of death, the property automatically goes to the surviving party, which makes it tenant in severalty but the entire property will become a gross estate for federal and state taxes requirements, in case of creditor's claim it must be executed if both husband and wife owe the same creditor and lastly it must be expresly stated to be presumed by law.
Sole ownership, held by one person and created by transfer to one person and the possession of the property is totally to one person with the conveyance having no restrictions except if marital rights are present or if any type of prenuptial agreements are relevant to property ownership, in the event of death the entire property may be subject to probate and could be included in a gross estate for federal and state death taxes, it is also subject to creditor's claims and lastly is not presumed by law.
TENANCY IN COMMON
Mote than one owner with a specified percentage of interest for each person and with inheritance to heirs of estate, there is no right of survivorship and it is created by express act and also by the failure to express tenancy by the entities invloved, it has equal rights of possession, which means that each owner has a separate legal title to his undivided percentage interest but it could be made unequal if agreed upon by the owners and expresly executed, the conveyance by each owner is done individualy and the purchaser of such function will become a tenant in common, the fractional interest of each owner is subject to probate and included in gross estate for federal and state death taxes, the property passes by will to devisees or heirs, who then become tenants in common, there is no right of survivorship, the individual owner's interest is subject to creditors claim, it is favored by presumed law even in skeptical cases and presumed to be of equal interests.
JOINT TENANCY
There is more than one owner with an equal percentage of interest between each owner but in this case the inheritance goes to the survivor, it is not a corporation and it has the right of survivorship, the creation is expressed by parties intention in which the title, interest, possession and time are of equal possession, only one title is necessary since theoretically is deemed owner of whole, all the interests must be equally undivided, if you convey your interest it will break the tenancy agreement and the new purchaser becomes a tenant in common, there is no probate or will and the interest of the property goes to the surviving tenants, the last tenant holds it in severalty, in the effect of death the entire property is included in decedent's gross estate for federal estate tax purposes, but there is a percentage attributable to survivor's contribution, in case of creditors debt, the interest of an owner is subject to an execution sale, which makes the tenancy inactive or broken and the purchaser becomes a tenant in common, interesting enough the creditor gets nothing if the debtor tenant owner dies before the sale and lastly it is not presumed by law and must be expressly stated.
TENANCY BY THE ENTIRITIES
The property is held by husband and wife, with the right of survivorship, the creation is done mutually by each party, in case of a divorce they become tenants in common, there are equal right's of posession and there is only one title, the conveyance of the property is invalid without the consent of the other and there is no probate, but the survivor inherits the property, on the effect of death, the property automatically goes to the surviving party, which makes it tenant in severalty but the entire property will become a gross estate for federal and state taxes requirements, in case of creditor's claim it must be executed if both husband and wife owe the same creditor and lastly it must be expresly stated to be presumed by law.
Wednesday, April 28, 2010
HOUSING CREDIT OF $8,000 THE FACTS
04/28/10 Maui HI, USA
The New York Times recently had an article about the "true facts" involving the usage of the $8,000 Tax Credit by "first time home buyers". Following is a short synopsis:
1-the rush is on to complete deals by the end of April 30, 2010
2-the deal must close by June 30, 2010
3-approximately 1.8 million bought homes
4-$12.6 billion in credit were collected
5-these group of buyers would have bought anyhow and some were inelegible
6-the ratio was 1:3 (one legitimate and three did not need it)
7-the true legimitate buyer received from the Fed about $30,000 or more
8-thousands that were not qualified received the credit
In conclusion, the Treasury Department performed an audit and found-out that hundreds of million of dollars went to buyers who had not yet bought a house or
who were not true first time home buyers and were not qualified based on the rules and regulations of the program.
What really happened here? Hypothetical insinuation, the people are depending more on the Fed (Socialist Capalism), to provide them with income incentives to sustain or increase their "cash flow", regardless of whether the applicable regulations pertain to legal ramifications with pernicious consequences projectively. The money received will be injected into the economy, use by the people to purchase staples and other necessities and consequently the $8,000 will be spent. You may want to speculate that the standard of living and wages are not at par with inflation and any amount handed over is better than nothing to sustain your monthly expenses. You can only speculate, that other programs such as the unemployment benefits have the same effect.
The New York Times recently had an article about the "true facts" involving the usage of the $8,000 Tax Credit by "first time home buyers". Following is a short synopsis:
1-the rush is on to complete deals by the end of April 30, 2010
2-the deal must close by June 30, 2010
3-approximately 1.8 million bought homes
4-$12.6 billion in credit were collected
5-these group of buyers would have bought anyhow and some were inelegible
6-the ratio was 1:3 (one legitimate and three did not need it)
7-the true legimitate buyer received from the Fed about $30,000 or more
8-thousands that were not qualified received the credit
In conclusion, the Treasury Department performed an audit and found-out that hundreds of million of dollars went to buyers who had not yet bought a house or
who were not true first time home buyers and were not qualified based on the rules and regulations of the program.
What really happened here? Hypothetical insinuation, the people are depending more on the Fed (Socialist Capalism), to provide them with income incentives to sustain or increase their "cash flow", regardless of whether the applicable regulations pertain to legal ramifications with pernicious consequences projectively. The money received will be injected into the economy, use by the people to purchase staples and other necessities and consequently the $8,000 will be spent. You may want to speculate that the standard of living and wages are not at par with inflation and any amount handed over is better than nothing to sustain your monthly expenses. You can only speculate, that other programs such as the unemployment benefits have the same effect.
Thursday, April 15, 2010
NUMBER OF REAL ESTATE LICENSEES IN HAWAII
04/15/10 Maui Hawaii USA
According to a recent study done by the Department of Commerce and Consumers Affairs, PVLD, a total of 19,209 real estate licensees are practicing in Hawaii. The approximate population of Hawaii is around 1,290,000 and if you do the numbers, an estimated high percentage(%) of the population are real estate licensees. Just in Maui, which has a population of approximately 117,644 citizens, there are 2,902 licensees. What does this mean to the total number of multiple listings which are active in Maui and the total dollar value? Presently, according to statistics maintained by the Realtors Association of Maui (RAM), there are a total of 3,260 active multiple listings totaling $3,556,921,544. That is about 1.123 listing per licensee. Does this mean that there are too many licensees in Maui? If we breakdown the numbers in another fashion, there are 2,520 licensees, 175 corporations, 106 sole proprietors, and 101 LLC/LLP.
Last month in Maui, March 2010, a total of 70 single family residences were sold for a total of $40,838,789. Condos sold were 122 for a total of $107,277,684 and lastly, 12 pieces of land were sold for $8,156,900.
Latest economic outlook per the experts is sanguine, despite the fact that the state is suffering a deficit, the unemployment rate is about 9%, and production is down in many industries. Who do you believe? It is a fact that about 30% or more of the states employed are in the tourism industry and that a good portion of the state revenue comes from the real estate sector, eg. taxes. What does the future hold for Hawaii? Unless we think out-of-the-box and start developing an entrepeneur business development strategy we may be facing ambivalent economic woes. The ball is rolling and going towards the "red zone", the question is how do we deviate from the norm and force this ball towards the "green zone". Get it?
According to a recent study done by the Department of Commerce and Consumers Affairs, PVLD, a total of 19,209 real estate licensees are practicing in Hawaii. The approximate population of Hawaii is around 1,290,000 and if you do the numbers, an estimated high percentage(%) of the population are real estate licensees. Just in Maui, which has a population of approximately 117,644 citizens, there are 2,902 licensees. What does this mean to the total number of multiple listings which are active in Maui and the total dollar value? Presently, according to statistics maintained by the Realtors Association of Maui (RAM), there are a total of 3,260 active multiple listings totaling $3,556,921,544. That is about 1.123 listing per licensee. Does this mean that there are too many licensees in Maui? If we breakdown the numbers in another fashion, there are 2,520 licensees, 175 corporations, 106 sole proprietors, and 101 LLC/LLP.
Last month in Maui, March 2010, a total of 70 single family residences were sold for a total of $40,838,789. Condos sold were 122 for a total of $107,277,684 and lastly, 12 pieces of land were sold for $8,156,900.
Latest economic outlook per the experts is sanguine, despite the fact that the state is suffering a deficit, the unemployment rate is about 9%, and production is down in many industries. Who do you believe? It is a fact that about 30% or more of the states employed are in the tourism industry and that a good portion of the state revenue comes from the real estate sector, eg. taxes. What does the future hold for Hawaii? Unless we think out-of-the-box and start developing an entrepeneur business development strategy we may be facing ambivalent economic woes. The ball is rolling and going towards the "red zone", the question is how do we deviate from the norm and force this ball towards the "green zone". Get it?
FEE SIMPLE vs. LEASEHOLD IN HAWAII
In case you are not familiar with this real estate terminology, specially when you are buying property in Hawaii, following are the main characteristics, as follows:
FEE SIMPLE
Own land
Own property, or unit in a specific building
Own equity on both land and the property unit is located
Land may be inherited
Another legal term jargon "fee simple defeasible"
LEASEHOLD
Do not own land, you lease it for "x" numbers of years
Renegotiation of the lease could have an extension of the lease increase number of years
You pay a monthly "fee lease" to the owner of the land
You own the unit or property in a building
In a way you could be the "lessee" of the "lessor"
The fixtures you attach to the real estate may be removed at the expiration of the lease
Leasehod improvements cannot damage the property or conflict with the lease
Leasehold mortgage is a lien on the lessees interest in real estate
FEE SIMPLE
Own land
Own property, or unit in a specific building
Own equity on both land and the property unit is located
Land may be inherited
Another legal term jargon "fee simple defeasible"
LEASEHOLD
Do not own land, you lease it for "x" numbers of years
Renegotiation of the lease could have an extension of the lease increase number of years
You pay a monthly "fee lease" to the owner of the land
You own the unit or property in a building
In a way you could be the "lessee" of the "lessor"
The fixtures you attach to the real estate may be removed at the expiration of the lease
Leasehod improvements cannot damage the property or conflict with the lease
Leasehold mortgage is a lien on the lessees interest in real estate
Tuesday, April 13, 2010
AFFLUENT BUYERS AFFECTED BY FORECLOSURES
04/13/10
In this "D Grade Economy", even the affluent will be affected, according to reports by Realty Trac data. The chart is spiking up, and the numbers are increasing. The two most frequent articles on this subject have been published by THE WALL STREET JOURNAL and INVESTOR CENTRIC BLOG. What does this mean to the real estate industry? Basically, the lack of money or savings, decline in income or just an uneven debt to income ratio plus the uncertainty of the job market and the decline of employment hiring, will be a few of the factors contributing to the default of mortgages and foreclosures. The fundamental principles of an economy are lacking in our D Grade status. The "domino effect" started with the social income status of the "poor" and now to the "rich". Will it have an end? Fortunately, yes. But the inventory will be enormous, and to sell all these properties will take years. Borrowing money today is not an easy task, and the new Good Faith Estimate requirements are more stringent. The interest rates are low and the tax credit incentive will expire on April 30, 2010. What is next? Perhaps, a lowering of the interest rates and an extension of the tax credit for first time home buyers? At this juncture simplification and implementation of new incentives will be the motivators for the new buyers, if you will the "new generation of consumers", by the way more aware of the corruption of "elite capitalism vs. democratic capitalism". Every nation or empire that has tried to manipulate the level of affluency to a selective few has failed.
In this "D Grade Economy", even the affluent will be affected, according to reports by Realty Trac data. The chart is spiking up, and the numbers are increasing. The two most frequent articles on this subject have been published by THE WALL STREET JOURNAL and INVESTOR CENTRIC BLOG. What does this mean to the real estate industry? Basically, the lack of money or savings, decline in income or just an uneven debt to income ratio plus the uncertainty of the job market and the decline of employment hiring, will be a few of the factors contributing to the default of mortgages and foreclosures. The fundamental principles of an economy are lacking in our D Grade status. The "domino effect" started with the social income status of the "poor" and now to the "rich". Will it have an end? Fortunately, yes. But the inventory will be enormous, and to sell all these properties will take years. Borrowing money today is not an easy task, and the new Good Faith Estimate requirements are more stringent. The interest rates are low and the tax credit incentive will expire on April 30, 2010. What is next? Perhaps, a lowering of the interest rates and an extension of the tax credit for first time home buyers? At this juncture simplification and implementation of new incentives will be the motivators for the new buyers, if you will the "new generation of consumers", by the way more aware of the corruption of "elite capitalism vs. democratic capitalism". Every nation or empire that has tried to manipulate the level of affluency to a selective few has failed.
MARCH 2010 MAUI SALES
ANDRE ADOLOFFO, R(S), BAHAR, NAR,RAM member since 2005
(C)808-269-0879
(F)808-665-1947
(O)808-879-5700
Aloha, from Maui Hawaii, voted by CONDE NAST magazine, "best island destination in the world", fifteen times in a row. If you are thinking about buying or selling real estate, use my expertise. If you are going to buy real estate, buy in the "best destination". Last month in Maui, 70 single family homes were sold for a total of $40,838,789; condominiums were 122 for a total of $107,277,684 and land 12 were sold for a total of $8,156,900. Is this a "sanguine market"? Yes. it is.
Right now the "best deals" to buy are in every island, just pick one and search by going to http://www.remax.com/. If you are statistically and chart concious, just send me your email and I will send the stats. Thank you.
Respectfully Submitted, 04/12/10
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