On certain evenings from May to July, for a few hours after sunset on nights when the air is warm and still, Hawaii residents will often find termites flying around outdoor lights and sometimes even indoor lights, televisions and computer screens.

The “alates” or “swarmers” are looking for mates on nights like these.  Pairs that survive the geckos, toads and ants waiting in the wings to eat them will likely become the founders of new colonies.

According to the University of Hawaii’s CTAHR Cooperative Extension Service, the two most common types of termites in Hawaii are the West Indian drywood termite and the Formosan subterranean termite.

These termites cause over $100 million in damage to structures in Hawaii each year, so homeowners are advised to be vigilant about treating infestations as they are discovered.

View CTAHR’s Hawaii Termites – An Identification Guide (PDF)

Buyers are advised to have a professional termite inspection during the inspection period agreed upon in the “Termite Provisions” section of the Purchase Contract, which states:

The obligation of the Buyer to purchase the Property is contingent upon the delivery to Buyer within the time specified…an inspection report stating there is no visible evidence of active (i.e., live) termite infestation, or the treatment of such improvements by no later than five (5) days prior to the Scheduled Closing Date.

Sellers are required to disclose “any prior and/or current infestation and damage of which the Seller is aware.”

For the rest of us, turning off as many lights as possible between 7:00 and 9:00 pm is the best short-term solution.  And contacting a professional for an inspection if you see tell-tale droppings or mud tunnels is recommended in order to protect the value of your real estate investment.

MORE RESOURCES:

The University of Hawaii Termite Project has an interesting collection of photos and several helpful tips for homeowners and buyers.  Here are links to a few pages that may be especially helpful:

• Inspecting the property of a previously-occupied home
• Understanding termite-resistant building material options for new homes
• Homeowners Guide: Prevention and Control

Cynthia Hoskins, R(S) is Clark Realty Corporation’s Social Media Liaison
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A turn onto Puako Beach Drive, between mile markers 70 and 71 on Queen Kaahamanu Highway, leads residents and visitors down a winding road toward the coast and into this relaxed tropical haven that gracefully retains a distinct sense of Old Hawaii.

As you enter Puako, you will pass the Puako Small Boat Ramp and then the Hokuloa Church on the right. After two years of construction, this historic church was dedicated on March 21, 1860.  Still home to an active congregation, the church was renovated in 1990 and represents the residents’ commitment to preserving a history of the local community.

Down the road just a bit is the M’s Puako General Store, which opened in 1987. Owned by Narand and Urmila Patel, the General Store is a low-key gathering place where residents and guests of Puako’s vacation rentals are able to pick up a variety of supplies, relax with an ice cream after a walk to the beach, or borrow a book from the exchange shelf on the lanai.

Click here to view all Puako Beach Lots listings.

Beyond the General Store, Puako Beach Drive leads past many architecturally significant modern homes, several cottages and even a few remaining classic plantation-style homes, reminders of Puako’s varied history. Once accessible only by boat, the area surrounding Puako has been home to a sugar plantation, as well as “a charcoal making-operation, a honey-bee operation where bees were being shipped to Sweden, a hog farm, and a salt operation with salt sold to whalers and for meat.” (Mary Morrision, North Hawaii News, Nov. 30, 2000)

Known for family-friendly tide pools and beautiful views of Maui (across the Alenuihaha Channel to Haleakala), and of the Kohala mountains and Mauna Kea sunrises, Puako is also located near some of the Kohala coast’s most treasured natural and historic attractions.

The Puako Petroglyph Archaeological District is nearby, as well as Hapuna Beach State Park and miles of dive and snorkeling spots. Green sea turtles, a protected species, make themselves comfortable on Puako shores and humpback whales make their way from Alaska through the channel each year to breed in Hawaii’s warm waters.

With all this beauty and natural diversity comes responsibility to promote conservation efforts, so the Puako community has organized the Makai (Sea) Watch Program. Near beach access points, signs from the State of Hawaii provide reminders of the protected status of much of the wildlife found in this delicate ecosystem. The area is part of the Puako Bay and Puako Reef Marine Fisheries Management Area managed by the State Department of Land and Natural Resources.

The rich history and natural beauty of Puako set this small Kohala coast neighborhood apart and make it one of the Big Island’s most sought-after oceanfront communities.

If you are searching for a luxury permanent residence, a property where fractional ownership may be an option, or if you want to be alerted when there is a listing available in the Puako Beach Apartments, we value the opportunity to answer your questions about the real estate market in Puako.

Please contact us for more information about real estate opportunities on the Kohala Coast of Hawaii’s Big Island.

It’s no secret that it has become more difficult over the last year to obtain conventional financing for the purchase of a property on the Big Island of Hawaii.  Banks and lenders are being cautious as they sort out new regulations and changes in how appraisals for certain loans are handled.  Lending options for Lava Zone 1 and 2 properties have become more restricted.  Loans for vacant land are rarely seen these days.

So, what’s a buyer to do?

First, of course, is to determine whether your personal financial situation is secure and you are ready to take on the responsibility of new debt.  If you are, there are alternatives to conventional financing that you and your agent can explore:

Purchase Money Mortgage/Agreement of Sale:
In some markets, seller financing is almost unheard of, but it’s a little different here on Hawaii Island.  There is a long tradition of transactions using Agreements of Sale and Purchase Money Mortgages.  In fact, there have been 118 listings sold using seller financing so far this year.  Down payment and interest rate terms are negotiable, but buyers should expect that most sellers will do a thorough credit check, so your credit rating is still very important.

Recognizing the differences between Agreements of Sale and PMMs is also important.  In an Agreement of Sale, the seller retains legal title until the buyer has fulfilled the obligations of the contract, but, otherwise, the buyer has full ownership rights and responsibilities. With a Purchase Money Mortgage, title is legally transferred to the buyer at the close of escrow.  A PMM is similar to a bank mortgage.  If you elect to use an Agreement of Sale or Purchase Money Mortgage, be sure you seek appropriate legal advice and fully understand the terms of your contract.

USDA Rural Housing Loans:
This is a great program for Hawaii Island, since most areas of the Big Island (with the exception of Hilo) are eligible.  Families with moderate but dependable income will usually fall within the income limits, and there is no minimum credit score required.  This program will allow the buyer to receive assistance with closing costs from the seller and, in some cases, the loan can be for up to 102% of the appraised value with zero down payment.  Homes that qualify for this program must be 100% habitable at the time of closing.

For more information view the “Guaranteed Rural Housing Loans” publication by USDA Rural Development (PDF).

FHA 203(K) Rehab Loans:
The 203(K) Rehab loan is a seldom-used program in Hawaii, but the Honolulu HUD office emphasizes that the loan is available for Big Island buyers.  This loan program is designed to allow a buyer to purchase an existing home that is in need of renovation or modernization, but to do the repairs after the close of escrow.  Funds approved for the renovation are held in escrow and disbursed in increments as the work is completed.  There are additional paperwork requirements and additional fees for a 203(K) loan, but, in a market where sellers may be unable to do necessary repairs before closing and buyers don’t have substantial cash reserves for repairs, this loan may be worth considering.

For more information read Rehab a Home W/HUD’s 203(k) on the US Department of Housing and Urban Development website.

At Clark Realty, we recognize the challenges of this unique market, and we will do our best to work with buyers and sellers to make the most of the opportunities presented by these challenges.  If we can answer more questions for you about these or other financing options, please feel free to contact us!

This is especially important for anyone considering purchasing property on the Big Island of Hawaii. Here is one test for anyone thinking of using a mainland lender: when interviewing, ask your loan officer if he/she has ever successfully completed a loan for a property in a Lava Zone (yes, all properties on the Big Island fall into an assigned Lava Zone designation–and this is often a surprise to lenders who work outside Hawaii Island). If this is an unfamiliar concept for your lender and the underwriters with whom he/she works, then you can expect that you may have unnecessary delays throughout the escrow process when other issues unique to Hawaii arise. There certainly have been cases where transactions have fallen apart because Sellers give up on a Buyer who has requested numerous extensions while working with lenders unfamiliar with the ins and outs of Hawaii’s real estate market.

There are numerous local lending institutions and mortgage brokers on-island and ready to serve you–and your Realtor will be happy to provide you with referrals for lenders who understand the area where you are concentrating your property search. As a Buyer, consider interviewing a few local lenders to see who can best meet your needs—in the end, it may mean the difference between a lost opportunity or a successful close!