Auctioning off the high end… gasp! At Hualalai Four Seasons Resort
Many of you reading this blog are likely to have visited the Big Island in the past, and perhaps you were one of the lucky ones fortunate enough to spend a night or two – or a week – or a month, visiting the Four Seasons resort at Hualalai. Arguably one of the best resorts in the world, The Four Seasons Hualalai prides itself on its exclusive, yet down-to-earth “vibe” and, of course, it’s world-renown customer service. It’s no wonder that owning a home in this resort has been a dream for many – and reality for some. Today this dream is one step closer for two lucky bidders as for the first time ever, two homes at the Four Seasons Hualalai at Historic Ka’upuhelu Resort went on the auction block with no reserve.
I was fortunate enough to preview these two homes last week with some clients who have decided not to participate in the auction. In an interesting twist of fate, I recall being on this very street previewing lots about four years ago with a Broker colleague, and we stopped to take a good hard look at these houses as they were being framed – we were in sticker shock at the then-asking-price of somewhere around $10-12M for each home. Apparently, as it turns out, no one else felt they were worth paying that price either…the developer was eventually foreclosed upon – and the FDIC recently took over the bank that held title to the house. Hmmmm. Trouble in Paradise??
When asked if the auction today would “re-set” the pricing for homes at Hualalai, the on-property Realtor thought probably not. I understand his point – at the very high end of the market, most owners do not have to sell, and thus can literally afford to sit around and wait to sell their property at a price they dictate. However, this is no ordinary market, in a very non-ordinary economy… we will know for sure in 30 days when the two properties close. What we know now is the auction was “fast and furious” – there were 12 bidders and both properties were under contract in 10 minutes time. Perhaps the face of the luxury property market along the entire Kohala “Gold” Coast is about to get a thorough scrubbing.