Bank-Owned Kohala Ranch Home For Sale

It has been a while since we saw an REO (bank-owned property after foreclosure) for sale at Kohala Ranch. Not since 2018, to be exact. This just-released listing has the location and features that draw buyers to the lower Kohala Ranch Heathers section, and yet there is still potential for a buyer to get a relative deal in a very competitive market.

Rewarding coastline and sunset views from this Kohala Ranch bank-owned listing that just hit the MLS for $1,895,000.

History of the Bank-owned Kohala Ranch Home for Sale After Foreclosure

This Kohala Ranch Heathers residence was built as a spec home and sold to the original — and until now only — owners in 2005 for $1,695,000. We listed it as a short sale in 2010 but it failed to close…we did have a buyer, but the lender wanted a seller contribution and the sellers chose to walk instead. Subsequently the Kohala Ranch homeowners association foreclosed for unpaid dues, and maintained the property as a rental until the lender finally completed its foreclosure this year.

And the view looking in the direction of the setting sun.

The listing is a bit poetic, but here are basics on the home, including some evaluation of condition in case you canʻt get in to see it in the next couple of days before it gets multiple offers:

• 3,425 sq ft on a little over 3 acres.
• Technically 4 bedrooms. Three are generously sized bedrooms with en suite bathrooms; one has always been used as an office but has a small closet and appears on the permits as a bedroom
• Large kitchen with a well-placed island, plenty of cabinets, and granite counters. The 6-burner gas range and the double oven are original. The refrigerator and dishwasher (and the washer and dryer) are ready to be replaced.
• Original carpet in bedrooms and living room. Travertine tile in kitchen and entry/dining room.
• Your budget should include fresh paint inside and out; replacing windows and doors or at least the screens; adding photovoltaic for the house and the currently unheated pool.
• The landscaping and pool has been maintained by the association and so are in decent shape.
• Elevation around 800ʻ above sea level; you have air conditioning but will rarely need to use it.

Take the Listing Description with a Grain of Paʻakai

Is this the “hidden gem” of the Kohala Coast” as the listing says? Letʻs add a grain of salt.

Remember that an REO/bank-owned listing is always sold “as is.” You can and should get a professional home inspection, but the seller will make no repairs. A foreclosure listing is also exempt from the statutory requirement to provide a sellers disclosure. Thatʻs why inside knowledge can be important (should I insert a wink emoji?).

The listing mentions parking space for your boat or RV. You might want to read the Kohala Ranch governing documents carefully before you plan on that. (Let me know if you want a copy of the CC&Rs and Ranch Rules).

I was not sure what the listing agent had in mind by “perfect as your primary residence, vacation getaway or investment property.” Remember that the Hawaii County ordinance on short term vacation rentals would preclude using this home as a vacation rental property. However if by investment you are thinking will you eventually be able to sell at a profit…keep reading for my opinion on that.

Is This Foreclosure a Good Deal?

The lower Heathers section of the gated Kohala Ranch community shares the climate and views of the Kohala Coast resorts

The last Kohala Ranch bank owned property went for $1,342,425 in a bidding war at auction. We all thought the buyers were crazy given the amount of deferred maintenance on that one. But their timing was right and that home sold last year for $2,850,000!

Given the other active residential listings at Kohala Ranch, I predict this home will quickly attract multiple offers and could well sell for more than asking price.

And just one thing more in case you end up buying this home. Please donʻt use the name the listing agent gave it: Nalohia Makamae. I just spent 20 minutes picking this apart with a native speaker of ʻolelo Hawaiʻi as it had me completely puzzled. It does not translate well to “hidden gem” and some of the alternative meanings range from humorous to rather unfortunate. Remember, place names are important in Hawaiʻi. And so is using the language correctly. Sorry/not sorry for the soapbox.