Question: Is it a buyers’ market, a sellers’ market or a balanced market?

Answer: For a macro view of any real estate market, you need to look at months of remaining inventory (MORI). MORI measures how long it would take to sell the entire existing inventory at the current rate of sale. Six months is typically considered the dividing line between sellers’ and buyers’ markets. Less than six months indicates a sellers’ market. In December of 2011 there was a 4.5-month supply of single-family homes and a 4.7-month supply of condos on Oahu. With low inventory overall, the market seems to be trending toward more of a sellers’ market. To answer this question far more effectively, however, you really need to look at the MORI from neighborhood to neighborhood and building to building. While it may be a sellers’ market in one neighborhood or building, it may be a buyers’ market in another.

Q: What kind of deals can be found in the short sale or foreclosure market, and what should buyers be aware of before purchasing a short sale or foreclosure?

A: Contrary to popular belief and largely due to our limited inventory of available properties for sale, short sales and foreclosure properties in Hawaii are, for the most part, sold fairly close to market value. If the property is in poor condition, in need of repair or stripped of appliances and fixtures, there are opportunities to purchase "a deal" while there are relatively few "steals." With short sales, approval from the seller’s lender may be required, which can cause significant delays in closing. As a result, many short sales do not close. With foreclosures there are liabilities such as no seller’s disclosures and the property is sold "as is." Buyers need to conduct thorough inspections to ensure they are not taking on more than they can handle. Foreclosure sales contracts are worded in a manner that minimizes the liability to the bank and prevents recourse from the buyer. Buyers must do their due diligence.

Q: What improvements should be made before listing a home?

A: According to the National Association of Realtors, the improvements that make the most difference are those that require minimal time and expense. A small investment in sweat equity can have a big influence on how quickly your property sells and at what price. To answer this question more directly, this will be determined primarily on how quickly you need or want to put your home/condo onto the market and your available capital. If there is a need to sell quickly and you have limited capital, it is best to focus on the basics: curb appeal, cleanliness, de-cluttering, de-personalizing and some cosmetic improvements like a fresh coat of paint and possibly new flooring. Adding some special touches and flare by effectively staging a property will make a big difference as well. If you’ve got the time and the money, updating and remodeling the kitchen and bathrooms adds significant value to any home.

Q: How tough is it to get a home loan on Oahu, and what loan options are out there besides the conventional 20 percent down payment models?

A: In reality it’s not as hard as some will lead you to believe. Borrowers, however, must qualify and prove they are worthy of credit by having adequate and stable income, good credit scores and evidence of funds for a down payment and closing costs. Qualified borrowers can obtain conventional financing with as little as a 5 percent down payment or FHA financing with as little as 3.5 percent down payment. There are also no down payment VA and USDA mortgages for qualified borrowers. The USDA mortgages are limited to certain areas of Oahu. The Mortgage Credit Certificate will soon be available again for a limited time for qualified first-time homebuyers.

Q: How has technology changed the way people search for a new home?

A: Ninety percent of all homebuyers now begin their search online. What was once information only available to realtors is now accessible 24/7 to anyone with a connection to the Internet. On our real estate website, www.PrudentialLocations.com, buyers can search for all property types including those in MLS, new construction, foreclosures and for-sale-by-owner properties. They can set up saved searches so they are alerted by email as soon as a new listing that meets their criteria comes onto the market. We even have a mobile app that allows anyone with an iPhone or Android instant access to property information whenever and wherever they want it. Those who take advantage of the technology now available have a competitive advantage in the marketplace.

Interviewed by Allison Schaefers. "Akamai Money" seeks out local experts to answer questions about business in Hawaii. If you have an issue you would like us to tackle, please email it to business@staradvertiser.com and put "Akamai Money" in the subject line.