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Welome to Home Shoppe Hawaii’s Blog on Oahu Real Estate. Besides featuring great Oahu Homes for Sale, Kailua Real Estate and homes in Honolulu, Kaneohe, Hawaii Kai and the North Shore, and Oahu Luxury Homes, Home Shoppe Hawaii’s Blog reflects our passion for Hawaii Architecture and Hawaii Interior Design.

We are fortunate here, on Oahu, to have many beautifully designed and Historically Significant Homes, for sale and otherwise. We hope to show you some of these fine Oahu homes, spotlight Hawaii Architects and Interior Designers, from time-to-time, and keep you abreast of what is happening in Oahu real estate, Kailua Real Estate, Honolulu Real EstateKaneohe Real Estate and Hawaii Kai Real Estate, and North Shore Real Estate, as well as showcasing the Hawaii Lifestyle and some of the fun Activities, Places and Events on Oahu.

~Aloha~

Oahu Real Estate Blog

Entries by By Yvonne Ahearn (B), Realtor-Broker (275)

Saturday
Sep122015

About Manoa, Honolulu, Hawaii - Homes for Sale in Manoa Area

ABOUT THE MANOA NEIGHBORHOOD IN HONOLULU

Mānoa (/ˈmɑː.n.ə/, or informally /mɑːˈn.ə/) is a valley and a residential neighborhood of HonoluluHawaiʻi. The neighborhood is approximately three miles east and inland from downtown Honolulu and less than a mile from Ala Moana and Waikīkī at 21°18.87916′N 157°48.4846′WCoordinates21°18.87916′N 157°48.4846′W.

Similar to many Honolulu neighborhoods, Mānoa consists of an entire valley, running from Mānoa Falls at the mauka (inland-most) end to King Street. The valley receives almost daily rain, even during the dry season, and is thus richly vegetated – though the valley walls are often dry. Seeing rainbows in the valley is a common occurrence, and is the source of the University of Hawaiʻi at Mānoa sports team names, the Rainbow Warriors (for most men’s teams) and Rainbow Wahine (for the women).

The neighborhood is composed of private houses - most of which were built before the 1960s - and low-rise condominiums. In fact, this neighborhood has some of the most beautiful historic homes in Honolulu. It is the best place to look, in Honolulu, for exquisite Victorian homes, Craftsman homes, Tudors, Dutch Colonials, and other turn of the century home styles.

Mānoa is home to the University of Hawaiʻi at Mānoa, the flagship campus of the University of Hawaiʻi System. The University has several faculty and student residence areas in Mānoa.  Other educational institutions located in Mānoa include Mānoa Elementary SchoolNoelani Elementary SchoolPunahou SchoolMid-Pacific Institute, Saint Francis School, and a handful of small, private pre-schools.

The central shopping area of Mānoa is the Mānoa Marketplace which features a farmer’s market several days of the week. More recent development has seen housing on steeper parts of the Diamond Head side valley wall.

Mānoa stream begins at the base of Mānoa Falls and runs through the valley before joining Palolo stream to form the Manoa-Palolo drainage canal, which flows into the Ala Wai Canal. Floods caused by high rainfall have plagued the residents living along Mānoa stream. Most recent was on October 30, 2004 when Mānoa stream overflowed causing millions of dollars in damages to residential homes and University of Hawaiʻi at Mānoa buildings.

Mānoa is the site of the first sugarcane and coffee plantations in the Hawaiian Islands. John Wilkinson tended the first crops in 1825, brought on the ship HMS Blonde.[1]:34 Hawaiʻi is the only state in the United States that produces coffee commercially. For more history see coffee production in Hawaii.

Mānoa means thicksolidvastdepth or thickness in the Hawaiian language.[2] There is another valley named Mānoa on the north shore of Kauaʻi.

There are many legends associated with Manoa, one very well known legend is the story of Kahalaopuna. Kahalaopuna was born to Kahaukani and Kauakuahine. Kahaukani is the wind of Manoa and Kauakuahine is the rain of Manoa. Kakaukani and Kauakuahine were brother and sister, both born to Akaaka (the projecting spur of the Manoa mountain range) and Nalehuaakaaka (the lehua on the brow of the Manoa ridge). [3]

(The above is taken from Wikipedia under Creative Commons License)

THESE ARE HOMES FOR SALE IN MANOA, HONOLULU, OAHU, HAWAII NOW:

 

To arrange a private showing of one of the above homes, please call Yvonne Ahearn (PB) at 808-721-8088.

Sunday
Sep062015

Oahu Real Estate | Recent Sold Homes - Ewa Beach and Kaaawa Hawaii Homes

Home Shoppe Hawaii is busy selling Oahu real estate. We help clients all over Oahu buy and sell homes. Check out our latest sales in Kaaawa and Ewa Beach!!

51-002 Lau Place Kaaawa, HI $750,000 FS
Yvonne Jaramillo Ahearn (B) represented the Buyers of this 3BR/2BA property. 

oahu real estate

This remodeled home is situated direcetly across the street from the ocean and has beautiful unobstructed views. It also features a 2 car garage and large lanai.

Click to read more ...

Sunday
Aug022015

OPEN TODAY 8/2 2-5p - 1638 Laukahi St. in Honolulu (Waialae Iki) 

OPEN WED 8/5 9:30-11:30am & SUNDAY 8/9 2-5pm - VIDEO TOUR HERE This is a remarkable mid-century style Honolulu home by architect Owen Chock. Enjoy gorgeous ocean and Diamond Head views in this remodeled residence that still retains its charming midcentury feel. Vaulted ceilings, hardwood floors, multiple lanais, and a wood-burning fireplace are other features of this beautiful Waialae Iki view home, listed at $2,099,000 FS.

Besides a wonderful indoor-outdoor lifestyle, you’ll enjoy a gorgeous, new chef’s kitchen with custom cabinetry, high-end Electrolux and Frigidaire stainless steel appliances, stainless steel apron-front since, and of course, an ocean view. This home also features a spacious, master suite with stunning views, a lanai overlooking the swimming pool, and a new spa-like bathroom, with Grohe fixtures and double sinks, a shower with a view of Diamond Head, and a walk-in closet.

There are 4 bedrooms and 2 and 1/2 bathrooms in the upper part of the house. There is also a recreation room with another full bath, down by the sparkling, blue-tiled swimming pool, for a total of 5 possible bedrooms and 3.5 bathrooms. Plenty of room for family and friends in this 2,943 sq ft home!

This Honolulu home is on a private and peaceful rim lot of 10,705 sq ft, backing up to preservation land, in desirable Waialae Iki, close to Kahala Mall and other shopping and restaurants.

The exterior has been completely repainted, and features a Wayne Dalton garage door, and a reglazed Monier tile roof. There are also newly re-tiled slate lanais on the front and side of this lovely Honolulu home for sale. The beautiful, private, landscaped and sprinklered, muti-use outdoor space for gathering and entertaining, makes this home a complete package!

Video Tour  Open Wednesday August 5, 9:30-11:30am and Sunday August 9, 2-5pm

Complete Photo Gallery of 1638 Laukahi Street Waialae Iki Below.

Contact Listing Broker: Yvonne Jaramillo Ahearn (B) at 808-721-8088, for a private showing.

Saturday
Aug012015

Oahu Real Estate | More Sold Homes - Kaneohe and Honolulu July 2015

Oahu real estate is booming and July was a busy month for Home Shoppe Hawaii with 4 closings, totalling $3,111,000 in sales. We had two sales at Ka Malanai in Kailua and the two more detailed below:

KANEOHE SOLD HOMES

In Kaneohe we closed the following listing:

45-535 Luluku Road F-4 Kaneohe, HI 96744
List Price: $335,000; Sale Price: $340,000 FS
Co-Listed By: Yvonne Jaramillo Ahearn (B) and Ana Kuna (S) 

This was a 3 BR/ 1.5 BA Kaneohe condominium in Na Pali Gardens. Home Shoppe Hawaii obtained the highest sale price ever, for a non-ground floor unit in original condition, thanks to the power of Staging!!

HONOLULU SOLD HOMES

Our last closing in July was in Honolulu, in the Manoa Woodlawn Area

3312 Paty Drive Honolulu, HI 96821
List Price: $1,198,000 Sale Price: $1,140,000
Yvonne Jaramillo Ahearn (B) represented the Buyers

Here are some lovely photos of this 3 BR / 2 BA cedar home on an over 11,000 sq ft lot. This was part of the original Straub estate and features an anthroposophical garden.

 

Friday
Jul312015

Kailua Real Estate | Ka Malanai Sold Homes July 2015

KA MALANAI CONDOMINIUMS - KAILUA SOLD HOMES 

Home Shoppe Hawaii had two sales in Kailua, in July, at the new condominium homes, Ka Malanai, in the center of Kailua Town. The Ka Malanai condos are the first new construction condos in Kailua in over 20 years. They range from 1-3 bedrooms, priced from the mid-500Ks to almost $1M. More About Ka Malanai.

 

Click to read more ...

Thursday
Jul302015

Waikiki Condo with Diamond Head View - Newly Listed 2 Bedroom

Removed from the market in January, shortly after listing, we have just relisted this fabulous 2 bedroom 2 bath condominium home in Waikiki. At 989 square feet, this is one of the larger available floor plans of any 2 bedroom condominium in Waikiki. It also features a 110 square foot lanai. This condo is situated perfectly to capture the lovely cross-breezes from the ocean and is a great value at $509,000 FS.

See a slideshow below:

  

This Waikiki condominium is in a boutique building called Kealani. Kealani has only 4 units per floor, so all are corner units. This particular unit, #802, has both Ala Wai canal (from the dining room) and Diamond Head (from the lanai) views, and it is on the quieter and cleaner (away from Ala Wai Blvd) side of the building. Kealani has a swimming pool and both of the two elevators have been replaced within the past few years.

The spacious living area in this Honolulu condominium features maple laminate flooring. The kitchen and bathrooms are original in this 1970 building, so a new buyer may update to suit their own tastes. The master bedroom suite features two closets with mirrored doors, and is quite large. Storage is plentiful in this nicely laid out Waikiki condominium. There is also an additional storage room on the same floor as the condominium, which is shared with the 3 other owners on that floor. The parking space for this unit is also one of the best in the building. It is large, extra-long, covered, and in the secure section of the garage.

The location of the Kealani building in Waikiki is ideal, within a few blocks of Waikiki Beach, near the zoo end of Waikiki. There is plenty of shopping and great restaurants nearby. This well-kept building also has a very high owner occupancy, shows pride of ownership, and is on the VA Loan “Approved” list.

Please call Yvonne Ahearn (B) at 808-721-8088 to see this beautiful condominium today. 

Monday
May252015

Ka Malanai in Kailua - Kailua's Newest Condos for Sale

Ka Malanai is Kailua’s newest condominium complex. Actually, its the first new construction condo in Kailua in over 20 years. Ka Malanai is located in the heart of Kailua, close to shopping, dining, and other entertainment. Ka Malanai is located less than a mile from picturesque Kailua Beach. Prices are from the 500’s to $1M, for 1-3 bedroom condominium homes.

What Makes Ka Malanai great to purchase, to live or for investment? In my opinion, these are some of the great things about Ka Malanai:

  • Premier Kailua Location
  • Spacious, single-family home-like floor plans
  • Nice, higher end upgrades
  • Low mainenance fees (when you consider square footage of units)
  • All are Single-level units with elevator (and stair) access. No interior unit staircases.
  • Rents are currently very high there, much higher than the average for similar properties in other nearby buildings. Investors love this property.

 Call Yvonne Ahearn (B) 808-721-8088 to learn more and for assistance with the purchase of one of these beautiful homes. 

 

Thursday
Jan082015

Just Listed: Honolulu Real Estate | Diamond Head View Condo in Waikiki - 2BR/2BA- $489K FS

Home Shoppe Hawaii is pleased to announce our new listing, in Waikiki, at the rarely available Kealani condominium building, #802

This 2BR and 2 FULL BA Honolulu condominium home is large, 989 square feet interior with a 110 square feet tiled lanai. It has lovely maple laminate flooring inside and a beautiful view of Diamond Head from the lanai. 

diamond head view condo waikiki

Click to read more ...

Thursday
Jan012015

Just Listed: Pristine, Remodeled Kaneohe Bay View Condominium - $509K FS

Home Shoppe Hawaii is pleased to have just listed a gorgeous condominium home in Kaneohe’s beautiful Poha Kea Point IV.  SEE THE 3-D TOUR!!

This 2 bedroom, 1.5 bath home is not only immaculate, it is remodeled to the max, featuring a granite/stainless steel kitchen, fully tiled bathrooms and bamboo floors in the downstairs living areas.

This home also features a large slate-tiled lanai with lovely views of the Koolau Mountains and Kaneohe Bay.

Upstairs are two bedrooms and one full bathroom which is accessible from both the master and the hallway, for convenience.

 

The photos really do not do this property justice. 

One of the benefits of living at Poha Kea Point is the great amenities at this condominium. For example, there is a lovely pool, recreation and BBQ area.

Association and maintenance fees at currently $738/mo and cover water, sewer, and all common area maintenance.

 SEE THE 3-D TOUR HERE!!

Please call listing agent, Yvonne Jaramillo Ahearn (B) at 808-721-8088 for more information or to schedule a showing.

Thursday
Jan012015

Oahu Real Estate | Sold Homes in Kaimuki, Honolulu

The fourth quarter of 2014 was busy for Home Shoppe Hawaii and two of the homes we sold were in the Kaimuki neighborhood of Honolulu.

The first was a CPR home, built in 1939 and located at 1010A 8th Ave in Kaimuki, Honolulu. This was a gracious old plantation-style home with a daylight basement, with a total of 4 bedrooms and 2.5 bathrooms. This Honolulu home was in need of some upgrades, but was otherwise solid and presented a good opportunity for extra income, since the basement featured a separate entrance, as well as a wet bar. This home was listed by Yvonne Jaramillo Ahearn (B), and sold for $810,000 FS (with multiple offers) on 12/14/14.

The second Kaimuki home was located just down the street from the first at 1009 2nd Ave in Kaimuki, Honolulu. This was a cute old 1934 cottage with 2 bedrooms and 1 bath. This home also was in need of a rehab, but had very little structural damage for a home of its age. The Buyers of this home were represented by Yvonne Jaramillo Ahearn (B). This home was listed for $730,000 FS and sold for $680,000 FS on 11/21/14.

If you would like more information about either of these homes in Kaimuki or if you would like to purchase or sell any home in Honolulu, please don’t hesitate to contact Home Shoppe Hawaii at 808-721-8088. 

Wednesday
Dec312014

Oahu Real Estate | Sold Homes in Ewa Beach, Oahu

In the last quarter of the year, Home Shoppe Hawaii closed on three homes in Ewa Beach, Hawaii.

The most recent Ewa Beach home sale was a listing of Home Shoppe Hawaii in the Huelani subdivison in Ewa Beach. Huelani is a beautiful gated community with great amenities. This Ewa Beach home at 91-729 Launahele St #61 was 3BR/3BA with a large bonus room which could be converted to a 4th bedroom, if needed. This Ewa Beach home also featured high ceilings and a beautiful, large back yard with a gazebo. This Ewa Beach home sold for $613,000 FS on 12/5/14.

The second sale of the quarter was a new construction home in Ewa Beach, built by DR Horton in the Ewa Golf Villages Development. This home, located at 91-1752 Puhiko St in Ewa Beach is a 5BR/3BA home with Golf Course frontage, giving it the lot an incredible feeling of spaciousness, as well as enabling the Buyers to have a very nice view. Yvonne Jaramillo Ahearn (B) represented the buyers of this home, which sold for $690,767 FS on 11/26/14.

The happy Buyers of the above Ewa Beach home, enjoying their upstairs lanai which overlooks the golf course.

 

The last Ewa Beach home sold in 2014, was located at 91-982 Papapuhi Pl in Ewa Gentry Sun Terra. Home Shoppe Hawaii represented the Buyers of this home, also. This was a 5BR/3BA home, on a permimeter lot, and sold for $550,000 FS. This was a great value for such a large home and it closed 10/1/14.

If you are looking to purchase or sell an Ewa Beach home, please contact Home Shoppe Hawaii at 808-721-8088 for assitance.

Tuesday
Oct212014

Better to Buy or Rent in Hawaii? Oahu Real Estate

Is it better to buy or rent Oahu real estate?

My husband and I were faced with that question when we moved here in 2004.  Like other military reserve families, we intended to stay only for a few years… Until we fell in love, that is, and decided to never leave Oahu. We are certain that, for us, the decision to buy, over renting was a good one. This is true, even in light of the market bubble and slight downtown we had over the past 10 years, from which the market has now completely recovered. And we know many people who were in our situation who are now kicking themselves for not buying, or not buying sooner.

buy ir rent in hawaii

There are many factors to consider when determining the financial benefits of purchasing over renting. Some of the benefits of owning Oahu real estate are: potential appreciation, tax savings, and positive impact on credit scores, and also, the prospect that some day you will have the home paid off and be living for free!

A benefit of renting is the flexibility to be able to move easily, if it is not the right area for you or if your job changes.  Also, in some cases, you may be able to live in a nicer home for the same money out of pocket than you could if you purchased. On the downside, in a rental, you cannot usually make the place your own, with extensive home decor and improvements, but are under the landlord’s rules about what you can do and not do to your home. 

This calculator may help you to analyze the financial aspects of the rent or buy decision as to Oahu real estate.

BUY OR RENT CALCULATOR - This is a great tool!! Check it out.

In many cases, the decision to purchase a Hawaii home will win out over renting. If that is the situation with you, please don’t hesitate to contact Home Shoppe Hawaii to assist with your Oahu real estate purchase.

Yvonne Jaramillo Ahearn, Esq. (PB) 808-721-8088

Sunday
Oct192014

The Bright Side to All of This Rain ...

We hope that everyone is staying safe and dry in the effects of Tropical Storm Ana.
Saturday
Oct182014

Honolulu Real Estate | Just Listed: Historic Kaimuki Bungalow w Basement Apartment

This is a fabulous new listing in the bustling and desirable Kaimuki neighborhood of Honolulu. This charming 1939 Kaimuki bungalow features a total of 4 bedrooms and 2.5 bathrooms. There is an upper level home and a lower level daylight basement apartment (with separate entrance) in this dwelling, making it a great home for those who want lots or space, extra income, or a profitable investment property. All square footage is permitted.

honolulu real estate

Click to read more ...

Saturday
Oct182014

Kailua Real Estate | Just Sold in the Koolaupoku Neighborhood in Kailua $893K FS

Home Shoppe Hawaii closed escrow, September 5, 2014, on this charming Kailua home at 565 Kaimake Loop. The Kailua real estate market is hot and great homes go fast, so Home Shoppe Hawaii’s clients were fortunate to purchase this Kailua home in a great price point AND with 4 bedrooms! If you know Kailua real estate, you also know what a great area this Koolaupoku neighborhood is. Many of the homes here are valued at well-over $1M, making this purchase by my clients a fabulous deal!

Photo courtesy of HiCentral MLS.Photo courtesy of HiCentral MLS.This home was 4 bedrooms and 2 full bathrooms, with over 2,200 square foot of living space and 160 square feet of lanai. It featured three living/dining areas, great outdoor spaces with covered lanais both at back and front, and a two-car garage with workshop area. This home is also less than a mile from the spectacular white sands and turquoise waves of Kailua Beach.

If you are interested in purchasing a home in Kailua, please contact Home Shoppe Hawaii Principal Broker, Yvonne Ahearn, at 808-721-8088.

Saturday
Oct182014

Hawaii Kai Homes | Waterfront Townhome Sold for $735K FS

Home Shoppe Hawaii recently sold its listing at Hale Makani Kai in Hawaii Kai for a great price! This Hawaii Kai home at 427 Kawaihae Street #104 was listed at $700K FS and sold for $735K FS, in its first few days on the market, with multiple offers. This was a great looking 3 bedroom / 1.5 bath townhome on the water, with its own yard. We owe the fabulous price not only to the hot market but to effective staging and the use of HD Video and professional photography.

Home Shoppe Hawaii uses professional video and photography for ALL its listings no matter the price point! Here’s a sample:

To list your home with Home Shoppe Hawaii and gain the benefit of its comprehensive marketing tools, which include High-Definition Video, please contact Yvonne Ahearn, Principal Broker at 808-721-8088.

Saturday
Oct182014

Kailua Real Estate | Just Sold in Ka Malanai New Construction Condos

Home Shoppe Hawaii is pleased that we have recently sold one of the lovely new Ka Malanai condominiums in Kailua, located at 497 Kailua Rd #2204, Kailua 96734. Home Shoppe Hawaii REALTOR-ASSOCIATE, Ana Kuna, represented the Buyer in this purchase of Kailua Real Estate. This Kailua property sold for $805,795 Fee Simple.

These Kailua condos range from 1-3 bedrooms and have lovely finishes and updrades available. Our client purchased a 2 bedroom, 2 bath unit in Ka Malanai with 1,287 sq ft and with a 116 sq ft lanai. 

Thiis is the floor plan. It is the Wana’ao Model.

If you have interest in purchasing at Ka Malanai, please contact Home Shoppe Hawaii at 808-721-8088 

PLEASE NOTE: We are Buyer’s agents for this project and do not represent the developer DR Horton. Representation is at no cost to you and does not change the price you pay for a purchase of Ka Malanai condominiums.

Friday
Oct172014

Oahu Real Estate | Sold Homes in Mililani and Ewa Beach 

Home Shoppe Hawaii Oahu REALTORS are busy around the entire island selling Oahu homes. See some of our recent sales of Ewa Beach and Mililani Real Estate on Oahu:


91-982 Papapuhi Pl Ewa Beach, HI 

List Price $549,900 / Sold for $550,000

This 5BR-3BA home is in Ewa Gentry Sunterra and closed 8/22/14. It featured a bedroom and full bath on the main floor, privacy due to golf course frontage, and was in great, move-in ready condition. Home Shoppe Hawaii represented the Buyers of this lovely home.

Image Courtesy of HiCentral MLS.

95-1217 Laipu St #17, Mililani 96789

List Price $715,000 / Sold for $695,000

This 3BR-2.5BA home is in Mililani Mauka and closed 6/2/14. It featured numerous upgrades including a PV system, plantation shutters, a convection oven and induction cooktop, rain gutters, and a spacious lanai. Home Shoppe Hawaii REALTOR-ASSOCIATE, Ana Kuna represented the Buyers of this lovely home.

If you are interested in a home anywhere on Oahu, please contact Home Shoppe Hawaii, we’d be happy to help!

~ Aloha. Yvonne Ahearn, Principal Broker 808-721-8088.

Monday
Sep012014

Oahu Real Estate Broker Featured on HGTV House Hunters Kailua Real Estate Episode

Kailua REALTOR and Principal Broker of Oahu Real Estate Brokerage, Home Shoppe Hawaii, Yvonne Ahearn, and her clients, Alex and Eliza Olaru, are being featured on the September 1, 2014 episode of HGTV House Hunters, shown at both 7pm and 10pm HST.

house hunters lanikai kailua

The House Hunters clients looked at real estate in Kailua, Oahu (a beach community 14 miles from Honolulu) including a Lanikai beach home and a Kailua home on the Kawainui Canal, as well as a fabulous view home in Kaneohe’s Lulani Ocean area. The Olaru’s budget was about $1.75 million. The episode was produced by the Laura Patterson of Pie Town Productions. Camera, sound, and production assistance by Jeff Santos and Dominic Pipia III, and Christine Kaaloa.

house hunters kailua lanikai showLeft to Right: Dominic Pipia III, Jeff Santos, Alex Olaru, Eliza Olaru, Laura Patterson, Yvonne Ahearn, and Christine Kaaloa. Photo by Diane Pizarro. The Kailua home they toured was in the Koolaupoku neighborhood of Kailua and was at 833 Kainui (Duck) Road, on the Kawainui Canal. It was a large, two-story, new construction home, with a gourmet kitchen full of high-end applicances, and had beautiful spacious rooms and bathrooms. Because the Olarus also live with Eliza’s parents, as well as their two sons, the attached apartment in this home was especially attractive, as was the huge interior square footage. It featured an outdoor kitchen and screened lanai, with beautiful Kailua hillside and canal views. This home was listed for $1.75 million. This home had many of the modern features that Alex was looking for and was nearest to Kailua Beach where Alex prefers to spend time body boarding, and where their sons paddle outrigger canoes.

Here are some photos of this beautiful Kailua home:

house hunters kailua homePhotos courtesy of Photo Courtesy of HICentral MLS and Suzy Kruppa, listing realtor.

house hunters kailua homePhotos courtesy of Photo Courtesy of HICentral MLS and Suzy Kruppa, listing realtor.

house hunters kailua real estatePhotos courtesy of Photo Courtesy of HICentral MLS and Suzy Kruppa, listing realtor.

house hunters kailua real estatePhotos courtesy of Photo Courtesy of HICentral MLS and Suzy Kruppa, listing realtor.

The Lanikai, Kailua home featured was, of course, in the Lanikai neighborhood of Kailua and was located in the interior of the Lanikai loop. Since it was on Haokea street, this home was immediately adjacent to one of the best beach accesses in Lanikai, making a quick morning stroll on the beach a breeze. This home was competitively underpriced at $1.5 milion and featured an older, but high-end kitchen, a huge 14,000+ square foot lot, and separate cottage. The downside to this single-level plantation style home is that 3 of the four bathrooms in the main house were in need of a remodel. This home was built originally in the 1930’s so had some of the beach house charm, like french doors, that Eliza was looking for. It also was closest to Eliza’s favorite swimming beach, Lanikai.

Here are some photos of this charming Lanikai beach home:

house hunters lanikaiLanikai Beach Cottage and Back of House as seen from huge yard. Photo Courtesy of HICentral MLS and Listing Broker, Myra Brandt, Kahala Assoc.

house hunters kailuaLanikai Beach. Photo Courtesy of HICentral MLS and Listing Broker, Myra Brandt, Kahala Assoc.

house hunters lanikaiLanikai Beach House Kitchen. Photo Courtesy of HICentral MLS and Listing Broker, Myra Brandt, Kahala Assoc.

The last home shown on the House Hunters episode was something that Home Shoppe Hawaii’s broker thought might appeal to both buyers, Eliza and Alex. Located about 10 miles away, in the community of Kaneohe’s Lulani Ocean area, this home had stunning views of Kaneohe Bay from two levels. The home had many of the plantation cottage type details that Eliza liked, but was completely remodeled and featured the upgrades that Alex preferred. The home had deeded ocean access, just across the Kamehameha Highway, though the beach did not really compare to either Kailua Beach or Lanikai Beach. This home was listed at $1.75M.

Here are some photos of this stunning Kaneohe view home:

house hunters on oahuPhoto courtesy of Photo Courtesy of HICentral MLS and Listing Agent Diane C. Pizarro, Coldwell Banker Pacific Properties.

house hunters hawaiiPhoto courtesy of Photo Courtesy of HICentral MLS and Listing Agent Diane C. Pizarro, Coldwell Banker Pacific Properties.house hunters kailua kaneohePhoto courtesy of Photo Courtesy of HICentral MLS and Listing Agent Diane C. Pizarro, Coldwell Banker Pacific Properties.Which amazing house did this House Hunters Kailua couple pick??? Watch the episode tonight and find out!!

OTHER ARTICLES ON THIS TOPIC: 

Home Shoppe Hawaii broker, Oahu couple to be featured on HGTV’s ‘House Hunters’

Do You Want To Be a Star on HGTV’s House Hunters?

 

Thursday
Aug212014

Who Chooses the Title & Escrow Company in Hawaii? How to Choose an Escrow Company in Hawaii

The issue of who chooses a Hawaii title & escrow company or officer, Buyer or Seller, comes up a lot when selling Hawaii real estate. Many clients do not care who they use as title & escrow company. Sometimes, clients have a preference. Often, REALTORS have a strong preference as to which title company and escrow officer are used. Frequently, Seller’s agents will claim that it is their “right” to choose the title company in Hawaii.  I have seen some REALTORS will even argue over this to the detriment of their clients. But whose choice, really, is the escrow and title company which is used for a Hawaii real estate transaction and why?

Responsibilities of Title and Escrow.

First, let’s look at what these settlement service providers do. Typically, you will have an escrow officer who provides escrow services. This includes holding the funds for the Buyer, keeping a timeline of the transaction in accordance with the purchase contract, arranging the drafting of the deed by an attorney, working with the lenders on both sides, ensuring that the settlement statements are prepared correctly, signing of the closing documents, recordation of the deed, and many other responsibilities in coordination of the closing. The escrow officer is neutral and takes instruction from both parties on behalf of each of the respective parties. An escrow officer has independent fiduciary responsibility to each party in the transaction and should never disclose confidential information of or provide an advantage to one party over the other, though they will communicate regularly with both over the course of the transaction.

In Hawaii, the title and escrow company will typically also provide title services through a different department than escrow, though they work together. They do the title search on the property, review the survey and order title insurance for the parties so that Buyers can be assured that the Seller has authority to convey the property and that the property is being properly conveyed to the Buyer. For title insurance, there is frequently both an owner’s policy and a lender’s policy, which is required when the Buyer obtains a loan. Title officers and the lawyers in the title department also will review the survey and public records to identify encumbrances on the property, and exceptions to the title insurance policy.

Costs of Settlement Services.

The escrow side of the company and the title side of the settlement services company will charge separate fees to the Seller and Buyer in a Hawaii real estate transaction for what they do.

In Hawaii, it is customary that the costs of the title insurance (owner’s policy) are split 60/40 between Seller and Buyer.  The Lender’s policy is paid solely by the Buyer.  It is also customary that the costs of escrow are split 50/50 between the Buyer and Seller. While this particular breakdown of settlement costs is the custom in Hawaii, who pays these costs may certainly be negotiated between the parties.  

I recently did a comparison between two companies where there was about a 10% difference in their basic price. Further, sometimes the price for these services will also vary because the Seller has recently used the same title company with the property. In this case, the Seller or Buyer may be getting a discount for using the same company again, which, by default, is passed onto the Buyer who shares in the costs. Some escrow/title companies give discounts for investor buyers and other factors, which will also make a difference. Since the prices from company to company will vary, price very well could be a legitimate consideration in the choice of escrow company.

So you might assume that it would make sense that both parties would simply want to use the least expensive company…. right? Well, not really.  This seems to be a pretty irrelevant concern for a lot of people and most Sellers and Buyers do not even ask about these prices.

The Service Factor.

The reality is that, like in most other service-based industries, not all companies and escrow officers offer the same level of service.  Therefore, to many, price may be only one small consideration. After a spending time working with various escrow companies and officers, REALTORS usually develop a preference for one company or the other, without regard to price.  Agents and Brokers will often focus more on the level of service an escrow officer provides and the level of accountability the company provides in taking care of their clients.

There is one national title/escrow company (with offices here in Hawaii) that I will refuse to use because it has not stood by my clients after a transaction and, as a result, my clients experienced a significant monetary loss.  I’ve had identical situations with two different clients and two other companies, where both of these other companies stood by my clients and absorbed the loss themselves. The same company I first mentioned, which I will always try to avoid using, has also been a party to ethical violations that I witnessesed but could not prove after the fact. 

I definitely have a preference as to escrow company(ies) and escrow officers. As a REALTOR, I look for impeccable ethics, a lack of bias, accountability and service to my clients, above all else, when choosing an escrow company/officer.  As a result, I may prefer that a certain company is used because of these items and may refer my clients accordingly.

Choice of Escrow Company and RESPA.

Historically, escrow/title companies had offered incentives and freebies to REALTORS who referred business to them. However, the Real Estate Settlement Practices Act (RESPA) is a law, which, among many other things, has outlawed these practices. This law is intended to help ensure that consumers have a choice and are not simply referred by REALTORS to companies (including both lenders and settlement services companies), because of a REALTOR’S own self-interest.

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any “thing of value” in exchange for referrals of settlement service business involving a federally related mortgage loan. Essentially, an escrow company cannot give things of value to REALTORS with any agreement or even and unwritten “understanding” that business will be referred.  

“Thing of value,” is very broadly interpreted, and includes all types of compensation such as monies, discounts, salaries, commissions, fees, gifts, gift cards, prizes, and preferential bank rates. For example, a bank cannot enter real estate agents in a pool to win a trip to Las Vegas if qualification for the contest is a certain number of referrals. Also, an escrow company can’t hold a special cocktail party for its top referring REALTORS only, but they could, however, invite all REALTORS to a such a reception, as a general marketing expense, without regard to whether business has ever been referred.  And, contrary to popular belief, there is no legally OK dollar value exception, such as under $25, for thank you gifts for referrals from REALTORS to lenders and title companies.

RESPA also prohibits escrow companies from providing things to REALTORS for free that would normally be a REALTOR cost of doing business, such as marketing and CE classes.  However, escrow companies can provide things that are normally a business expense for REALTORS when they also participate - for example,  mailing of  joint marketing materials to REALTORS, where both parties pay a reasonable share of the expenses.  It is clearly illegal for marketing services to be given for free.

Title Company as “Seller’s Choice”.

In some localities, but not Hawaii where it is a 60/40 cost split, it is customary that 100% of the owner’s title insurance is paid by the Seller.  In these areas, it is also frequently customary that the Seller would pick the title company to use, as it is paying for the service. This is not prohibited by RESPA.

In Hawaii, licensed agents will often see in the Agent Remarks section in MLS where “Seller requests officer/company xyz” for title/escrow. I’ve called on some of these in the recent past and have been told that the Seller wants to stick with “xyz” because they did all of their marketing, provided food for their open house, and/or already provided title work.  If these things have been provided free of charge, technically, this is a violation of Article 8 of RESPA to insist on using “xyz” because of these things.

Use of “xyz” or “abc” is totally negotiable by either party and neither “xyz” or “abc” should have provided services free of charge in exchange for the Seller’s REALTOR using them for settlement services in a transaction. If the REALTOR did already pay money for the services they mention, since the services were paid for, there should be no actual or moral obligation or implicit “understanding” that a REALTOR would use the title company because of the marketing or other services.

Of note also is that Section 9 of RESPA also requires that a Buyer not be forced to purchase title insurance from any particular title company. As a result, courts have held that if a Buyer pays for the owner policy, then the Seller cannot legally condition the sale of the property on the Buyer purchasing the owner policy from a particular title company. Rather, the Buyer would get to pick the title company or there is a violation of RESPA. Further, the Buyer cannot be forced to buy the lender policy from a particular company. See more in next Section below.

Title Company as “Buyer’s Choice”.

Here in Hawaii, Buyer and Seller share the costs of the owner policy, so it is a little different, than the facts above where the court considered a Buyer paying for the entire owner policy. However, in my opinion, there is still a pretty good argument that settlement services should naturally be chosen by the BUYER of Hawaii real estate, even if the Seller pays for the ENTIRE owner policy. There are a few reasons for this.

First, as mentioned, RESPA Section 9 prohibits a Buyer from being forced to use a particular title insurance company, which creates the following issues:

a. The Buyer (when not paying cash) is normally required to purchase a lender’s title insurance policy and may also be required to purchase title endorsements required by a lender. If lender’s coverage is provided by the company issuing the owner’s title policy, the cost is only a few hundred dollars, as an add on. If the Buyer purchases a lender’s title policy from a company other than the one issuing the owner’s title policy, he must pay the full premium which will be several hundred to several thousand dollars depending on the price of the property. Is the Buyer then effectively “required” by economic necessity to use the title company selected by the Seller for the lender’s policy? 

b. There is also the fact that in a typical closing the only party writing a check is the Buyer. Wouldn’t the Buyer be able to reasonably argue that even though the Seller is paying for the title insurance, that the cost was factored into the sales price which means that the Buyer is actually paying for the owner’s title policy premium? If the Seller did not have to pay the owner’s title policy premium, would he have been willing to deduct that cost from the sales price of the property?  The answer is most likely a yes.

I don’t have definitive answers to these questions, so the conservative position, especially when you have a Buyer who is firm about which title company will be used, is to allow the Buyer to select the title company. This is not necessarily the same as picking the closing agent/escrow officer, however. (NOTE: Closing services and title insurance can be provided by two different companies.) Conversely, if the Seller insists upon directing the transaction to a particular title company, it would be prudent for the Seller to agree to pay the premiums for both the owner’s and lender’s title policies. This is what is commonly done with Bank REOs where the bank/Seller insists on a particular title company. To not do so can be a violation of RESPA.

Second, because the title insurance is intended to protect the Buyer, it only makes sense for the Buyer to pick the service provider. Even in escrow, the company is holding the Buyer’s funds and not the Seller’s. Sellers receive their funds at closing and are paid and gone, typically, before some of the serious title problems may be revealed. Further, as the Buyer receives the coverage, they are the ones who will make the claim and work in the future with the title and escrow company.

To summarize, regardless of why a Listing REALTOR wants to use an escrow company, the choice of settlement services provider is totally negotiable and is not automatically Seller’s choice.

Factors like quality of service, ethics, and price may be considered, but whether a company has provided marketing materials, food, or other things of value should NEVER be considered as a reason for making a referral or insisting upon a certain company/officer by any REALTOR.

Conservatively, Seller’s brokers in Hawaii should go with the choice of BUYER for title and escrow, as RESPA prohibits a Buyer from being forced into a particular company for title insurance, unless Seller is willing to pay for both the owner’s and lender’s title insurance policies.

All of this said, a Seller agent will often view an offer using the requested escrow officer as more attractive than an offer that does not use the requested escrow officer. So if a Buyer is trying to be more competitive and does not have strong feelings either way about the choice of escrow/title, it might be in the best interest of your Buyer client to use an escrow company specificed in the Seller agent MLS remarks.