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if you bought a house in Puna in the last 5 years
Since John Rabi (got it right that time John)posted one of his articles I thought I'd post one of mine. I think it speaks to my opinion of other agents. I was so close to linking to it but I don't know if y'all could handle my picture. This article was written in the spring of 08.

I thought we might rename this column Farm and Ranchette. Let’s face it, most of the readers here own a ranchette, or are looking to buy or sell a ranchette. Most of the particulars such as water, topography, fences, out- buildings etc., apply to small ranches in the same manner as large ones. They may not apply on the same scale for the small ranch as they do the large ranch, but they’re still just as important to the perspectives of the buyer or seller.

We will look at some of these different features and amenities that make up a ranch or ranchette, but in this first column I want to discuss the need for a good experienced farm & ranch agent. I know that many of you will want to let your brother’s wife’s cousin’s son, who just got his real estate license, handle your transaction. And let’s not forget Mabel, the housewife, who lives down the street and does real estate on the side. Mabel, a fictitious character, does a couple of deals a year. Do you really want either one of these two handling one of the largest transactions of your life? I know some of you’re thinking ole Dave wants us to use him. Not the case entirely. I want you to choose an agent that can represent you and that I, or any other experienced agent, won’t have to carry through the transaction.

I hear people saying we just called the name on the sign. That’s great if it’s my sign, but if you think that the guy on the sign, even if it’s me, is going to give you a better deal then you’re terribly mistaken. The guy on the sign has a fiduciary and legal obligation to the seller. Hey sign caller, you have no representation in the deal. I only have to treat you fairly. Anything you say can and must be conveyed to the seller that I represent. And by treat you fairly some agents, none locally, may interpret that as not stealing your car.

In the next few articles you’re going to be able to tell what’s wrong with the pond that has a sodium-bentonite liner and the rancher that still has to bring in water for his cattle because his pond keeps going dry. If you read these articles and all goes well maybe you can impress your brother’s wife’s cousin’s son, who just got his license. Honestly, I see no problem with buying a car from this kid but do you really want him reviewing your title exceptions? Yeah, we’ll talk about title exceptions too. When looking for an agent, choose wisely.

I’m Dave and I approve this message.



Blessings,
dave

"It doesn't mean that much to me.. to mean that much to you." Neil Young

Blessings,
dave

"It doesn't mean that much to me.. to mean that much to you." Neil Young

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There is a risk in EVERY transaction (just think of what could transpire if you sold land that you own & it was staked wrong... by you or the person you bought from.... or think if you bought a parcel that was wrongly staked & you built believing that the past staking were true.... I think you can imagine that some rectification would be required... & that there would be some liability...)

(Oh, this is not something I pulled out of my hair... this was a case that some of our PW realtors were involved in a couple of years ago...)
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The simplistic folk wisdom goes like this:

Every opportunity to make money is also an opportunity to lose money.
Assume the best and ask questions.

Punaweb moderator
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Unless you own the printing press [Wink]


-----------------------------------------------------------
I do not believe that America is better than everybody else...
America "IS" everybody else.
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I do not believe that America is better than everybody else...
America "IS" everybody else.
The Wilder Side Of Hawaii
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A printing press is indeed a way to lose money too. There are no sure things.

Assume the best and ask questions.

Punaweb moderator
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LMAO at your newsletter Dave, I love the part about not stealing your car. [Big Grin]

Speaking of agents, I just saw that HGTV Househunters show on the Alaska couple looking to buy oceanfront in Puna, that I was alerted to here. (I guess it repeats fairly often).

The agent that showed homes to that couple, was everything I don't like. She was the perky glossy high sales pitch here's your dream home, everything is good, hey it's only $900 a square foot.

She pitched catchment water as "never having to pay a water bill again." OMG!
She never said a word about Lava Zone 1 and the implications.
Just sold them a fantasy lifestyle, for over $700K

Almost sold them the fixer so they could "personalize" the place, an 800 square foot fixer 2/1 for over $500K. Not a word about the challenges of fixing houses here.

Stuff that made me laugh ... they saw the house on the really high post and pier that is required for oceanfront in Kapoho (12 feet?) and laughed and called it the tree house. Not a word from the agent about how that's so the storm surge stays under your living area when the weather acts up.

This is the one where they drive through the "cute Bohemian Village" of Pahoa. It was like they bought the Disneyfied version of Puna, and the realtor totally played it that way.
I'm so glad I've never had an agent like that. I've been shown houses by sellers' agents that insisted on walking me through with my agent, who did that, but it always turns me off.

Blech. It left a bad taste in my mouth, the lack of information these buyers got. Maybe all that was cut out for TV, but I think it would have been more interesting for home buyers to hear the real scoop.
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quote:
Originally posted by StillHope

John Rabi, thank you for the explanation of your company FSBO policy.For how long MLS can be listed without "renewal fee" and how much is the co-op fee?
We take listings for one year and the FSBO Program is a "Limited Service Listing Agreement." The co-op fee is up to the seller, it's the amount the seller is offering to brokerage company representing the buyer. (I think her name is Mabel!) [Big Grin]

Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
This is what I think of the Kona Board of Realtors: http://www.nsm88.org/aboutus.html

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quote:
Originally posted by John S. Rabi on 7/26/06

Just for the record, I still say the overall prices will go up and you can call me on it in 2-3 years.

quote:
Originally posted by John S. Rabi on 7/26/06

The educated look at a tree instead of the forest. The media "bubble scare" started two years ago on the Big Island. However, prices still solidly increased and the number of sales did not drop during the first year. Needless to say, the media got scared and started talking about an even bigger bubble. The number of sales started dropping in October of last year but the median house prices were still up compared to a year ago as recently as in May of this year!
The NAR represents the real estate industry and agents everywhere in the USA and they don't publish regional data.
They expect 50,000 people to move to Puna during the next 10 years. That's a fully developed HPP almost six times! One just need to look at the commercial activity on the East side. I already saw the same thing happening 10 years ago here in Kona.
There always will be negative people who miss the train and will tell the others who also missed the train that the train will crash. However, the train safely make it to the next stop before going further on.


Since then the bubble has proven to more than just a "scare" and the train didn't make it safely to the next stop. If you still can't see that RE agents had a hand in the bubble, then nothing will.

I'm not blaming Mr. Rabi himself though. If I was a RE agent, I would have been thinking the same thing, that prices would keep climbing. That's the nature of bias. I think it was Julius Caesar who said "men will believe in what they want to be true". I know he truly believed in what he said back in 2006.
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Thanks for clarifying, Dave. Your knowledge is an asset to PW. Hope you make it here soon.
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quote:
Originally posted by bystander
[br
If you still can't see that RE agents had a hand in the bubble, then nothing will.
bubble was ENRON, EXODUS, CMGI, WORLDCOM, just to name a few. A piece of paper that's worth nothing today. The last time I checked the property prices are still 2-3 times as much as they were eight years ago and the title covers real estate and not books cooked by crooked corporate executives.
Yes, I admit it, I sold almost all of my real estate holdings in 2005 and 2006, because the values reached my exit level, but I invested my funds in real estate elsewhere.

Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
This is what I think of the Kona Board of Realtors: http://www.nsm88.org/aboutus.html

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