By Lisa Scontras

Selling real estate today requires an analysis of recent sales to determine the right asking price or run the risk of not measuring up to the competition.

"Sellers continue to divide themselves into two distinct segments, realistic and unrealistic prices," says Scott Higashi, executive vice president of sales at Prudential Locations LLC. "As in 2006, realistically priced homes will sell quickly while those with inflated prices will continue to sit on the market."

Artie Wilson, partner at Prudential, calls it "wishful" pricing, and says it's quite common for some sellers to be slow to accept the fact that the market has shifted.

"They're still looking at the house down the street that is on the market right now (priced unrealistically) or a sold price from a year or two ago," says Wilson. "Buyers on the other hand, have gone the other way and want to see prices drop. They have access to what's sold in the last three months and know what other homes are going for."

Buyers, according to Higashi, have access to sales information and can track homes that are currently listed in the neighborhood, sales that are pending as well as homes which have sold, giving them the tools they need to accurately determine a property's market value. They care more about recent sales than they do the highest sale.

Since the very definition of market value is what a buyer is willing to pay for a particular home, the pros recommend putting yourself in their shoes.

"I often recommend to sellers to go out to see the other competitive listings," says Wilson. "It's critical for sellers to be educated and have the most current information available to make the most logical decision."

It's important for sellers to see how their home compares to the other homes in the area. Buyers may look at a dozen homes and if your home is priced too high, it will not fare well against the others. Additionally, inventory is sufficient in this market that buyers may never even look at overpriced homes.

Excessive days on the market - more than four months according to the experts - usually means you're not priced right. According to recent statistics gathered by Prudential Locations, condominiums are typically on the market for approximately 61 days and single-family homes for 62 days before a contract is accepted.

Shopping for the perfect condo

Statistics reported by the Honolulu Board of Realtors show that nearly 6 out of every 10 transactions on Oahu last year were condo sales.

"With second-home sales strong and an emergence of younger home buyers flooding the scene, condos are becoming a demographic favorite whether you're retirement planning or buying your first home," says Wes Young, vice president of the residential loan department at First Hawaiian Bank.

Like any rite of passage however, condo living is a transition and great care should be taken in selecting the right one. Condos are like ice cream in the many choices available. There are condos with spas that rival five-star hotels (yes, they even have concierges and valet parking), condos with exercise rooms, tennis courts, wireless Internet, restaurants, even dog parks.

Long-time condo dweller and staff appraiser at First Hawaiian Bank Roy Hebard, says there's no better way to enjoy the island lifestyle than condo living.

"I haven't mowed a lawn in 25 years," Hebard brags.

And while everyone's "must-have's" list will vary, here are some concerns the first-time condo buyer might consider when shopping for the perfect unit/amenity package.

1. Does the building allow pets? If you have a pet or plan to get one, check the house rules to see what the restrictions are as some buildings will only allow pets up to a certain size or weight.

   "It seems like the new buildings are allowing pets again," says Hebard. "The trend has been reversing - at least in the high-end buildings - perhaps because there are so many empty nesters who are downsizing and want to bring their pet with them. They're already making a big commitment to moving into a smaller space ... at least if they can bring their pet with them, it's one less obstacle."

2. Is there a trash chute in the building? Or what is the method of trash disposal? Is there a dumpster? How often is it picked up?

3. Is there a washer and dryer in the unit? If not, some condos have coin-operated machines in laundry areas within the building. Find out where they are in the building, if the room is well lit, and if the machines all work.

   "This is something you'll want to know, because there are fewer and fewer laundry mats in this town," warns Hebard. "If you have kids and do laundry every day, it may be tough to do without one."

4. Does the unit come with parking? Parking spots in this town are valuable assets and don't always come with every unit. Find out what parking is available - either as part of the purchase price or for an additional charge and if the spots are assigned, covered and secured.

5. Is there guest parking? Or do guests have to fend for themselves finding street parking?

   "If you like cooking and you like to have friends over for dinner, this can affect your ability to entertain," adds Hebard.

An expert offers tips on avoiding foreclosure

As subprime borrowers reach the end of their locked-rate terms on their loans, mortgage payments are going up - sometimes dramatically exceeding their ability to pay. But homeowners can take steps to avoid suffering the ultimate loss of foreclosure, even in a rising-interest-rate market.

Andrew Housser, co-CEO of Bills.com, says the timing of the subprime problems together with prices which have stabilized or gone down in some areas has created a situation where foreclosure seems the only option for some.

Housser offers several suggestions to avoid getting into a foreclosure situation:

1. Put enough down. Housser suggests making a down payment of 10 to 20 percent of the home price.

2. Avoid interest-only loans and other mortgages that might increase.

   "If you can't afford a home with a traditional mortgage, you probably can't afford the home," Housser advised. With some rare exceptions, "it's best to continue saving until you can afford a home with a fixed-rate mortgage."

3. Don't take a cash-out refinance. Consumers should avoid refinancing their home to take cash to pay off debts or go on vacation unless they have a very high percentage of equity.

For those who have already missed payments and are at dire risk of foreclosure:

1. Request a forbearance agreement. For a temporary hardship - for instance, an earner has an unusual, seasonal loss of income - lenders might grant a forbearance agreement to lower or eliminate payments for a limited time.

2. Modify the loan. In unusual circumstances, some lenders will modify a mortgage loan, such as lowering the payment and extending the loan's term, or incorporating any delinquencies into future payments.

3. Obtain a "deed in lieu" of foreclosure. A "deed in lieu" essentially allows the borrower to return the title or deed of the property - giving the home back - to the mortgage holder to avoid foreclosure. The borrower forfeits any equity in the property, but does not have a foreclosure on his or her credit record.

4. Sell the home. Selling the home may not be ideal, but it is a way to avoid foreclosure proceedings on the house and repay the lender. In a housing bubble situation, the home may be worth less than the mortgage amount. These cases might require special permission from the lender to sell the home at a loss, for its current value.

HS