Marketing the YouTube way

Island businesses say the online sensation is cost-effective and works

By Gene Park

POSTED: 01:30 a.m. HST, Feb 21, 2010

About two years ago a local woman did a YouTube search for "Hawaiian," as she was curious about what would pop up.

She ended up watching a video tour from Big Island Realtor Howard Dinits on a property he was selling at Hawaiian Shores in Pahoa. She grabbed her husband and went to see the house.

"Without ever calling me," Dinits said, recalling the sale. "It was the only house they looked at, and they eventually got it. That's what opened my eyes."

It's not like Dinits isn't Internet-savvy. Earlier in his life he sold glass art through his Web site. He was just surprised at how a random search for something unrelated led to business for him.

Local businesses large and small are betting on YouTube's purveyance, as well as the permanence of its presence, to strengthen their marketing arm.

It's a cheap bet, since the outlet is free. Its cost-effectiveness is one reason why the Hawaii Medical Service Association canceled its "HMSA Now" channel on digital cable last year.

"But not everybody has digital cable; it's not available in all areas," said HMSA spokeswoman Laura Lott. "Then we thought, Where do we go? When we want to look something up or have a health question, we go to the Web."

The channel offers health advice and information on insurance policies, as well as archived commercial spots. Lott said turnaround for producing videos has become easier since the company is able to upload on its own time.

"It's a simpler, shorter work flow and more cost-effective," she said.

For Dinits it was a small investment that has gone a long way. He's bought a camera that can shoot in high definition, with solar-charged batteries. "What's that investment there? Like $200?"

Dinits' video channel features footage of him giving virtual tours of properties he sells. Sometimes the channel more closely resembles a vlog, or video blog, with many personal asides, or footage of musicians he enjoys. Most times he visits the neighborhood of the property he is selling, visiting nearby shopping centers and attractions.

"They get to know me, they get to know the real estate, they get to know the area," Dinits said. "It's a way of people to get to know who they're doing business with."

Dinits said he no longer advertises in traditional media, outside of one local real estate guide.

"With the old way of giving information, you made the consumer call you, and that's how you got your lead," Dinits said. "I say give them everything. Give them all the information, show them the map, show them the Google locations. They'll call you because you're the one who gave them all that information."

Luxury real estate company Kahala Associates launched its YouTube channel earlier this month. The channel is regularly updated within a day or two of a new listing. The videos are also tagged with keywords so they would show up on search engines.

"It's pushed distribution of our listings in a huge, powerful way," said Chuck Garrett, Kahala Associates' business development director.

The firm hired a video vendor in Wisconsin to put together presentations for online. That way Kahala's 25 associates didn't need to waste time training to develop voice acting or film skills.

"We haven't had to become experts in how to make YouTube videos, because we're busy selling houses," he said. "We don't have to write the script, we don't have to buy a video camera."

The only initial hiccup of the outsourcing was mispronunciations of certain properties. But that problem was solved by using Forvo.com, an audio pronunciation guide to which people can contribute clips.

"'Kaaawa' was a tough one for them," Garrett said.

The firm still does print ads, trying to be "much leaner and smarter" in its advertising costs.

Farmers Insurance Hawaii, formerly AIG, still saturates traditional media with advertising with its popular commercials. The ads' popularity was part of the reason why the insurer started its own YouTube channel in 2007.

"Especially the one with the mailbox, and the argument, and the grandparents, some of the older ones," said Farmers e-marketing manager John Tapper. "People still talk about them, and asked to be able to see them."

Although the insurer started a new channel under its changed name, it decided to keep its AIG YouTube account active as an archive for its older commercial spots. Both channels have grown to highlight its community service work, including food drives, and the firm's TV spots for traffic safety.

"We're able to improve engagement and build trust," Tapper said. "It's an easy medium for people to look at that's nonthreatening, and be able to say we're part of the community."

Farmers spokeswoman Wenli Lin said the channel only informs the company's larger social media platform, being able to refer to videos on its Twitter and Facebook accounts.

"And it's the way things are going to be," she said.

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Home, condo sales up on Kauai and Big Island

By Allison Schaefers

POSTED: 01:30 a.m. HST, Feb 06, 2010

Sales of single-family homes and condominiums on Kauai and the Big Island posted triple and double-digit increases last month as buyers pursued bargains.

Prices were mostly lower.

While Oahu's housing market experienced a double-digit rise in single-family home sales and the median price last month, the neighbor islands still have farther to go, said Howard Dinits, a Realtor with RE/MAX Resort Realty in Waimea whose specialty is Maui and the Big Island.

"Oahu has already stabilized, but the outer islands still have no jobs and that hurts," he said. "Furlough Fridays have hurt, too."

In January, 31 single-family homes changed hands on Kauai, which represented a 210 percent increase from the prior year's sales. Likewise, condominium sales doubled to 14, a 100 percent rise last month.

Despite the run-up in Kauai sales, home prices continued to drop last month. More than half of the Kauai buyers in January paid at least $375,000 for a house, which represented a nearly 20 percent decline. Likewise, the median price paid for a Kauai condominium fell 19.5 percent to $204,500.

More Canadians than ever are looking for Kauai properties, said Phil Fudge, principal broker at Kapaa-based Kauai Landmark Realty.

"We had about five Canadian buyers come through in the last month," Fudge said. "Their economy isn't as sluggish as ours, and their dollar is in a good position."

It was a similar story on the Big Island, which saw single-family home sales increase nearly 69 percent to 86 and condominium sales rise nearly 63 percent to 26.

The median price paid for a single-family home on the Big Island fell about 9 percent to $239,250; however, the median condominium price increased about 21 percent to $245,000.

Bargain hunters from Oahu, Alaska, the U.S. West Coast and Canada are eyeing the neighbor islands, Dinits said.

"They like the low prices and the chance to get away from the cold," he said.

Local buyers also are capitalizing on low prices, favorable interest rates and the tax credits that are available to qualifying first-time buyers and owner-occupants, he said.

"Our volume is up. I've closed nine sales on the Big Island and Maui this year," Dinits said. "But I wouldn't say that prices are appreciating yet."

Big Island buyers are getting more serious, said Paula Beamer, a Realtor with Clark Realty's Waimea office.

"Some of them feel we are at the bottom," she said. "Getting a loan is a little tricky, but if you can get one, some of the prices are back to 2004 levels."

There are plenty of lookers in Kauai's market but fewer investor-buyers, Fudge said. "Our tourism has been down, and they want to see potential renters," he said.

http://www.BigIslandRealEstate.com

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Home sales on Big Island and Kauai rose in October

Falling prices and homebuyer credits draw bargain hunters locally and abroad

By Allison Schaefers

POSTED: 01:30 a.m. HST, Nov 06, 2009

Home sales picked up on the Big Island and Kauai in October, according to a recent report from Hawaii Information Service.

Single-family home sales rose 48 percent on the Big Island and 39 percent on Kauai, said the report, which was released yesterday. Likewise, condominium sales rose about 21 percent on the Big Island and nearly 78 percent on Kauai; however, the percentages are somewhat skewed by the small size of these markets.

"I had three closings in one day in October," said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales. "I haven't seen activity like that for three years."

Dinits said sales are up because prices have fallen.

"I recently sold a 1,270-square-foot home for $130,000 in Hawaiian Shores Recreation Estates on the Big Island," he said. "The same house would have sold for $265,000 in 2005."

Dinits said bargain hunters are coming from Oahu and Maui, California, Oregon, Alaska and Canada.

The $8,000 first-time homebuyer credit, combined with the price drop, also has lured buyers who could not afford to participate during the last cycle, he said.

"There are houses selling for $70,000," Dinits said.

The median price paid for a single-family home fell 13 percent on Kauai to $446,500 and nearly 6 percent to $282,500 on the Big Island. But while the median condominium price rose 26 percent to $357,000 on the Big Island, Kauai's median condominium price fell 24 percent to $395,000.

Home sales picked up on the Big Island and Kauai in October, according to a recent report from Hawaii Information Service.

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Single-family home sales rose 48 percent on the Big Island and 39 percent on Kauai, said the report, which was released yesterday. Likewise, condominium sales rose about 21 percent on the Big Island and nearly 78 percent on Kauai; however, the percentages are somewhat skewed by the small size of these markets.

"I had three closings in one day in October," said Howard Dinits, a Realtor with RE/MAX Resort Realty in Wailea, who specializes in Big Island and Maui sales. "I haven't seen activity like that for three years."

Dinits said sales are up because prices have fallen.

"I recently sold a 1,270-square-foot home for $130,000 in Hawaiian Shores Recreation Estates on the Big Island," he said. "The same house would have sold for $265,000 in 2005."

Dinits said bargain hunters are coming from Oahu and Maui, California, Oregon, Alaska and Canada.

The $8,000 first-time homebuyer credit, combined with the price drop, also has lured buyers who could not afford to participate during the last cycle, he said.

"There are houses selling for $70,000," Dinits said.

The median price paid for a single-family home fell 13 percent on Kauai to $446,500 and nearly 6 percent to $282,500 on the Big Island. But while the median condominium price rose 26 percent to $357,000 on the Big Island, Kauai's median condominium price fell 24 percent to $395,000.

Home sales on Big Island and Kauai rose in October

http://www.bigislandrealestate.com

Obama Signs Homebuyer Tax Credit Expansion Into Law
President Obama today signed legislation to extend and expand the $8,000 first-time homebuyer tax credit that had been set to expire at the end of the month. These tax credit changes are included in the Worker, Homeownership and Business Assistance Act of 2009, which also extends unemployment benefits to people who have been jobless for more than one year.

The new legislation extends the deadline for the first-time homebuyer tax credit to include home purchase contracts entered into by April 30, 2010 and closed by June 30, 2010. The tax credit was also expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence — if they have lived in their current residence for at least five consecutive years of the past eight years.

Homebuyers looking to take advantage of either tax credit are subject to income eligibility limits of $125,000 for individuals and $225,000 for married couples, up from the limits of $75,000 and $150,000 included in the previous law. The home purchased must cost less than $800,000 to qualify the homebuyer for the tax credit. And to help guard against fraud, buyers are required to attach documentation of the home purchase to their tax return.

After signing the bill into law this morning, President Obama said "the rebound in the housing market was one of the big factors that contributed to the growth of the economy last quarter, and brought hundreds of thousands of families into the housing market. We want to give even more families the chance to own their own home."

NAR economists estimate that the current tax credit has contributed approximately $22 billion to the general economy, and that approximately 2 million people will take advantage of the tax credit this year.

For Sale By Owner, Don't Try This at Home.

"Should I sell my home on the Big Island myself? It's a question thousands of homeowners ponder each year, and the majority is motivated by a perception that the For Sale By Owner (FSBO) process saves sellers time and money.

"FSBOs often make the decision to sell their houses on the Big Island themselves because they think it is easy, and the home will sell quickly," says Howard Dinits, CRS, of RE/MAX Resort Realty in Wailea Maui Hawaii 96753 "Certainly, they want to save the commission and quite honestly feel the soft market makes it hard to break even."

Unfortunately, the do-it-yourself approach doesn't always end successfully. Before making a decision, here are a few things to consider.

1. Howard Dinits RS CRS sells homes for more money.
Some 61 percent of FSBOs sell their homes themselves to avoid paying the commission fee. However, the typical FSBO home sold for $25,200 less than an agent-assisted home. That's $163,800 for FSBOs, compared to $189,000 for agent-assisted homes.

2. Howard Dinits understands the ins and outs of the complicated Hawaii Real Estate transaction process.
It is a Realtor's job to guide and support clients during the sale of a home. They also help mitigate the overwhelming and time-consuming contracts, forms and disclosure statements required throughout the process. The most challenging tasks for FSBOs include: preparing/fixing up the home for sale; getting the price right; understanding and completing paperwork; selling within the time planned; and attracting potential buyers.

In addition to their deep knowledge of the real estate process, Dinits reminds FSBO sellers that CRS-designated REALTOR's care about where and when they want to move, as well as how much money is needed from the transaction. "CRSs demonstrate client service by involving sellers as much as they'd like. On the front end, agents know that marketing the home effectively leads to broader exposure. They appropriately follow-up with each prospect and alleviate a common FSBO fear of missing out on reaching the right people."

3. Howard Dinits CRS knows how to market your Big Island home effectively.
Getting the word out is essential for a successful and timely sale, so agent-assisted sellers benefit from frequent use of a wide array of marketing tactics. FSBOs rely mostly on yard signs, newspaper advertisements and open houses to incite buyer interest. Only 24 percent use the Internet to market their homes, while 72 percent of agents do.

"The biggest challenge for FSBOs is getting enough exposure for their home," Howard continues. "The Big Island newspaper captures only 1 percent of potential buyers, the Internet captures 32 percent, and the Multiple Listing Service (MLS) captures 51 percent.

"When FSBOs convert to listing with a REALTOR?, they find the tools Howard uses to reach potential buyers very valuable. We go beyond the MLS by reaching buyers who visit www.REALTOR.com, AOL, Yahoo! and MSN. CRS-designated REALTORs? in particular enjoy extensive relocation networks that bring in buyers from all over the country."

4. Howard Dinits is trained to overcome objections, negotiate and remain impartial.
Selling and buying real estate is an emotional process for homeowners. When its time to negotiate price, Howard Dinits is his clients' advocates and can compile statistics and research, balance offers and counteroffers, and handle many of the contingencies that can be frightening and frustrating for buyers and sellers working alone.

"FSBOs in Hawaii underestimate the amount of follow-up required," Howard says. "Potential buyers tour their homes, but the owners typically are not sales people and end up telling more than selling. The pride of ownership doesn't translate into a sale follow-up does. When Howard Dinits, instead of owners, works with buyers, it helps shield the emotion of buying and selling away from the negotiation."

5. Howard Dinits' clients are satisfied.
  Since 2005, 83 percent of sellers worked with a real estate agent. The majority of sellers who work with Howard Dinits believe they benefited from his experience and knowledge of the real estate market, and 95 percent report they would use Howard again or recommend him/her to others.

Not convinced and you still want to sell your house on your own?
There's a FREE service http://fsbohawaii.info/

provided by Howard Dinits RS CRS
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877-434-6487

In addition to striving to be the Best Real Estate Agent on the Big Island, Hawaii. Howard Dinits is also an innovator with the first Big Island Real Estate Agent Site with an iPhone application allowing you to search for REO's, Bank Owned Properties, and Foreclosures with your iphone for Big Island Real Estate, Homes in Hilo, Pahoa, Hamakua, Kailua-Kona and Waikoloa all can be searched on your iPhone.

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

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Big Island Real Estate Sales
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For the week of Sept. 28-Oct. 2

Extending Homebuyer Tax Credit Best Tool for Sustaining Big Island Housing Recovery

The best available tool for sustaining the still-fragile 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, big, island, real, eastate

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.

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.

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