Hawaii has been hit by a shortage of Christmas trees, driving prices for a 2 foot tree up to $55!  As KITV reports – Short trees for tall prices. Perhaps it’s time to follow Charlie Brown’s example.

With all the beautiful trees and flowers we have on Kauai, perhaps we need to change our traditions and save some money. 

Lights on Palm trees??  I’m sure Santa won’t mind.

Tell us your Hawaii Christmas story….

Scott with his 'old school' long board

Surfing waves the size of buildings takes a kind of courage and character few have.  My husband Scott used to surf big waves… in fact love of the ocean is what brought us together.  

In San Francisco, he surfed under the Golden Gate bridge hunting for big waves, or we’d all drive down to Mavericks on the weekend, where you’d find me by the bonfire with coffee and hot chocolate ready.

I never really understood…freezing cold water, getting beat up and bloody.  He’d come out of the ocean various shades of blue,  like he was crossing the tundra in Dr. Zhivago, but with a huge smile.  When we moved to Kauai where he first learned to surf in the 70’s – I got it!

From his passion for surfing I learned a lot about life. In fact, pretty much everything I need to know is in the ocean.  Living on Kauai has brought me even closer to those rhythms.  If the set curls left, then go left..

As giant 40 ft waves hit the shores of Hawaii and during last week’s 2009 Pipeline Masters on Oahu, there’s been a mix of press about foreclosures that reminds me of lessons I learned from Scott, watching the big wave sets.

The biggest lesson I learned was to “never turn your back on a wave.” If you’re not a surfer, check-out this clip from a movie about  Mavericks. You’ll see how dangerous the calm between sets can be when you get caught inside.  The bigger the wave, the deadlier the risk.

As Matt Beall, BIC and CEO of HawaiiLife.com discussed in his recent blog post, you don’t want to get caught ‘inside’ the incoming foreclosure sets. For sellers, it’s like turning your back at Mavericks or Masters. 

In recent press like the article below, it seems some are doing just that:

• Positive Economic News as Foreclosure Rates Fall

Allowing the calm between waves to lull you into believing the set is over is just as dangerous for sellers as it is for surfers.  On the horizon huge sets are still coming in.  We are years from getting through this foreclosure big wave surf.

These articles seem to be from industry ’surfers’ who are actually watching the incoming sets:

• Foreclosures on Neighbor Isles Continue to Fuel Statewide Rate
• Historic U.S. Unemployment
• Hawaii foreclosures up 122 percent – Pacific Business News
• Foreclosure backlog estimated at 1.7M

So what kind of board do you need in this market? 

• For sellers in distress, a short sale ‘board’ with a trained realtor. 
• Sellers who want to sell, but aren’t in distress need to understand the foreclosure market is the market right now.  Pricing has to be competitive with REO’s and foreclosures. Short sale expertise and training will help you navigate these waters.
• Buyers also need a short sale expert. Riding foreclosure waves as a buyer isn’t easy.  There are lots of surges and surprises – and you’ll want a realtor with experience and training.
• Whether purchasing a short sale, REO or “regular” listing, knowledge of the foreclosure market from your realtor is like your ankle leash.  

Go ahead! Jump in the water, surf Kauai real estate.  Please know I’m here to help. My training as a Certified Distressed Property Expert, and experience with successfully closing short sales can be your tow-in.  Contact me and we can make sure you enjoy the water.

PS – yesterday I won a $100 gift certificate from a local surf shop.  Maybe it’s time for me to get a long board and try the old man (or in my case – old lady) 2 ft waves….

Up at 4am for Black Friday shopping? Why not put your feet up and ’surf’ Kauai real estate.

Here’s my favorite Top 3 Kauai Real Estate Black Friday Deals:

1. MLS 226132. Reduced INDYMAC REO Lihue home. Dropped out of escrow. Lender reduced price – Listed at $279,900
2. MLS 227869. Princeville Ag plantation style home on over an acre.  Built in 2005.  2 bd / 2.5 ba with 2 car garage. Trust sale – no court confirmation needed. – Listed at $895,000
3. MLS 228946. Not a short sale or foreclosure. Located in Wailula Rise Estates, in the Wailua Homesteads area near the Kauai Hindu Monastary. Concrete block home on 1/2 acre, with open great room and 3 bd / 2 ba. Lot qualifies for an Additional Dwelling Unit (ADU). Room for a pool and 2nd home. Tenant occupied. Much better than shows in current pictures. Listed at $549,000

But wait – there’s more!

• MLS 225936.  REO Banyan Harbor 2 bd / 2 ba condo in Lihue.  Price lowered today to $179,000.

For more information on these listings, what it takes to write an offer or Kauai real estate questions, contact me.

Grab a board to surf more real estate, and Kauai foreclosure updates:

• Kauai REO Market Update 11.26.09
• Kauai Short Sale Market Update 11.26.09
• Kauai REO and Short Sale Listings

Foreclosure, short sale, or a motivated seller? As you look at foreclosure and short sale listings, don’t forget regular properties priced to sell.

Click on the links below for a video walk-through from a recent Princeville broker’s caravan. You decide  – which is the best value?

• 4679 Emmalani Drive REO - $650,000

Click on photo for listing details

• 4240 Wailea Place; new Short Sale Listing – $685,00o

Click on photo for listing details

• 3781 Milimakani Place; motivated seller – $659,000

Click on photo for listing details

Now you’ve seen all three – comment below on where you see the value?

Ok, so I never really watched that movie…but the title of it makes me smile.

Four years ago, I made a huge donation to Cancer (yes, with the capital C) – and not the tax deductible kind.  My journey with the big C started in October , which happens to be breast cancer awareness month (at least I was on schedule), and ended in December with major surgery removing my left breast and 5 lymph nodes.  Luckily, the big C hadn’t spread and I was able to dodge the chemo / radiation bullet.

A friend who works for the Cancer Society helped me get a small replacement boob, the kind that’s mooshy rubber and sticks inside your bra.  That’s where my wardrobe malfunctions started. 

Two weeks after surgery I was back at work…pounding a sign in the ground at a new listing, when my new rubber boob flies out into the yard.  After quickly looking around to see if anyone saw it, I tossed it in my toolbox in the back of my SUV and kept going. 

Several other flying boob incidents (falling on a plate when I leaned over) led me to toss the rubber one in the garbage, and just fake it with a nice padded bra (ode to Madonna).

I still go through wardrobe malfunctions, but at least nothing’s flying – and it’s not as hot! 

Many humorous situations came with my solution.  Tried using the empty bra space as an extra pocket when dancing, but my license and lipstick still fell out.  My grandsons used Grandma’s “secret pocket” as a favorite place to put their tonka trucks and hotwheels.  (I’ll be able to embarrass them with that story when they’re teenagers…)

Over the past 4 years, I’ve debated about replacement surgery, but finally decided that I’m not going to do it (plus, I don’t have the insurance).  I’m all done with slicing and dicing, thank you very much!  And it would still be a fake boob – what’s gone, is gone.  I’m grateful surgery worked – so far I’ve been cancer free.  I’ll live with wardrobe malfunctions over cancer any day

So, why am I telling you this story?  Well, recently I decided to go ahead with a vision I’ve been playing with for 4 years.  To get a tattoo of a flower where my boob used to be – reclaiming beauty and sensuality in a different way. 

Karen Roze is a very talented tatoo artist from the San Francisco Area. We exchanged emails about my vision for over a year.  When she was on Maui recently we met at her friend’s shop in Lahaina -Spike’s Westside Ink . 

She took my idea farther - instead of replacing a breast with a flower, she used the entire side of my body as a canvas for a beautiful spray of purple orchids based on this photo.  The experience touched me on many levels (besides the obvious)…. letting go hidden fears as well as affirming beauty and a sense of wholeness.

Why am I sharing this?  From a Kauai real estate perspective -  when we meet to look at properties, you may see green and purple sprouts instead of cleavage. (Ok, with one boob, cleavage is pretty much impossible anyway – like one hand clapping…)  But you get my point.

The little green leaf that shows with most of my blouses, has prompted me to “out” myself as a cancer survivor and share my journey with you.    If you know anyone facing the big C, I hope you’ll help them remember to laugh hard and love generously!

• Thermography – an alternative to Mammograms
• BreastCancer.org
• Susan G. Komen Foundation
• Breast Cancer Info – National Cancer Institute

Join me for a walk-through of an unusual opportunity. This home is 90% done, just waiting for finishing touches. Located near the Hanamaulu Beach, it’s tucked away, very private and has gorgeous mountain views. Although you’re literally in Lihue the home feels like a mauka retreat. Not a foreclosure or a short sale.  Owner motivated and welcomes all offers.

• MLS 220433, 4235B Hehi Road,  listed for $399,000
• Agriculturally zoned CPR lot of over 13,000 sq ft surrounded by bamboo, tropicals and views. The house has 1,200 sq ft of living space on both floors with an oversized lanai and the possibility to extend that lanai even further.
• 3 large bedrooms with 2 baths on the 1st floor, an open great room with a full bath on the 2nd floor.
• Both floors have oversized lanais with mountain views.
• Permits are active as owner builder, and can be signed over to a new owner.

• Construction loans are possible.  Contact me for a referral.
• Get your free Market Report using the zip code 96766.  You’ll receive a detailed analysis of active and sold listings in minutes. 

I can’t begin to answer that question. But after one year, I find it curious we don’t see more in the press about the results.

Newsweek.com ran an article with a series of quotes from 2004 to 2009 that is quite interesting – The Financial Meltdown’s Best Quotes.   Of note;

• “If the government is going to get into the bailout business, shouldn’t we also be focusing our resources on the average Americans, the taxpayers, rather than the sophisticated and well compensated Wall Street Bankers…”  Senator Richard Shelby, R-Ala, during a Senate Banking Committee, Sept. 23, 2008
• “If money isn’t loosened up, this sucker could go down.”  President George W. Bush, on the foundering bailout package, Sept. 25, 2008

One year later we find the foreclosure crisis worse nationally than predicted.  Remember the buzz in the media about foreclosures as a personal problem?  Homeowners who got greedy, bought houses they couldn’t afford, etc.  Many people felt like the bailout was going to help irresponsible people, and why should taxpayers bear that brunt. 

• Homeowner Bailout Plan Stirs Ire
• Government Shouldn’t Bail Out Failing Homeowners

That’s a good question.  But a year later, it’s clear that the bailout money has not been directed at stopping foreclosures, and helping the individual taxpayers.  In fact with rising unemployment, foreclosures have spread further into the fixed rate loan market, hitting every segment of the population.

As a short sale specialist, I work with families in the midst of the foreclosure process.  It’s become clear to me there are two realities….

1. Bailout money went to both Wall Street firms and the banks.  Rather than use the funds to do loan modifications, the banks are once again selling mortgages to Wall Street…the same cycle that created our problems.
2. In the meantime, the economy at the “street” level, continues to burn in the wildfires of foreclosure.  The only real solution I see working is short sales, one family at a time. 

A year ago, I wrote an article suggesting that the economy will be best corrected by creating solutions at “main street”, not Wall Street.

Credit Crisis – One Woman’s Solution.  Perhaps I remain like the child in the “Emperor’s New Clothes”, I’m afraid I don’t see the suit – to me he’s just naked.   Working with families in crisis, one year later, I don’t see the bailout solution working on “main street”.

Short sales remain the best working solution to stop foreclosure.  As sad as it may be to give up the dreams of owning a home, it’s so much better to preserve credit and avoid the nightmare foreclosure will bring.

Additional articles of interest:

• Foreclosure Plan Ill Suite for Changing Crisis, WSJ.com
• The U.S. has miles to go with it’s mortgage modification plan.

If you know anyone who is affected by the foreclosure crisis and would like help, please feel free to contact me at www.Call4Susie.com.

And the drumroll please …. featured here are the top 5 biggest price reductions in the Kauai real estate market this week. 

The top 4 are NOT foreclosures or short sales.  The last one is subject to court confirmation:

1. Reduced $244,000.  MLS 218919. Listed now at $695,000. Agriculturally zoned CPR. 4 bd / 3 ba home on an acre. Lindahl cedar home, located 6 minutes to Poipu. Total of 2,433 sq ft of living space including in-law quarters.  Built in 2004.  All Photos
   
2. Reduced $105,000.  MLS 219120.  Listed now at $995,000.   Poipu Ocean front condo, with Owner Financing Available!  2 bd / 2 ba with 1,083 sq ft living area. Poipu Makai #E2.  All Photos.
   
3. Reduced $100,500. MLS 198645.  Listed now at $1,998,500.  7 acre lot in Kealia Makai oceanfront subdivision on the east side.  Originally price was $500,000 more, on the market for 806 days – seller says bring an offer!  All Photos. 
   
4. Reduced $100,000.  MLS 211754.  Now listed at $699,000.  3 bd / 3 ba home with 1,766 sq ft living space on almost 1/2 acre.  Sweeping views of Mt. Waialeale.  All Photos.
   
5. Reduced $100,000. MLS 220509.  Currently listed at $1,279,000.   Aliomanu Estates two-story home on 4.36 acres.  3 bd / 2.5 ba home with 1,732 sq ft living space. Subject to Court confirmation.  All Photos.
   

Just because there’s a big price drop, doesn’t mean that’s automatically a great value.  In my opinion, some of these do offer good opportunities.  But as a case in point, check out my new listing (MLS 228054) this week and compare it to #5:

• Almost identical price – $1,297,000
• Near Aliomanu Estates
• Whitewater Ocean Views through the home
• Gorgeous Mountain Views
• 2+ acre lot
• Almost double the living area
• Built in 2007
• All Photos
• Virtual Tour

What’s my point?  Well, although watching price drops is a good way to find opportunities. It’s critical to work with a dedicated buyers agent who can provide you market analysis to see where the “values” are.  Does the price drop mean the seller is chasing the market down? Or is it really a deal now? 

• MarketReportbySusie.com - Subscribe for your own Kauai Market Analysis Report, delivered regularly to your email.
• KauaiEastsideLuxury.com – Gallery of Kauai luxury listings on the East Side
• KauaiLuxuryForeclosures.com – Gallery of Kauai luxury short sales and foreclosures listings.

Okay, you think I must be crazy – a Realtor telling you not to buy???  Don’t get me wrong, I love working with buyers!  It’s an honor and privilege to help people pursue and fulfill their Kauai real estate dreams.

Working with buyers, we twist and turn the market data, their short-term and long-term goals, just like a Rubix cube.  Sometimes, it’s not an automatic fit, but if we keep twisting and turning – we find that right property that fits their family’s goals.

However, there are some goals that don’t fit with the Kauai market – here’s my top 3 reasons not to buy real estate on Kauai:

1. Cash Flow.  Kauai offers a fascinating variety of properties, and lifestyle choices.  However, if your goal is to utilize the “down” market to create passive income with rental properties – this isn’t the place.  Although a few lower priced condo offerings are coming closer to being able to “cash flow”, your expectation should be only to cover some of your costs. 
2. Short Term Gains.  Many sellers are holding onto the idea of when the “market will return”.   None of us can predict what will happen with the market.  We do know that we are bouncing along the bottom.  The buyers I’ve been working with during the past two years have all identified opportunities that presented a good value in their eyes, realized the market value may continue to fluctuate, but feel the property will gain in value over time based on traditional real estate statistics –  not recent “bubble” gains.
3. Short-term Flipping.  There are hard money investors who are successfully buying distressed homes and doing option contracts, selling them at the same time for a short term profit (simultaneous A to B, and B to C  contracts).  I’m not saying that it is impossible on Kauai to do this, but buyer demand has been primarily for the bottom values.   I would love to be proven wrong on this

For more information, check out the following links:

• How to Use a Buyers Agent
• Search ALL Kauai Real Estate

What are your reasons to buy, or not to buy, real estate on Kauai?  Add your thoughts here, or connect at:

• Facebook.com/SusannaKunkel
• Twitter.com/Susie4Kauai
• YouTube.com/Susie4Kauai

Watching CNN cover the “Beer Summit” in Washington today made me chuckle.  You could see the announcer’s confusion and discomfort…like they wanted to say “huh?”   

Beer Summit at White House

What made me chuckle is that President Obama is applying “island style” diplomacy at his new home – The White House.

I can’t tell you how many “meetings” I’ve had with clients at the picnic table,  in the garage, or on the lanai.  Most people have a stack of plastic chairs in their garage.  Entertaining is done with beers, good food and a little music- outside, either at home or at the beach park.

Mr. "Wala'au"

Politics, local style, involves relaxing and connecting…often outside over a beer.  I used to live down the street from local celebrity Dickie Chang who is now on the Kauai County Council, and many “meetings” and fundraisers were outside his home with beer, food, music and laughter.

Dicki is known as Mr. Wala’au..another word for “talk story.”  His local TV show is a favorite of residents and visitors alike. 

Wala’au in Hawaiian means to communicate, someone who likes to talk.  For a musical explanation of Wala’au, here’s a video of two instruments “talking story” Hawaiian style.

I’m glad to see President Obama approach this difficult situation with his “island roots”…bringing people together.

Join me here for some local style music…bring your own drinks and pupu’s (appetizers). Listen to Bruddah Iz and then let me know if all this tension and hate really makes any sense…let’s “wala’au”…add your comments below or let’s talk story at:

• Facebook.com/SusannaKunkel
• Twitter.com/Susie4Kauai
• YouTube.com/Susie4Kauai