If you can recall back to August, we went over the 4th draft of the new proposed zoning legislation that was put out by the in regards to the current short term vacation rental policy.  As a preface, I encourage you strongly to go and read the proposed drafts yourself.  However, if you do not want to take the time to do that, the coming two weeks are going to be my personal review of the 5th draft.  This review will be my breakdown of how I see this proposed draft, as well as some of my thoughts and opinions on this.  

As it was in draft 4, the county is still planning to completely scratch the previously existing “Short Term Vacation Rental’ (STVR) policy that exists in the zoning code. They plan on implementing the new “Transient Accomodation Rentals” (TAR) in place.  As I stated in the last review of their 4th draft of this proposition, I do not love that idea, but given the benefit of the doubt that the newer draft would provide more, I was willing to read forward into Draft 5.  

In this week's blog I plan to break down Draft 5’s proposed plan for the hosted TAR’s.  The 5th draft is comprised of two categories of classifications for short term rentals.  They have hosted and un-hosted vacation rentals.  The difference is as you can conclude from the name, whether or not a host is present in the property.  The hosted TAR’s are then subdivided into two categories themselves, operator-hosted and owner-hosted.  Difference here being who the individual who is present on the property as compared to whose name is on the deed (who has principal ownership on the property). There is some commonality between the two, whereas in order for the rental to be considered to be a “hosted” TAR the property must be their primary residence.  

Break Down: 

The Owner-Hosted rentals actually provide a lot of variability.  A couple of the initial pros that stood out to me: they may exist in any zoning district, they can be any single-family dwelling, and there are nonconforming use certificates that are available, when proof of operation in the past is presented by the owner,  for ohana units or guest houses that have been hosted vacation rentals. The nonconforming use certificates are transferable from seller to buyer of the property, if the buyer intends to use the property as a short term rental. 

Fees:

Initial Registration $500

Annual Renewal: $100

Nonconforming Use Certificate: $250

Nonconforming Use Certificate Annual Renewal: $250

I did not think that this section was too bad! Really it is very comparable to what currently is in place with the rules and regulations of the STVR’s.  However, an ongoing annoyance that I have found repeatedly are the fees. Essentially if you apply for a Nonconforming Use Certificate you are going to be paying $250 annually, which I find a little egregious when put on top of the renewal fee.  There is truly no reason in my opinion for the owner to be double charged because of what could be seen in my opinion as an existing condition that comes along with their property and their rights to use the property as they please.

Now onto the Operator-Hosted Transient Accommodation Rentals.  Let me again restate that for a property to fall under this designation the operator must live in a single-family residence themselves.  This designation would apply well to condotels or something of that nature.  To quote the draft; “when they transient accommodation rental is subordinate and clearly or customarily incidental to the use as the residence and permanent address of the operator…”.

Break Down:

The operator-hosted TAR would only be permitted in Resort (V), General Commercial (CG), Neighborhood Commercial (CN), Resort Commercial (CV), Downtown Hilo Commercial (CDH), and Residential-Multiple (RM) districts.  

On the positive side: the nonconforming use certificate is also available for “grandfathering in” of already existing units that under the new proposed regulations would not qualify as TAR eligible.    

Fees: 

Initial Registration $750

Annual Renewal: $150

Nonconforming Use Certificate: $375

Nonconforming Use Certificate Annual Renewal: $375

Here is where I personally question where to begin to draw the line for personal property rights.  I can see how a property owner could feel slighted by the restrictions as well as the increase in fees annually with the operator-hosted rental.  With that being said I totally understand the increase in price when the operator-hosted TAR would be a condo or some sort of property with multiple units.  As the gross number goes up, so too should the fees.  From an investment property stance however this could potentially hurt a lot of people who are currently in the business of owning or operating these operator-hosted TAR.  

I am not going to get too deep into the 5th draft, and next week I will go over the un-hosted side of the proposition.  Again, I do encourage you to do your own home work, read Draft 5 of the Transient Accomodation Rental proposal.  Trust me, I get it.  There are a lot of ways to look at it.  On one side of the coin there are investors and property managers who rely on this market to make a living.  Then on the other side there are people out there unsure if they will ever be able to buy a home because of the state of the market.  Is the TAR reform the correct fix? I have my opinions and I advise you to create yours and talk about it.  Get out in the community with your neighbors and friends to see what they think.  This is something that could potentially have a huge impact on our entire island from the top to the bottom.  With tourism being such a large part of the overall economy that also means that where these folks are staying will have a massive impact on the businesses around the island as well.  If the amount of Airbnb’s and VRBO’s in town diminishes are visitors going to be more likely to stay entirely on the resorts? Will that harm places like downtown Kona and the shops like the ones along the Kona Inn Shopping Village? 

There has been a lot of action in Kona as of late it seems to me.  As the cruise ships process on their route from north to south it has really spiked the activity for a lot of local eateries and tourist destinations.  I work a few evenings a week at Huggo’s, and have noticed the uptick in patrons coming to visit us.  It makes for the 5 hour shift to just fly right on by.  In addition to the influx of cruise ships, there are also a lot of cultural and cross cultural events going on in Kona. 

If you were not aware, the women’s Ironman World Championships was hosted on our beautiful island two weeks ago.  I also must say that I personally feel that this year was one of the best all around in regards to my enjoyment of the event. I remember last year. Having both the men and women's championships in town seemed almost unbearable at times with the traffic, crowds, and lines for everything and everywhere.  There seemed to be a massive overpopulation in town, and potentially I think it  hurt a lot of the local businesses more than it helped.  

After talking to some business owners locally they also felt that this year was much more manageable for them as well.  For example one cafe owner had to close his store front last year because his space quite literally was not large enough to cater to the masses that came in for the Ironman.  He then restricted his menu down to about 3 items and set up a tent in his outdoor seating area.  Not necessarily that this hurt his business by gross numbers comparison, but rather there is quite an extreme opportunity cost.  For example, if all he could serve in his roadside set up was hamburgers that he net profited $2 on. Then imagine what he could have done with the same number of customers who would order the ever so popular panini that he can net profit about $5 on.  Also, with just half the athletes competing this year, I thought that Kona was able to show her beautiful self off more in the massive influx of visitors from all over the world.  

There are also a couple of other events coming up.  The biggest of these being the Kona Coffee Culture Festival that kicks off at the beginning of November.  That is a week that I would encourage you to go and experience, even if it is just for a cup of coffee and a look around.  I was negligent to the intensity of the world of coffee until I experienced this festival last year.  There are folks who like coffee for the gastrointestinal benefits and caffeine contents (this is me), and then there are people who LOVE coffee and everything about it (this is the people who fly in for this festival).  They seemingly eat, sleep, and breathe coffee (which sounds like a bit of a health hazard if you ask me, but who am I to judge.)  So head on out to see what the Kona Coffee Festival is all about.  You may be surprised by the rich history that Coffee has on this rock in the middle of the Pacific that so many of us call home.  

With these international gatherings, another important side note to remember is that people come from all over the world for these events.  It is not always the case that they have the same social practices or regularities that we are accustomed to.  A great example was from Ironman.  In many European countries it is custom that bicycles share the same road space with cars, they do not have bike lanes at times.  So you may have noticed a more significant amount of bikes on the road.  Yes, this can cause a lot of frustration, I feel it too, don't worry.  That person who was riding in the middle of the road was not being a “jerk” however.  They were just doing what was accustomed to them.  Practice your aloha, and take a few deep breaths.  And hey, try to enjoy some of these events and the beauty that lies within them.  For me, it is the determination I could see on those ladies' faces as they fought to the finish line.  For the Kona Coffee Festival I think of the coffee farmer who is out there busting his back trying to make ends meet with this year's crop.  This festival, while more flashy than he may be, is most likely an event that provides him with great reassurance and pride for what he puts all of his effort into. 

How does this tie into real estate? You may have never thought I would get there, but finally here we are.  This is a prime example of opening your home up to others.  Hospitality is at the root of the aloha spirit, and the headquarters for that hospitality is your home.  I don’t mean you should just invite all of these visitors into your literal home, but be open to them visiting us here on the island.  Be kind, patient, and share a smile with them.  A smile means the same thing no matter what language you speak. 

Ahhhhh it really is an age old question, “with so many choices out there how can I be sure I am making the right one?”  This question has honestly become an entire marketing campaign for a major insurance company, as well as many other conglomerate businesses.  (I am sure you can figure out which ones I am talking about.)  For good reason this question is the root of their marketing campaign because of the truth that it bears.  The feeling is so relatable in so many different facets of life.  Really, think of your entire day in terms of the choices we have to make.  You wake up, hit the snooze or get up and at em. You get vertical and head to get some coffee.  More choices, do I get the seasonal pumpkin spice latte OR do I stick with my old reliable black americano that I drink everyday?  Pumpkin spice it is, why not enjoy the season.  Here you are about two hours into your day and you have had to make up your mind about 5 times, there are plenty more choices that are beckoning to be answered later on as well!

A funny example from my childhood was at the supermarket, I wouldn’t dare go to the grocery store to buy fruit that was not properly self inspected.  My mother was a notorious melon knocker, and in turn I now by association am a melon knocker.  She would pick every melon on the pallet up, raise the melon to her right ear, and then knock on it with her left hand as if she were trick or treating…. I must admit this was very embarrassing for me as a child in the supermarket with my mother, but guess who is a melon knocker now…. THIS GUY. (maybe next weeks blog will be an analysis on the theory of nature v. nurture) 

Point being is we are constantly surrounded by choices and a “field” of options.  It is for this reason I think the concept of picking the perfect pumpkin out of the pumpkin patch is so fitting.  I mean there is so much that goes into the perfect pumpkin. Color, shape, firmness, size, age….. The list goes on an on.

One of those options usually is better than all the others.  The same principle of superiority holds true across the spectrum of where these decisions exist, both inside and outside of the pumpkin patch..  I have come to find that these principles hold true when picking out your real estate professional as well.  There are pros and cons to all firms, agents, and scenarios but what I want to do is to try and arm you with the information so that when the time comes, you can choose what/who is right for you.  

You know that little feeling you get inside of yourself deep down, call it instinct, intuition, or plainly just your gut.  That feeling is what I recommend that you listen to.  With that being said, the firm and person that you choose should be there to educate you.  I am not sure what you have been told or experienced in the past, but the real estate professional is there to coach you though.  Giving you options and laying out all of the possible outcomes to the decision that YOU get to make.  Notice I said that the decision is yours to make.  The professional tasked with helping you should never tell you what to do, only what you could do. Major difference there!  

On the other side of the coin any real estate professional worth their salt should CARE about more than their commission they are set to make off of this deal. A great quote I saw in a class I attended the other day went: 

“They (clients) do not care what you know, until they know that you care.”  

How TRUE! The agent, when under a representation contract,  is required to “act in the best interest of the client”. I make the mistake of assuming the best in people at times and that can come back to bite me.  The Code of Ethics does not say that they are required to care about the “success” of their client. How do you know the agent cares?  Same way you know that your friends and family cares of course!

Also I am a firm believer that “success” should be discussed in the very beginning of the representation agreement, that way agent and client are both on the same page for what the ultimate goal is with the property transaction. 

Do your best to go into a transaction with an agent who care about the success of your transaction.  Also note that minor blunders could be a result of poor communication, these minor mistakes do not always mean that your agent does not care, it could be quite the opposite.  Potentially they care so much that they are applying pressure to the situation, in turn making it bubble over.  Best way to fix the agents over application of pressure? As the message always is, just communicate!

In the mainland it is time to crank up your heating system.  Here on the island it is time to crack a window at night and cozy up with a blanket.  There is a certain chill that is in the air and with that the thought that the holidays are coming up very quickly.  Do not worry, I will not be going straight to Christmas ALREADY.  I mean for pete's sake people, let's try to at least get to halloween then let thanksgiving have its time.  The holiday season does have me reminiscing on what makes them so special.  What really makes them so special for so many? I came to the conclusion that it is the ritual. The  holidays are a people, a feeling, and last but not least a place.  I remember growing up, grandma's house was the constant location for all of the goings on.  I grew up with a pretty large family (my dad being the oldest of 10), and every holiday that we had on my dads side had its own itinerary and schedule.  

That was a major part of what made all the holidays special, but a huge part of each and every memory is my grandma's house.  In my mind's eye, I see her huge dining room, with the Hogwarts-esk kitchen table.  The entire room was one big table with galley seating all the way around it.  A most memorable part of eating at her table was doing your best to not get a seat on the inside, because if we were sandwiched in and you wanted to get out for seconds or even to use the restroom you were at the mercy of whoever sat on the outside.  They were the “keepers of the gate”.. 

This story and memory may not make you smile like it does to me, but I am sure you have a rolodex of your own memories involving the places from your childhood and holiday memories.  A weird tick that I have developed since becoming a real estate professional is thinking about structures and buildings longer than most probably do.  This is something that I am just now taking note of.  Buildings, properties, zoning, and planning are things that you may not think about more than about 5 times your entire life.  To me this is what I find running through my mind every day.  This also makes me realize the emotional side of a home.  A house is so much more than a monthly payment, a place for shelter, or an asset to most people.  I encourage you, next time you drive by a subdivision and see the toys in the front yard.  Or the couple tending to a garden, think about what those places mean to the  people who live in those homes.  Those homes that are filled with family photos, memorabilia, and possibly subpar art hung up on the refrigerator. 

In the same token selling and buying a home is more than just a financial decision for most getting into real estate.  It is the turning of a page or quite possibly the end of one chapter and the start of another.  One of the first things that Ed, Principal Broker of the Island Land Company Inc., told me was that there is always a deeper emotional decision for buyers and sellers to make about their home.  He instructed me to never push on this part of a sale, but to be aware of it always.  The emotional side of a transaction is none of the agent's business, the agent is there to cater facts and consultation when asked only.  These heavy emotions that arise from the real estate transaction are for the client to settle out themselves.

If you have ever had your emotions pushed on when you were financially making a decision how did that make you feel? If the decision was the right one to make you usually will hardly notice, but more evident in your memory are the instances where your emotions were used to get your pocket book open.  That usually makes you feel a type of way.  You feel betrayed, pissed off, and empty all at the same time.  This is never how you should feel before, during, or after a real estate transaction. 

My point of this week's blog is not to conjure up regret or bitterness towards others in the past, but rather to have us all appreciate the places that make our holiday season what it is.  Whether you find yourself bobbing for apples in middle America, or catching waves as high surf season kicks back up.  Be appreciative for what you have and where you are because we truly never know who out there would love to be in that spot.  Mahalo as always, and by the way be sure to enjoy halloween AND thanksgiving.  I promise you we will get plenty of time before christmas to start fantasizing about it!

As you all may or may not know last week we went over a little “Q3 + a month” market update.  That in turn, made me personally realize that we are now in the 4th quarter of the year! Wow, it really has flown by.  With the passing of time it is important for us all to look back on our year thus far, and realize how much we have been able to accomplish. Also this is a great time to check in on the progress towards our goals that we set for ourselves on January 1r. How about those goals that we had from the beginning of the year?

I have found myself making steady progress on most of my goals, which leads me to see how cool it is to set out a plan in January, act on it incrementally every day, and then look back on the progress that I have made over the past 9 months.  

At the Island Land Company a major goal of ours was the opening of the open house at the Royal Ali’i Planned Urban Subdivision (PUD).  The Royal Ali’i is a beautiful gated community with 19 homes, that is hoping to be fully finished within the next 3 years.  The lots range in size with the smaller lots being roughly about 5,900 sq. ft. and the largest lot being 9,654 sq. ft..  Depending on the lot size, there are also two different sized homes available to build. The smaller home being a 3 bed 3 ½ bath home.  The larger lots allow for a larger home consequently with the possibility of having a 4 bed 4 ½ bath, (1 bed and 1 bath are detached in an additional dwelling unit or “ohana” style).  I am biased in thinking that this new exclusive community, with a very low HOA fee (roughly $90/month), is one of if not the best newly built divisions in Kona.  

Some of my favorite features would have to be the prime location.  The subdivision is located directly on Ali’i drive, but not too proximal to all of the craziness that ensues with being in down town Kailua-Kona.  Being on Ali’i Drive you are within walking distance to great food and entertainment, but removed enough so that a lot of the disturbances to your front door step.  Another great feature to the community as a whole is the size of the community.  Because the community is more secluded, all members of the community will be given a voice and a say in what goes on within the subdivision.  There will be no ruling body that imposes rules without a fair chance to explain or express interests that differ.  

As for the homes themselves in the subdivision, they were fabricated and built by Larry Smith of Larry R. Smith Construction INC.  Larry’s company has been a reputable builder in Kona for over 33 years. He has built a variety of single family homes ranging from luxurious estates to single family project style homes.  No matter the purpose of his builds his reputation of using the finest of materials and taking every precaution ensures the best possible built home.  I must say for myself that the proof of this is literally in house.  The house that he has built in this case 😉. 

I personally love the current floor plans for the single level homes in the Royal Ali’i Subdivision.  There is some freedom in the layout of the interior of the home for the potential buyer however.  The baseline for the 3 bed 3 ½ bath is an open concept kitchen with a large island sink and counter top leading into a dining/ living area.  (If you can’t envision this based on my explanation you may just have to come see for yourself!)  This plan also boasts a private bathroom attached to every bedroom in the home, this is not the case in most homes on the Big Island.  There is then a shared powder room that is adjacent to the kitchen.  

All of the homes within the subdivision that construction has started on have been built using 2x6 in. boards, rather than the industry standard conventional 2x4 in. boards.  This provides two things; 1) greater stability and 2) more insulation and coverage from the Hawaiian sun.  The homes are also all equipped with Techshield Radiant Barrier Sheathing.  This allows for insulation and protection from the full spectrum of radiation as opposed to just visible and ultraviolet rays. This sheathing when mixed with the 2x6 framing makes for a cooler, more comfortable home, even during the hottest parts of the day. If you are familiar with Kona coast living, then you know that it does get pretty warm everyday from about noon until sunset, no matter the season. But to my pleasant surprise, these homes seemed very temperate even with no centralized air.  

This has been a huge project for Ed and the rest of the team and we are excited and happy to have the Royal Ali’i dream and vision finally start to come to life.  Do us a favor and stop by. Come see one of the newest and best subdivisions in Kona.

Think of this as your one month into the 3rd Quarter market update from the Island Land Company.  The last couple of blogs have been a bit more personal, but today I plan to stick to giving you all the facts and numbers of the current market today. The hottest topic of them all? You guessed it, the seemingly ever increasing mortgage  interest rates.  And yes, they are continuing to climb.  As these rates continue to grow and the market is starting to bubble. The market has been put at a bit of a standstill.  Buyers are falling into two categories, some are holding their water while others are jumping in with anticipation of rates dropping and refinancing at a later time.  I am not to say either strategy is right or wrong, as we all know, what ever you were to decide, you are often times seen as an idiot up until whatever it is that you decided to do works or turns out for the best. 

The proof of the bubble and stagnation lies within the relation between bonds/stocks and the mortgage rates set by the Fedral Reserve (FED), according to Morgagenewsdaily.com.  Last Friday ay the gain on bonds was significant enough to elicit a historically relational drop in interest rates, however interest rates did not drop. Why is this? 

There was some speculation, and two theories emerged out there that I personally think would be the most ideal reason for the unusual lack of correlation.  

The first theory is that the lending institutions looked into a report that is released 8 times per year by members of the board at the FED.  When looking at the report from the September meeting held by the members, the meeting in September left inclinations that the members anticipated the Federal Funds Rates (an instrument put into place to try and defend against rising interest rates) to drop more significantly by the end of 2024, in turn the market was influenced as such, beings that the interest rates remained the same in order to try and establish a correction against the rising inflation rate.  So while the markets saw a boost, it was short lived, or shorter lived than experts would have liked because of the unmoving interest rates.  

This bump was felt and seen by the stocks and bonds markets, with a boost in prices to the S&P, but the 10 year trajectory for the S&P is still predicted to decline as inflation is predicted to rise.  The day that this report is published is known as “Fed Day” in the mortgage and stock market spheres.  

The second theory is that there is a reverse effect coming from the buyers standing still on their decisions to go in for a loan. This second theory is saying that the buyer is putting pressure on the Fed and the lending institutions by not buying and holding still as long as possible, then on the opposite side, the Fed is playing “hard ball” while maintaining the current interest rates due to the stress being applied to the market via the looming inflation rates. I personally lean more toward the camp of the first theory, with “Fed Day” being the primary mover of the needle.  

On another note, at this current point in time you could also say that there is a record setting amount of pressure being put onto lending institutions as they have a job to do as well.  Let us keep in mind that a loan officer’s job is to lend money, take a % of that as gain, and then rinse and repeat.  This has become difficult to do however if rinsing and repeating is not happening because no one is coming in for loans.  

Lenders are not all “sharks” who want to bankrupt you, take your money, and property.  At the same time, a great line I heard at a conference I attended was that “not all lenders are created equally.”  This holds true in my opinion, but I do feel for those who work at these lending institutions as their jobs are being put into jeopardy due to the current condition of the market.  

What do you want? Everything.  When do I want it? 5 minutes ago. 

Sound familiar? If yes, then congratulations. You are what most would call a human, not just any human, but one that is ambitious.  A human that has goals and dreams.  Having this trait is both a blessing and a curse.  Ambition is the same great force that pulls you out of bed every morning to fearlessly take on the unknown future that lies in store for you that day.  Ambition drives the unprecedented competitive stamina, to endure the highs and lows. The competitive stamina that carries your forward and through in order to just keep moving forward.  This ambition is also the same force that leaves you sleepless at night thinking about that deadline, or that one missed element. Enabling you to push through out sleep and perform. Ambition is also responsible at times for us getting down on ourselves when we do not perform to our optimal level. This is when the anxiety creeps in.

There are times when I will get frustrated with myself for getting tired and wanting to take a nap after I have had my nose to the grind stone for some amount of time.  As I said before, having this burning ambition can be both a gift and a curse.  It is fairly common for ambition to be considered “fiery” right?  I do not think that this is by chance.  This ambition can be very similar to a fire.  As we all know fires can be very powerful, in both positive and negative manners.  Fires have the ability to warm an entire building in subzero temperatures, but fires also have the ability to burn up that entire building if that fire is not correctly controlled.  When fiery ambition goes south this is when we start to feel that anxiety.  In buying property or making another big life decision it is completely normal to feel fears of the choices we have made.  We just have to focus on what we can focus on, and control what it is that is in our control.  

What is the control that we have in our own practical life? Patience is the control of our fire.  Patience is often easier said than done, but patience is an attainable skill. How do you hone a skill? The same way you would any other skill. PRACTICING! 

Have you ever not gotten what you NEEDED when you NEEDED it? It is my firm belief that the timing of the forces that may be are always right for those who are just in their intentions.  Solutions for controlling ambition? Here are a few:

• Revisit  previous wins, this helps remind yourself that you do win when the time is right.

• Look into your past, remind yourself of the times when you felt that you were down and out.  Then recall how you rose up from that time and situation.  Is what you are going through now worse than where you were at that point? See the proof is in the past, and that this too shall pass.

• Focus on what you can focus on, this seems silly but there is someone out there who needs to hear this.  

• Make a list with two columns.  The left column consists of your troubles.  The right column consists of all the things you can do today to make today a successful day.  Is there any correlation between the columns? If yes, you just found the answer to your own problem.  If not, then you see that these troubles are out of your control.  Thus meaning that they truly are not YOUR troubles, because you have no control over them.

• Do the little things really well.  

• Just like interest on dollars, little things in your daily life.  What do I mean? An example would be, if someone isn’t able to keep a clean room and make their bed everyday how could they possibly organize and care for an entire house or property.  In order to receive something you must first be fit to receive it.   

Lastly, just know that you are not alone in feeling these things.  I as well as many others feel them as well.  It is completely normal to feel the entire range of emotions as a human. In fact, that is what makes us human.  In the words of Master Ugway from Kung Fu Panda “You must let go of the illusion of control.”  We cannot control every element of life, because we have other people in our life! So take pride in who you are, take pride in what you do.  At the end of the day that is truly who we are. The decisions we make have to be final. Even though anxiety may rise from our decisions on the property we buy, we cannot go back on our judgement. If we do go back on our own decisions then the anxiety will have even more room to grow and compound onto its-self. Be ambitious not anxious.

This week I am back on the topic of escrow, in particular I am looking at the escrow process  from the seller's perspective. Recently I have been assisting with the coordination of an escrow on a beautiful property. Now do you recall that escrow is a process in which the contract is given to a 3rd party, so that they may conduct the terms that were agreed to by the buyer and seller?  Conduction of the terms of a  purchase contract, like many plans, can have its setbacks.  These setbacks could also be both minor and major.  In the case of a major setback it is not uncommon that the contract be terminated.  Minor setbacks occur commonly and oftentimes can be navigated via communication. 

What is a minor setback you ask?  It can come in the form of an inconvenience to the time table of the transaction that is brought about at no fault of either the buyer or seller.  For example, the contract states that the termite inspection is due within 10 days of agreement of the purchase contract.  This is all fine and dandy until the selected termite inspection company has zero availability to even send someone out to the property for the next two weeks.  Now what do we do?  

COMMUNICATE! 

There is no reason for this to be a deal breaker, while yes technically in this instance this failure to meet the date set within the agreed upon terms would make the current purchase contract voidable as it is currently written.  There is no need to do that however, as long as the buyer still wants the property and the seller still wants to sell there are alternative options that can be taken to move this transaction forward.  The best option in my opinion is what is legally known as an addenda.  For practical reasons, think of an addenda as an add-on to the contract that was originally agreed upon.  The addenda gives us the ability to now take the agreed upon 10 days and add an extension.  Making the new date the termite report is due after the newly agreed upon date.  Now the transaction can be conducted forward and everyone may continue the transaction happily.  In this case the buyer got a full termite report and inspection prior to closing, which in Hawaii I would HIGHLY recommend having done,  or without terminating the contract. The seller got an extension from the buyer inorder to deliver the inspection at a date that is achievable for the seller.  

When such large sums of money are being transacted upon such as in a home it is very common for both buyers and sellers to get nervous, thinking the other half of the deal is trying to “get one over on them”.  For this reason, having a real estate professional by your side is incredibly helpful.  If you as a buyer/seller were to run into this sort of a situation with a termite report and you were not represented by a real estate professional, one  could easily be overwhelmed by the apparent complexity of the situation and void the contract entirely.  When there was a rather easy option as I explained earlier.  Just communicate.  

I speak for our firm in particular when I say that in the instanceof one of  our transactions running into these types of setbacks, we go at them head on both legally and effectively.  Acting as a direct communication/advisory channel for our clients to make the best decision in their interest.  As your representative, we  also communicate directly with the other side of the deal.  If the other side of the deal also has a representing agent, then we communicate directly with the agent.  If the other side of the deal is self represented we work directly in contact with them.  We handle most of the complexities of the contract and escrow coordination while our clients are able to sit back and relax, as long as they are able to give us the proper documentation that we need according to the contract at hand; sellers disclosures, warranties, preferred inspection companies, land stakings/ surveys, etc.

There is a lot that goes on behind the scenes in an escrow. As real estate professionals, it is our job to filter through all of that stuff so that you as the affected transactor only need to worry about what you need to worry about, like your  life, family, what's for dinner, you name it. 

This week's blog will be on the lifestyle side of property.How do these two topics correlate you may ask? As shelter is a necessity in life, I believe that the two tie in together rather well and not having one makes success and fulfillment within the other very difficult.  The inspiration for this week's blog comes from circumstances around me in my own life.  This crazy wild ride we call life is full of ups and downs as well as a fair amount of in betweens where we can feel kind of gray and confused,   

Professionals in the psychology field will call the energy and vibrations that you as a human emit “a force in the electromagnetic field.” Hippies will call it an “aura” or a” vibe.” No matter which camp you yourself fall into, one thing is for certain, we all have energy that we emit.  This energy affects us as well as those around us.  Every one of us has been involved with individuals who have a very positive energy, they leave us excited and ready to take on the fires of hell with a squirt gun.  We all also have had experiences with people who drain us of all positivity. After being in their presence we feel like the world is collapsing around us, and now all we want to do is go home and go to bed eating the whole tub of ice cream. 

The question that begs to be asked by each and every one of us is, “which one am I?”  There are days when I myself am a complete drag to be around.  Where my attitude sucks, I am mad at the world, and plain and simply you would not want to be around me.  This is very unfortunate, but these days happen. Having bad days or moments is normal human behavior.  We are emotional creatures, and if every day was the highest of highs, either you have unlocked whatever it was that Indiana Jones was looking for, or maybe rehab should be considered as an option.  The problem lies not in being in a bad mood, the problem rather exists in STAYING in a bad mood.  I have recently tried to make a point of whenever negativity begins to rise within me, trying to take three deep breaths, sorting my thoughts from my emotions, and conducting a critical analysis as to why it is that I am feeling sour.  Qhat I usually find is pretty consistent.

Usually, whatever it is that is making me such a Debbie Downer is either not a real tangible fear or problem for me, or is out of my control.  An excellent exercise that I have found personally is to make a list with two columns.  In column 1 I write all of my troubles and problems, in column two I list things that I can control today during the next hour and within the present moment.  Seldom do the two lists correlate at all. 

I tie this into property because I feel and hear an immense amount of unhappy folks in the market today. “This market is ridiculous.” “There is no way we can afford a home right now,” ect.  While yes you may feel this, and it may even be true.  I am a firm believer in what we emanate out to the universe will come back to us. So in turn, you become correct in what you are thinking and saying, you will not be able to afford that home.  I also think this is how an energy vampire comes to be.  Radiating their negativity all around them, everywhere they go.  

The Solution

Be grateful today, these problems too will come to pass. Stress not about the things you cannot control, because I promise you we are all out here trying to play the same game on the same field with the same rules.  Be bold and dare to think.  Challenging yourself in order to create discomfort.  It is through the discomfort that you will be able to find yourself. In life and property there are a multitude of possibilities and creating happiness and fortune is probably a lot closer than you would think. A great line by property mogul Grant Cardone that I love is to “keep going, you never know when you are just one meeting, one connection, one project, ect. away from your goals.  This week's blog was a bit different than most, but this has been on my heart and mind recently and I felt the need to share it with all of you. 

This week's blog is going to be a shorter one.  I just wanted to put out a shorter post on some of my thoughts that came up after reflecting on the disaster that happened in Maui. Contemplating on the fires' effects after the last flame was extinguished. These words are also my attempt at understanding and piecing together a perspective to the situation that is not from a news station, just a mere man.  I lead with compassion in hopes that someday, it is possible for there to be optimism around the fires, and that all that was lost was not for nothing.  

I truly believe that after these horrible events Hawaii and its people are too resilient to be held down by the wildfires.  Instead, we will rise back up making Lahaina greater than it has ever been, in honor of those that we have lost.  The wildfires that took place in Maui, and Lahaina especially were terrible and currently we are at a loss for words for what happened to our Ohana there in Maui.  If you are looking to donate to get involved in relief here is a great link:

Hawaii community foundation Maui Strong Fund

These wildfires were incredibly unexpected and impactful, destroying hundreds of homes and taking numerous lives.  I personally have no clue how it has to feel to be a part of a disaster as powerful as this wildfire, but the stories that are surfacing every day of our brothers and sisters in Maui are both terrifying and inspiring. Inspiration and fear are drawn from hearing of folks having to jump into the ocean to seek refuge from the flames to the unity of the Hawaii community coming together to have Maui’s back.

To my Big Island friends,  it is in times like this that we as HUMANS are called to come together, it does not matter what differences we are led to believe we have. At the end of the day, we are all here on earth with the calling to love one another.  Is this not the root of the Aloha Spirit and what makes our state and home the best place to live? Spreading kindness and joy is our obligation, especially in times like the present when hope seems to be dwindling.  

The fires are incredibly tragic, and also serve as a reminder to cherish your time on earth.  We know not when or how our calling day is coming, and life is too short and fragile to live with anger and transgression toward others.  Let us lead with compassion and understanding.  Let us offer up what we can for our Maui ohana.  

To my Maui friends, we share in your sadness.  I feel as if the vast majority of us here on the Big Island have been shocked and deeply saddened by what has happened.  We offer up our thoughts, our prayers, and whatever else it is that you need at this time.  Hold strong, there is always a rainbow and the sun shines brightest after the storm.  These events make no sense, I know, but there is good that can come from such horrific events.

I have no answers to these, and I don’t expect anyone to have answers to them already at this point.  They do come to mind, however.  How do we rebuild better than before and bring back what was destroyed even better? Can we? How does this affect the already evident housing shortage here in Hawaii?  Where do we go from here, and what is the first step in healing as well as commemorating those who lost their homes, lives, and much more.