Howard Dinits RS ABR
RE/MAX Resort Realty

http://www.EasyMauiRealEstate.com

Looking for a Kihei Buyer's Agent?
Maui Real Estate Agent
Wailea Buyer's Representative
Acredited Buyer's Representative
Certified Residential Specialist
hawaii foreclosure specialist
REO and Short Sales

Do not Buy Real estate without hiring Howard Dinits RS ABR CRS

ABR® vs. Buyer's Rep: A REALTOR® Designation

A buyer’s representative (or simply buyer’s rep) is a licensed real estate professional who represents prospective homebuyers in their property transaction. If you’ve formalized an agency relationship, typically by signing a buyer’s rep agreement with a buyer’s rep, you can expect him or her to:

• Understand your specific needs and wants, and locate appropriate properties.
• Assist you in determining how much you can afford (pre-qualify your mortgage).
• Preview and/or accompany you in viewing properties.
• Research properties, to identify any problems or issues you should consider.
• Advise you in formulating your offer.
• Help you develop your negotiation strategy.
• Provide a list of potential qualified vendors (such as inspectors, attorneys, lenders, etc.) for other related services that may be needed.
• Keep track of all the details throughout the entire transaction—to closing and beyond.

In other words, a buyer’s rep should make your homebuying experience go as smoothly and successfully as possible.

But not all buyer’s reps are equal. A buyer’s rep who has earned the Accredited Buyer’s Representative (ABR®) REALTOR® designation has made an extra effort to raise the bar, with additional training and experience in serving you, the homebuyer. If you work with an ABR®, you can feel more confident that you’ll receive the highest level of buyer-representation services.

http://www.EasyMauiRealEstate.com
Howard Dinits RS ABR
877-434-6487
RE/MAX Resort Realty

ABR® (Accredited Buyer's Representative)
The ABR® designation is the benchmark of excellence in buyer representation. This coveted designation is awarded to REALTORS® who meet the specified educational and practical experience criteria, by the Real Estate Buyer's Agent Council (REBAC) of the National Association of REALTORS®.

Why should you look for the ABR® designation before looking for a home? These three letters after a REALTORS® name tell you that you’ll be working with someone committed to your best interests, someone who has both made education a career priority, and has also demonstrated the experience needed to provide the finest in buyer representation.

I am often asked where should I stay. Or what are the fun thing to do in Kihei, Wailea, Maui.

Here is a list I am sure you will find some options that you like.

In addition to striving to be the Best Real Estate Agent on the Valley Island, Hawaii. Howard Dinits is also an innovator with the first Maui Real Estate Agent Site with an iPhone application allowing you to search for REO's, Bank Owned Properties, and Foreclosures with your iphone for Maui Island Real Estate, Homes in Kihei, Wailea, Kahului, Wailuku and Lahaina all can be searched on your iPhone.

In the near future http://www.EasyMauiRealEstate.com will have aps for the new Droid and Blackberry mobile phones

Maui Real Estate Sales Hawaii Homes Sold

Hawaii real estate sales

For the week of Sept. 28-Oct. 2

What is a Short Sale?

According to wikipedia.

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.^[1] It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower.

Process

In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than foreclosure or continued non-payment would entail. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have a pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal or Broker Price Opinion (abbreviated BPO or BOV).

Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the 2009 foreclosure crisis, they are now more willing to accept short sales than ever before. This presents an opportunity for "under-water" borrowers who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure as a result.

Additional parties

Multiple levels of approvals and conditions are very common with short sales. Junior lien-holders - such as second mortgages, HELOC lenders, and HOA (special assessment liens) - may need to approve the short sale. Frequent objectors to short sales include tax lien holders (income, estate or corporate franchise tax - as opposed to real property taxes, which have priority even when unrecorded) and mechanic's lien holders. It is possible for junior lien holders to prevent the short sale. If the lender required mortgage insurance on the loan, the insurer will likely also be party to negotiations as they may be asked to pay out a claim to offset the lender's loss in the short sale. The wide array of parties, parameters and processes involved in a short sale makes it a relatively complex and highly specialized type of real estate transaction. Unsurprisingly, short sale deals have a high failure rate and often do not close in time to prevent foreclosure when they are not handled by a knowledgeable and experienced professional. The best sources of knowledge and expertise in short sales are short sale negotiators, loss mitigation specialists, and real estate lawyers who specialize in short sale.

Consent

Short sales are different from foreclosures in that a foreclosure is forced by a lender, whereas both lender and borrower consent to a short sale. However, this consent may change at any time, and negotiations may be ongoing between the lender and borrower even while the short sale is on the market. The borrower may decide to remain and refinance their house, or become obstinate and force foreclosure. The bank may renege as well if they decide to stick with the current borrower, or if they disapprove of the sale price. Any short sale contract includes a contingency where the bank must approve the sale.

Changing consent can present a perilous situation for potential buyers. It can waste considerable time and money for a prospective buyer who anticipated a sale. Typically, deposits with the bank will be refunded but money for paid inspections or other services cannot be.

There are several defenses against this. If the seller has moved out of a property, that is a clue that they have no intention of staying or negotiating further with the bank. "Bank Approved Short Sales" are advertised by real estate advertisements, indicating that a real estate broker has verified the selling bank's position. This still does not guarantee acceptance, and it often does not take junior lien-holders into account, but it is better than situations where the bank holding the mortgage has only been lightly involved in the borrower's decision.

Credit implications

Short sales are a type of settlement, and they adversely affect a person's credit report, though the negative impact is typically less than a foreclosure. Like all entries except for bankruptcy, short sales remain on a credit report for seven years. Depending upon other credit information, it is typically possible to obtain another mortgage 1-3 years after a short sale.^{[citation needed]}

While lenders sometimes forgive the remaining loan balance, other lien-holders likely will not. Further, it is common for a lender to omit updating mortgage balances zero balance after a short sale. However, willfully misrepresenting information on a credit report can constitute libel in some jurisdictions, and lenders may be sued in civil court for engaging in this behavior.^{[citation needed]}

Business

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults.

See also

• Mortgage Forgiveness Debt Relief Act of 2007 - U. S. legislation affecting short sales of residential property.
• Deed in lieu of foreclosure

Extending Homebuyer Tax Credit Best Tool for Sustaining Maui, "Valley Isle"  Housing Recovery

The best available tool for sustaining the still-fragile Kihei, Kahului, Wailuku, Wailea and Lahaina housing market is the $8,000 homebuyer tax credit, and it is essential that Congress extend the credit into 2010, the National Association of Realtors (NAR) testified at a hearing of the U.S. House Small Business Committee in October. Keywords, extending, homebuyer, tax, credit, housing, recovery, maui, hawaii, island, real, estate.

It’s increasingly likely that Congress will extend and expand the popular home buyer tax credit, which will expire at the end of this month.

NAR Regional Vice President Joseph L. Canfora, also told the panel that a major stumbling block for consumers has been the implementation of appraisal processes spurred by the Home Valuation Code of Conduct (HVCC), which is causing delays in closings, as well as cancelled sales that led to artificially low existing-home sales numbers for August, reported last month.

"The credit is working," Canfora said, pointing out that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. Further, the credit has provided a huge indirect benefit to local governments, shoring up property tax bases in particularly hard-hit areas.

Further, NAR data has estimated that every home purchase pumps into the recovering economy about $63,000 – the equivalent of one new job added to the employment figures.

But, Canfora said, the threat of more foreclosures coming to the market caused by mortgage rate resets, job losses, and by lender’s unburdening themselves of additional properties to take advantage of today’s more stabilized prices could disrupt the fragile recovery.

In a "normal" market, optimal housing inventory is about six to seven months, he said. When the tax credit was enacted in February, inventory was 9.1 months. Because of the spurt in homes sales since then due to the tax credit, inventory declined to 8.2 months in August, closer to "normal" than at any time since 2007.

In urging Congress to extend the credit, Canfora said, "The more robust the credit and the greater its duration, the greater the chance that the housing market can perform its traditional role of helping the economy move out of a recession."

"But problems arising from the implementation of the HVCC may reverse the market’s positive momentum at a time when the real estate industry is just starting to show signs of a rebound in many markets," Canfora said. According to an NAR survey of its members, approximately 40 percent of Realtors report having lost at least one sale since May 1 because of appraisal problems due to the HVCC rules. Twenty percent say they have lost more than one sale.

The culprit, he said, was that appraisal management companies, which have gained prominence because of the HVCC, have assigned appraisers to areas where they lack geographic competence. That has resulted in unreliable appraisals. It is not uncommon that second and third appraisals have to be done to ascertain fair market value. Appraisal fees have also risen and are being passed on to consumers.

Both Fannie Mae and Freddie Mac have issued guidance on appraisals, but NAR is calling upon the mortgage giants and the Federal Housing Administration to issue a consolidated guidance that should be codified and incorporated into the existing policy to ensure proper information on appraisals is available to the real estate industry.

FHA Commissioner David H. Stevens has asked FHA staff to explore that recommendation with Fannie and Freddie. Last month, Stevens reaffirmed FHA appraisal policy, taking into consideration the unintended consequences that have burdened Fannie and Freddie, and issued two Mortgagee Letters focusing on appraisal changes. The policy reaffirms appraiser independence and geographic competence.

The FHA announcement also included timely steps to protect taxpayers: implementing credit policy changes to enhance risk management; hiring a chief risk officer for the first time in the agency’s history; and shifting responsibility for mortgage brokers away from taxpayers to the lenders who use mortgage brokers in Kihei, Kahului, Wailuku, Wailea and Lahaina.

Canfora told the committee that FHA has performed remarkably well through the housing crises, compared to Fannie and Freddie. "That’s because FHA has never strayed from the sound underwriting and appropriate appraisals that have traditionally backed up their loans."

"The reason the FHA capital reserve ratio fell below 2 percent had nothing to do with FHA’s current business activities. It is simply a reflection of falling housing values in their portfolio." He cited an FHA announcement that a 2009 audit will show that even if FHA does nothing, the cap reserves are expected to rise back to that required level within a few years. He also pointed out that FHA total reserves are not in as dire straits as some have reported since the cap reserve fund is not the only FHA reserve fund – FHA also has a separate cash reserve that is higher that it has even been – and the combined assets total $30.4 billion.

extending, homebuyer, tax, credit, housing, recovery, maui, hawaii, island, real, estate

Maui leads in foreclosures for the state of Hawaii

RealtyTrac ranks Hawaii 15th among states for overall foreclosure activity

By Allison Schaefers

POSTED: 01:30 a.m. HST, Oct 15, 2009

Maui's foreclosure rate surpassed the national level in September and activity on Maui and Kauai overtook the nation during the third quarter, according to data released today from RealtyTrac.

Last month, RealtyTrac ranked Hawaii 15th among states for foreclosure activity. Across the state, 969 properties -- the second-highest number of the year -- received foreclosure notices.

The number of foreclosures rose nearly 12 percent from the previous month and 63.1 percent from the same month last year.

On a whole, Hawaii's September foreclosure rate, one per every 523 households, was better than the national foreclosure rate of one in every 372 households, Blomquist said. However, Maui's foreclosure rate rose to one per every 255 households, he said.

On a quarterly basis, Hawaii's foreclosure rate was one in every 185 households, which compared favorably to a national rate of one per every 136 households, Blomquist said. Nonetheless, foreclosure rates on Maui, which rose to one per every 111 households, and on Kauai, which rose to one in every 85 households, raised alarm, he said.

"To me, it's a sign that the national problem is becoming Hawaii's problem and that it's not limited to the mainland," Blomquist said

One of the reasons for the gain could be Hawaii's high percentage of second-home, resort and investment activity, Blomquist said. As many as 46 percent of all Hawaii foreclosures through April, the most recent measure, were at non-owner-occupied properties, he said.

"That's higher than the national average," he said, adding that 30 percent of foreclosures nationwide through April involved non-owner-occupied properties.

Investor activity was plentiful when Maui's median price shot above $700,000 during Hawaii's last housing boom, said Keone Ball, principal broker at Carol Ball & Associates in Kahului, which RealtyTrac ranked No. 8 among Hawaii ZIP codes for the most foreclosure activity in September.

Kihei, Lahaina and Wailuku were also in RealtyTrac's top 10 list of high-foreclosure ZIP codes.

"Since Maui's median price led at the peak, it only makes sense that it would be highest among foreclosure rates as loans come due and people continue to lose jobs," Ball said, adding that investor activity has fallen by more than 30 percent since the boom.

Still, RealtyTrac data show that growing foreclosures are not just contained to Maui or Kauai. Blomquist and other real estate watchers say Hawaii foreclosures will continue to increase as home equity falls, unemployment rises, loans are reset, and lenders fail to promptly approve short sales and modifications.

"There are so many things pointing to continued high levels of foreclosures," Blomquist said.

The rise in foreclosures is lowering Hawaii's real estate values, prompting more problems, said John Riggins, owner of John Riggins Real Estate in Kapolei, a region that ranked No. 5 on RealtyTrac's September list of high foreclosure ZIP codes.

"As neighborhood prices drop, some sellers will be forced into short sales or foreclosures," Riggins said. "The problem is self-perpetuating."

Maui's foreclosure rate surpassed the national level in September and activity on Maui and Kauai overtook the nation during the third quarter, according to data released today from RealtyTrac.

GEORGE F. LEE / GLEE@STARBULLETIN.COM

John Riggins Real Estate is a business that deals in distressed properties. One of Riggins' clients, a military couple, has had to put their home on the market as a short sale so that they are eligible to relocate.

View Large Version >>

Last month, RealtyTrac ranked Hawaii 15th among states for foreclosure activity. Across the state, 969 properties -- the second-highest number of the year -- received foreclosure notices.

The number of foreclosures rose nearly 12 percent from the previous month and 63.1 percent from the same month last year.

For those that thought Hawaii had skipped the ramp-up of foreclosures that has plagued the U.S. mainland for a couple of years, the latest statistics tell another story, said Daren Blomquist, communications manager for RealtyTrac, a foreclosure marketplace.

On a whole, Hawaii's September foreclosure rate, one per every 523 households, was better than the national foreclosure rate of one in every 372 households, Blomquist said. However, Maui's foreclosure rate rose to one per every 255 households, he said.

On a quarterly basis, Hawaii's foreclosure rate was one in every 185 households, which compared favorably to a national rate of one per every 136 households, Blomquist said. Nonetheless, foreclosure rates on Maui, which rose to one per every 111 households, and on Kauai, which rose to one in every 85 households, raised alarm, he said.

"To me, it's a sign that the national problem is becoming Hawaii's problem and that it's not limited to the mainland," Blomquist said

One of the reasons for the gain could be Hawaii's high percentage of second-home, resort and investment activity, Blomquist said. As many as 46 percent of all Hawaii foreclosures through April, the most recent measure, were at non-owner-occupied properties, he said.

"That's higher than the national average," he said, adding that 30 percent of foreclosures nationwide through April involved non-owner-occupied properties.

Investor activity was plentiful when Maui's median price shot above $700,000 during Hawaii's last housing boom, said Keone Ball, principal broker at Carol Ball & Associates in Kahului, which RealtyTrac ranked No. 8 among Hawaii ZIP codes for the most foreclosure activity in September.

Kihei, Lahaina and Wailuku were also in RealtyTrac's top 10 list of high-foreclosure ZIP codes.

"Since Maui's median price led at the peak, it only makes sense that it would be highest among foreclosure rates as loans come due and people continue to lose jobs," Ball said, adding that investor activity has fallen by more than 30 percent since the boom.

Still, RealtyTrac data show that growing foreclosures are not just contained to Maui or Kauai. Blomquist and other real estate watchers say Hawaii foreclosures will continue to increase as home equity falls, unemployment rises, loans are reset, and lenders fail to promptly approve short sales and modifications.

"There are so many things pointing to continued high levels of foreclosures," Blomquist said.

The rise in foreclosures is lowering Hawaii's real estate values, prompting more problems, said John Riggins, owner of John Riggins Real Estate in Kapolei, a region that ranked No. 5 on RealtyTrac's September list of high foreclosure ZIP codes.

"As neighborhood prices drop, some sellers will be forced into short sales or foreclosures," Riggins said. "The problem is self-perpetuating."

foreclosure, foreclosures, maui, homes, condos, kihei, lahaina, wailuku, kahaului

What are Reciprocal Beneficiary Relationshipsin Hawaii?

Well I was asking the same thing. So . . . I turned to the state of Hawaii for answers. Please read what I found out and contact me should you need help with Real Estate on Maui.

Howard Dinits RS CRS
RE/MAX Resort Realty
http://www.EasyMauiRealEstate.com
808-874-0600

A reciprocal beneficiary relationship is a legal relationship created when two consenting adults who are prohibited from marriage declare their intent to enter a reciprocal beneficiary relationship. Neither of the parties may be married or a party to another reciprocal beneficiary relationship. Those persons desiring to enter into a reciprocal beneficiary relationship must register their relationship as reciprocal beneficiaries with the Department of Health. All requirements of the Hawaii Revised Statutes, Chapter 572C must be met.

The Department of Health is responsible only for registering the declaration of reciprocal beneficiary relationship. The Department of Health neither makes any determination of the validity of the reciprocal beneficiary relationship nor is an information source on the rights and benefits extended to reciprocal beneficiaries.

Either party to a reciprocal beneficiary relationship may terminate the relationship by filing a signed, notarized declaration of termination of reciprocal beneficiary relationship with the Department of Health.

The Department of Health is responsible only for recording the declaration of termination of reciprocal beneficiary relationship. The Department of Health neither makes any determination of the validity of the termination of reciprocal beneficiary relationship nor is an information source on the consequences of the termination to the former reciprocal beneficiaries.

• How to file a declaration of termination of reciprocal beneficiary relationship.

Getting Information on Registering a Reciprocal Beneficiary Relationship or Filing a Declaration of Termination of Reciprocal Beneficiary Relationship by Telephone

Information on registering a reciprocal beneficiary relationship or filing a declaration of termination of reciprocal beneficiary relationship with the Department of Health may be obtained via the telephone system, any day or any time, by calling (808) 586-4533.

Contacting this Office by E-mail

To send an e-mail message, click on vr-info@doh.hawaii.gov now.

Who is Eligible to Enter Into a Reciprocal Beneficiary Relationship?

In order to enter into a valid reciprocal beneficiary relationship, it shall be necessary that:

• Each of the parties be at least eighteen years old;
• Neither of the parties be married nor a party to another reciprocal beneficiary relationship;
• The parties be legally prohibited from marrying one another under HRS chapter 572;
• Consent of either party to the reciprocal beneficiary relationship has not been obtained by force, duress, or fraud; and
• Each of the parties sign a declaration of reciprocal beneficiary relationship as provided in HRS section 572C-5.

How to Register a Reciprocal Beneficiary Relationship

• Prepare and file a Registration of Reciprocal Beneficiary Relationship form with the Department of Health (Registration forms may be downloaded from this site -see below).
• The Registration form must be signed by both parties and notarized - contact your local bank about notary public services.
• A fee of $8.00 (money order or cashier’s check only - made payable to the State Director of Finance - and no cash or personal checks will be accepted) must be paid at the time of the filing of the Registration form.
• At least one stamped, self-addressed, legal-sized envelope must be provided along with the Registration form - two stamped, self-addressed, legal-sized envelopes must be provided if the two Certificates (see below) are to be sent to two different addresses.
• The notarized Registration form, payment, and envelope must be sent by postal mail to:
  
  RBR Office
  P.O. Box 591
  Honolulu, HI 96809-0591
  
• After being registered, two Certificates of Registration of Reciprocal Beneficiary Relationship (one for each party) will be sent by postal mail using the provided stamped, self-addressed, legal-sized envelope(s).
• Registration will not be accepted and Certificates of Registration will not be issued on a walk-in basis.
• Copies of the Certificate of Registration are available upon written request, sent to the same address listed above, at a fee of $8.00 per copy (payment must be made in the same manner as for the initial registration), and a stamped, self-addressed, legal-sized envelope must be provided along with the request and payment.

How to File a Declaration of Termination of Reciprocal Beneficiary Relationship

• Prepare and file a Declaration of Termination of Reciprocal Beneficiary Relationship form with the Department of Health (Declaration of Termination forms may be downloaded from this site -see below).
• The Declaration of Termination form must be signed by either of the parties and notarized - contact your local bank about notary public services.
• A fee of $8.00 (money order or cashier’s check only - made payable to the State Director of Finance - and no cash or personal checks will be accepted) must be paid at the time of the filing of the Declaration of Termination form.
• At least one stamped, self-addressed, legal-sized envelope must be provided along with the Declaration of Termination form - two stamped, self-addressed, legal-sized envelopes must be provided if the two Certificates (see below) are to be sent to two different addresses.
• The notarized Declaration of Termination form, payment, and envelope(s) must be sent by postal mail to:
  
  RBR Office
  P.O. Box 591
  Honolulu, HI 96809-0591
  
• After filing, two Certificates of Termination of Reciprocal Beneficiary Relationship (one for each party) will be sent by postal mail using the provided stamped, self-addressed, legal-sized envelope(s).
• Declarations of Termination will not be accepted and Certificates of Termination will not be issued on a walk-in basis.
• Copies of the Certificate of Termination of Reciprocal Beneficiary Relationship are available upon written request, sent to the same address listed above, at a fee of $8.00 per copy (payment must be made in the same manner as for the initial registration), and a stamped, self-addressed, legal-sized envelope must be provided along with the request and payment.

How to Obtain Registration or Declaration of Termination Forms

Registration and Declaration of Termination forms may be picked up at the following locations:

Honolulu		Department of Health Building Lobby Area (1st floor) 1250 Punchbowl St. (corner of Beretania and Punchbowl Streets) (808) 586-4533
Hilo		Governor's Liason Office 75 Aupuni Street (808) 974-6262
Kailua-Kona		Governor's Liason Office 75-5722 Kuakini Highway, Suite 215 (808) 327-4953
Wailuku		Governor's Liason Office 2264 Aupuni Street, #1 (808) 243-5796
Lihue		Governor's Liason Office 3060 Eiwa Street, #106 (808) 274-3100

Registration and Declaration of Termination forms for downloading are in Adobe Acrobat portable document format (PDF).

If you do not have the Adobe Acrobat Reader installed on your computer, you need to install it before you can view and print the downloadable PDF files. The Acrobat Reader is free and can be downloaded to your computer by clicking on the button:

• Download Registration of Reciprocal Beneficiary Relationship form
• Download Declaration of Termination of Reciprocal Beneficiary Relationship form

In case you are looking for an Oceanfront Condo, I suggest Menehune Shores in Kihei as it is located near shops, dining, and the beach.

http://www.EasyMauiRealEstate.com

Check out this video and call me

808-874-0600
Howard Dinits RS
RE/MAX Resort Realty

Menehune, Shores, Kihei, oceanfront, beachfront, condominium, REO, Bank Owned, Foreclosure, Short, Sale, condo, RE/MAX

Buyer Incentives for Maui Real Estate

Price is key, but extras and perks also might catch a buyer's attention

Fancy buyer incentives like a new hybrid car parked in the driveway or a flat-panel TV might grab headlines but when it comes to actually enticing someone to buy a home in Kihei, Kahului, Wailea, Wailuku or Lahaina it's the more practical perks that count. Serious buyers are looking for a place to buy a home, not a trip to Vegas or the mainland, says Howard Dinits a top selling Real Estate Agent for RE/MAX Resort Realty in Wailea, Maui. Instead, effective incentives get to the heart of what's on the minds of potential buyers -- the overall cost of the home and the monthly payments they'll have to manage. The bottomline is what matters. Help in bringing down the interest rate of the mortgage for the life of the loan by paying points, for example, can go a long way in giving one home an advantage over another. Contributions to the down payment and common closing costs could especially be of help to a first-time home buyer, or someone that barely has enough down. Incentives can be considered when the home is first listed as a way to distinguish it from the the rest. They can also be added when the home hasn't sold in two or three months as a way of enticing a buyer without lowering the cost. Or incentives could arise in negotiations, when a buyer needs that one extra little nudge to commit. Make no mistake, the location and condition of a home are going to be its main selling points. But if sellers "put on their buyer' thinking cap" and really consider what issues the buyer might have, it could make the difference between selling this month or next year. I tell all of my sellers to look at his walk away money. You know the actual cash they get after settlement. As that is what matters.  A seller should figure how low he or she is willing to go, factoring in both the selling price and other incentives used to get a buyer to commit. But also be aware that most seller concessions need to be disclosed. When it comes to Maui Real Estate everything should be in writing. In addition, buyers and sellers need to make sure that they don't exceed the lender's allowable seller-paid assistance. Some allow 1%, 3%, or even 5% of the sales price, so it's important to have your lender call Howard Dinits and explain what program you are qualifying under and the maximum allowable credit I can get you before we write the contract so I can be certain to have it in C-67 special terms in the Hawaii State real estate contract. Below are six of the most common incentives being used in the Maui Real Estate market today

1. Reducing the price

A price reduction might be the most common buyer incentive, and often it is the one that is looked at first. Be it central Kahului, Wailuku, or West Maui Lahaina Area, or South Maui, Kihei, Wailea, areas, price is what matters today. The price is something that is a common currency -- it appeals to everybody. Be it a mainland investor, a local family, foreign investor from Japan or Canada. If a buyer has in her mind that she'll pay $300,000 for a home and the seller won't budge from $350,000, "$5,000 in closing costs and a plasma TV ain't going to get the house sold. But those extra little perks can grab the attention of a buyer; it also might inspire a commitment from someone on the fence between two similarly priced properties. What Howard Dinits usually recommends before you reduce the price ... think about what you can do with the same dollars in an incentive to entice a buyer.

2. Paying points

Sellers can offer to pay mortgage points for a buyer, an incentive I tend to use in today's market, when rising interest rates are at the front of a buyer's mind. One point is 1% of the loan amount, charged as prepaid interest. For example, instead of having an interest rate at, say, 6.5%, a seller might be able to pay points so that the rate is at 5.5% for the life of the loan. When a buyer sees a lower interest rate or monthly payment, that's something they can relate to. I often sell homes based on the payment. For instance can your family afford $1,100 a month? The setup makes sense for a buyer who has furnishings to buy for the new place; it also can make for an easier monthly-payment transition for families that are upsizing or are getting out of a rental situation.

3. Down-payment aid

For some first time buyers, the hardest part of entering the ranks of homeownership is the down payment. This is also an area where a seller can help. It's mostly first-time, VA, FHS, home buyers interested in this kind of assistance because they're often the ones lacking in sufficient funds to complete the deal. It gets people into homeownership and out of the rental money pit. The disadvantage is that the buyer is financing that additional amount, because a seller would likely come down in the price of the home if a portion weren't dedicated to down-payment assistance.

4. Help with closing costs

Closing costs include items ranging from taxes to title insurance and can add up, ranging between 2% and 7% of the loan value, according to Freddie Mac. So many buyers, especially those stretching to make a down payment, will be interested in having a seller help out. In Maui, buyers in every price range have been asking that these costs be covered. They ask for it because they know that they'll get it.

5. Adding a home warranty

A residential service contract is sometimes thrown in as an incentive because it acts as insurance for a home's systems, often including plumbing, heating and cooling. At a cost of a few hundred dollars, some real-estate agents consider it an inexpensive add-on that affords a buyer a little extra peace of mind. That peace of mind can be especially welcome during the first year in a house. Others take a different view, and say there's often confusion over what elements are covered. If a problem is considered a pre-existing condition, assistance could be limited. It makes the sale go smoother and often a buyer won't bug you to fix everything. 6. The little things

Other perks will appeal to buyers, too, ranging from the common to the unique. Payment of homeowner association fees, typically associated with condo developments are paid for 1 year. Also sellers with pools might also offer a year's worth of upkeep for it, a welcome help to those worried about the maintenance of the backyard attraction. Or maybe if a corner of the home was designed to fit a baby grand piano, leaving that instrument behind entices a buyer to go through with the deal.

Now you know some of the ways to entice a buyer. Have a home to list Call Howard Dinits RS RE/MAX Resort Realty at 808-874-0600 or 877-434-6487 to list your home.

Buying a home or condo? Call Howard Dinits and I'll score you a fabulous home with all of the right incentives. 808-874-0600