Best Buys at Halii Kai and Kolea – Inventory Down, Prices UP
Only a few best buys left at desirable beachfront Kolea and oceanfront Halii Kai condominiums
Economics 101 is in play at Hali’i Kai and Kolea, the two most desirable Waikoloa Beach Resort condo locations. When demand is strong and supply decreases, the result is that prices increase, and that is as true in real estate as in widgets. My Hawai’i Life teammate, Pam Deery, and I have a number of listings at both locations, and the most recent appraisals on our short sale listings have come in HIGHER than the previous appraisal.
Both of these Kohala coast resort properties have had healthy sales in the past 12 months: 21 at Hali’i Kai and 15 at Kolea for a total of 36 sales (prices ranging from $395,000 to $2,550,000), with another dozen properties showing as contingent. The autumn months are traditionally the slow season in Hawai’i second/vacation home destinations, with sales picking up again in the Thanksgiving through Easter “high season.” That does not seem to be the case this year as we’ve all been juggling showings and offers this month.
3 Remaining Best Buy Opportunities
Best Buy #1: Halii Kai 18H short sale—1,403 sq. ft. 3-bedroom condo for $415,000
This is a Hawai’i Life listing.The buyer unfortunately dropped out due to personal circumstances just as we had an approved counteroffer from the lender. The appraisal came in at a mid-$400,000s level, which is not surprising given that the developer has been selling 1,082 sq. ft. 2-bedroom units in adjacent buildings for $395-$405,000! The negotiator says we can make the deal work at $415,000 (remember this is an unfurnished price) and remember that in a short sale buyers are sometimes asked to pick up closing costs that would ordinarily be the responsibility of the seller.
Best Buy #2: Halii Kai 5G ocean view—not a short sale at $750,000
Another Hawai’i Life listing, this is a distress sale but not a short sale unless you are thinking of a low ball offer. And if you are thinking to low ball, remember that the lender holding the mortgage is going to be ordering an appraisal to evaluate whether to accept your offer. Among those 21 year-to-date sales, 4G which has no ocean view sold for $660,000 unfurnished and 7F with ocean view sold for $883,000 (both of these were developer close-out sales). You can also negotiate a deal on Tommy Bahama furnishings that cost $95,000…and this turnkey unit was never, ever rented so is as clean as a developer offering.
Best Buy #3: Kolea 9D short sale—just reduced to $495,000
This one is still in a rental pool and current on HOA dues, according to the listing agent. That’s important as one reason short sales can fall apart is disagreement over who will pay delinquent dues. I think this short sale did not get an offer for only two reasons: first, it was priced way above recent sales at $630,000; second, it rents so well it was never available to show! I just completed a short sale on the same floor plan in building 15 at $450,000. It is ripe for the picking now.
To make an offer on any of these you will want to have a prequal letter from a lender if you plan to finance (and you will need at least 30% down), or proof of funds if you plan to pay cash. For more information, contact me!
A hui hou,
Beth Thoma Robinson, R(B)