Real Estate: A buyer's market, but still expensive

Compared with many Mainland markets that are in a real estate free-fall, prices and sales activity in Hawaii will still be pretty solid in 2007. But it's becoming a buyer's market, with quick sales, multiple offers and aggressive pricing of fixer-uppers definitely a thing of the past.
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Expert foresees years of stable home prices

O'ahu single-family home prices, which began to cool last year, will likely remain in the $600,000 to $650,000 range for several years, according to one real estate expert. "We'd like to say that the market is stabilizing or normalizing," said Harvey Shapiro, research economist with the Honolulu Board of Realtors. "It's not overheated like it was."

The Honolulu Board of Relators yesterday released its quarterly housing market statistics for fourth quarter 2006, which provided further evidence that the housing prices are leveling.

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Flat Fee MLS or Full Service? We answer your questions.

By now you probably have heard about flat listing fee companies, in fact they are popping up all over the place. However, did you know that about 90% of the companies that offer the service aren't even real estate brokers and can't list your property? Instead, they charge you for the flat fee and then send you to a flat fee broker in the state your property is located. They pay that broker a nominal fee, usually 1/2 of what you paid, and then you never hear from them again. Its not that its a bad thing, however, you just don't get to pick the agent, you get who they give you.

Make sure the company you choose is in good standing with the dept. of real estate for their state and the BBB. You should always receive a sign that you can place your phone number on to post in the yard, federal and state disclosure statements as required, unlimited changes to your listing and at least a one year listing if you choose to have it on that long.

Like any business, there are the good and then there are the bad. My advice is to shop around. Not for the cheapest, but the most reputable and a company that answers the phone when you call or calls you right back if you leave a message.

The flat fee mls program isn't for everyone. You will have to be involved with showing your property, employing an attorney to review the contracts, making sure escrow is setup, title is ordered, earnest money is deposited and communicating with the Buyers Agent AND the Buyer's lender. Its not brain surgery, however, it does take a little more time and attention to detail. Also, keep good notes, write down deadlines for the contract conditions and follow-up with all parties, verbally and in writing. Remember, there is no verbal agreement in a real estate transaction, it must be in writing!

If you feel like this process is overwhelming or is too time consuming, then by all means get a full service agent and negotiate the commission.

Flat List RE has been offering the flat listing fee program since 1999. We are licensed real estate brokers in Arizona, Hawaii, Oregon and Washington. When you call us, you will speak to the broker you will be listed with, US!

Visit our website for more information at www.flatlist.com.

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OAHU HOME SALES SURGE DURING DECEMBER

During December, sales of 346 single-family homes and 458 condominiums were reported through the Board's MLS, an increase in sales of 9.8 percent for single-family homes and a decrease in unit sales of 16 percent for condominiums, compared to the same month in 2005. The median price paid in December for a single-family home was $613,500 and $315,000 for a condominium. For the 2006 full year, sales volume is down by 12.5 percent for single-family homes and 20.2 percent for condominiums, while the median prices for the twelve months of 2006 were $630,000 and $310,000, respectively, increases of 6.8 percent and 15.2 percent over the same time period in 2005. Total dollar sales volume for the year was $5.466 billion, a decrease of 8.8 percent, or $527 million, compared to the $5.993 billion generated in the housing market in the same time period in 2005.

Resale Stats for December on Oahu