Each Monday, as Team Nakanishi and friends “Wine’d Down,” we invite local community vendors and leaders to join us for a bit of fun along with a ton of useful information.
Each week we consider how lending has been affected. We have seen lending parameters change and then change again. Beside Len Pagan from Academy Mortgage, Farris Etterlee from Finance Integrity has provided insights into changing requirements.
Buyers affected by furloughs are probably on hold until they return to work, but now is not the time to sit on the sidelines. Keep moving forward in anticipation of returning to work. The biggest affected buyer segment seems to be self-employed individuals who, at the moment, will be required to show 6 months of reserves to qualify.
Chris Grochkowski from Elite Inspection Services walked-us virtually through common issues he encounters as he inspects homes. Because home inspectors in the State of Hawaii are not licensed, he explained the importance of using a nationally certified and trained inspector.
My personal observation is that when the market was super busy, buyers were not as focused on repairs and renegotiations. They were just relieved to get their offer accepted. Today’s buyers are definitely using inspection results to re-negotiate repairs and pricing. An astute seller should get ahead of this by having their home pre-inspected. Offering the inspection, along with a completed list of repairs to the buyer will help them understand that property condition has already been factored into pricing. It’s one thing for the agent to explain this, and quite another to have proof in hand.
Nothing has really changed for showing agents. We are supposed to meet buyers at the property only after they have reviewed a virtual tour. We are not supposed to ride from house-to-house with buyers. Naturally, we are supposed to be masked, use hand sanitizers, and sterilize what we touch. And what about new listings?
Normally, we expect to see about 41 new listings in East Hawaii each week (condo and residential). This number has been hovering closer to 20-25 during the stay-at-home period. The lone exception was the last week in April when 38 condo and residential properties (not sure why) were listed. Most seem to be $350,000 or less.
We have several buyers planning buying trips in June. They assume the self-quarantine order will be lifted by then. With the economy opening back up, their assumption is likely a good one. For this reason, it seems reasonable to begin releasing new inventory in anticipation of an infusion of off-island buyers.
In the meantime, I’ll continue to re-cap weekly updates along with a re-cap from our “Wine’d Down” sessions, but the absolute best way to stay up-to-date is to join our Zoom session each Monday at 3 p.m. The last several were recorded, and a link can be sent to you. To add a little levity, we do start with a virtual Happy Hour with Ryan Kadota. Not only will Team Nakanishi be showcasing his weekly wine choice, the choice can be purchased in advance (with a Team Nakanishi discount) at Kadota Liquors. It’s a great way to sip and learn but feel free to BYOB. We will also be gifting a bottle of his selection to one attendee. As always, just email me or Ash to attend.
The transition from Stay-At-home to Safer-At-Home sure sounds like a move forward. As we do so, don’t forget to join us for a toast and more as we Wine’d Down Mondays at 3 p.m. See you there!