My Hawaii Life colleagues and I have been reporting on the disappearing inventory in the Mauna Lani real estate market, which has us scrambling, even before the start of the official winter “buying season,” to find deals for our clients.
We still get many inquiries asking about short sales and foreclosures, as news reports in Mainland publications talk endlessly about shadow inventory. I’ll get around to Mauna Lani shadow real estate inventory in a moment, but first, let’s look at whether there are best buys in distressed properties for sale at the Mauna Lani Resort.
There are currently three “foreclosures” (more properly, bank-owned or REO properties) listed at Mauna Lani, with one in escrow. In addition to the two I mentioned last month, both of which are still on the market, a Kulalani 2 bedroom was listed as a REO and put into escrow, and a three bedroom in a good location at Fairways at Mauna Lani (MLS# 249202) has been listed for $525,900.
While not as cheap as some REOs have sold for (in the adjacent building 5 one closed for $476,000 early this year), the two listings of this floor plan currently on the market are priced at $645,000 and $695,000 in less attractive locations.
This 3 bedroom Fairways at Mauna Lani REO qualifies as a Best Buy at $525,900 in a stable to upward market
Turning to short sales, there are only five properties listed as active short sales at Mauna Lani (and two with accepted offers submitted for lender approval). The lowest priced one, a 3 bedroom for $399,000 at Palm Villas (MLS# 243944), is in direct competition with the REO (foreclosure) listing. Remember, this floor plan has three tiny bedrooms squeezed into 1,197 sq. ft…and with the lawsuit between the homeowners and the developer, financing is currently not available at this condo community.
Another short sale that doesn’t look like a best buy at the listing price is Golf Villas C1 at $649,000. A great unit, reduced from $720,000 asking price, but since short sales are always sold unfurnished (or furniture under separate bill of sale), and Pam and I sold our 3 bedroom listing in building N for $595,000 furnished earlier this year, one would hope the seller is realistic in accepting an offer subject to lien-holder approval.
By the way, Golf Villas had 4 or 5 units in the foreclosure pipeline before recent changes in the Hawaii foreclosure law took them out of the non-judicial (trustee sale) process. Whether they turn up as short sales or REOs, this is one of the few resort communities where I am aware of any significant shadow inventory.
Fairways at Mauna Lani 1303 (MLS# 248024) is listed as a short sale for $469,000 (with various nice furnishings available separately). Although on the interior of the complex rather than along the golf course, it has a private feel…and in my opinion, offers should be below the $460,000 level, where a short sale in building 7 sold at the beginning of 2011. By the way, I did a “staycation” in this floor plan last April and enjoyed the spaciousness of the living area and master suite.
These furnishings are available under separate bill of sale in a short sale purchase
The two active short sale listings at the Villages at Mauna Lani are best buys for the buyer at a higher target price point. Whereas the REO (foreclosure) is, in my opinion, still a deal in the 600 row (MLS# 246323) for $739,900…(MLS# 246202) is also a Maile floor plan in the premium outer 400 row…asking for the short sale is $959,000, but I would try an offer under $900,000 as it isn’t the best location in the row.
Top-of-the-line at Villages is the short sale on 724 (MLS# 248624), a Kahili home with its own pool and spa. It is listed at $1,399,000 (seller paid $2,200,000) with furnishings not included.
Two other sales in the 700 row this year were at $1,407,000 for a bank-owned property and $1,450,000 for a fully furnished one. Banks are responding on short sales more quickly than in the past; feel free to contact me if you want to discuss what it takes to offer on a luxury property short sale successfully.
A hui hou,
Beth Thoma Robinson, R(B)