The Amenity Center at Kauna’oa, Mauna Kea, town homes start at $2,500,000
In our current market, where supply exceeds demand, a developer condo, home, or even land can sometimes be the best deal in town!
Here are a few reasons why:
- Price: Let’s face it, the developer most likelyÂ started the project, or at least did the groundwork, before the real estate bubble burst! Now, many developers are exceedingly motivated to liquidate remaining inventory because of issues like debt servicing, needing capital for futureÂ groundwork, scaling back, orÂ closing downÂ a project, or meeting lender time lines.
- Replacement: The developer mayÂ likely be selling at “below replacement cost.”
- Warranties: The developer may even offer equipment, appliance, and even construction “fit and finish” warranties. You won’t get that, (andÂ maybe not even a disclosure statement),Â when you buy an “as-is” distressed property.
- Amenities: The developmentsÂ often haveÂ communityÂ fitness, recreation centers, and plush resort pools!
- Incentives: The developersÂ oftenÂ offer “buyer incentives.” They may throw in a furniture package, closing creditsÂ and/or Homeowners Association (HOA) fees.Â This is a way forÂ the developer to keep the “actual sales price” in a respectable zone. In these cases, the buyer can save big time on out of pocketÂ costs.Â I’ve seenÂ a buyer get a fully furnished unit PLUS 2 years of HOAÂ fees! With a decent down payment and/or low financing, that buyer had minimal expenses for two years. Sweeeeet!
Buying developer inventory can be an incredible way to get a great deal now onÂ a new or never-lived-in property. I have some favorite projects that come to mind. Here are a few:
Kumulani at the Uplands, Mauna Kea, asking $550,000 (MLS# 235950)
KaMilo at the Mauna Lani Resort (MLS# 235991) asking $699,000
Sunset Ridge home in Waikoloa Village (MLS# 241751) asking $334,900
Oceanfront Amenity Center at Hali’i Kai at the Waikoloa Beach Resort (MLS# 238297) $475K