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Foreclosure Auctions Hit Hawi

I recently wrote about the top choices in luxury big island real estate listings, but I missed one best buy opportunity. Notice was given in West Hawaii Today that an oceanfront Hawi property, previously on the market for a cool $17 million, is due to be auctioned off later this month with no upset price. It would have fit perfectly in my last post as an example of an estate that does not conform to the resort type.

“Estate” is a word thrown around rather loosely in real estate listings, but this property would qualify by any strict definition.

Oceanfront estate home in Hawi, North Kohala, set to be auctioned this month

The two-story residence is 9,809 interior square feet, 5 bedrooms, bathrooms sufficient that I lose count, 4-car garage, big lanais, both covered and uncovered, where I have lounged while whales came in so close I could hear them spout. If the grand staircase intimidates you, have no fear as there is also an elevator between the two floors. The property sits on over 20 acres, and because it was part of a small subdivision, and the subdivision codes say the entire oceanfront must be included in only one of the parcels, guess which one got the oceanfront?

Now, if I’m representing you as a buyer, I will also want to remind you that an auction requires you to pay for all the closing costs normally paid by seller, and this is an AS IS sale. That means if it turns out that there was damage related to the 2006 earthquake…or deferred maintenance…or the survey turns up an encroachment…well, you will need to remedy those things. So the price you offer should reflect risks and uncertainties. You will need to have 10% of your offer price in hand (cash, certified check, or cashier’s check). The property is available for viewing on this coming Sunday, October 17th; feel free to call me if you’d like a tour guide, as the commissioner is unlikely to be very familiar with the property.

The “Ranch House,” technically part of Puakea Bay Ranch near Hawi, is now a foreclosure

Not in the six figure real estate buyer category? Many prospective buyers were attracted to a listing that looked too good to be true: currently the only active residential listing in Puakea Bay Ranch is listed for only $589,000 (MLS 234385), impressive in a community where the most recent sale was at $1,800,000. It looked even more attractive a few months ago when the previous auction firm had it listed at only $399,900 starting bid. A Hawi area residence of 2,174 sq. ft. with a swimming pool on 4.4 acres…so what’s wrong with this picture? For starters, the survey map shows that the swimming pool and garage seem to be built in the old county road rather than the building envelope.

Technically, a part of Puakea Bay Ranch, but with an entrance outside of the gates of that community, you pay monthly dues but it is hard to figure out what the benefit might be. The second auction was scheduled for October 5th, but the auction was canceled that morning, and when I emailed the listing agent he could not tell me why. Another situation that bears watching, but only for a buyer/investor with time, money and expertise to put into this community landmark. Again, the home is already bank-owned, just not receiving any offers.

Maliu Ridge, Hawi best buy 2370 sq ft, 3 bed/2 bath on over an acre for only $565,000

My pick for a primary residence? You can skip the auction and pick up a new REO (foreclosure) at Maliu Ridge for only $565,000 (MLS 239355). Only a week on the market, this is a really nice house in a great neighborhood above Hawi with underground utilities, and friendly neighbors. The only drawback of this particular house, for some buyers, is that it has no ocean view. But honestly, no matter where you go and what you do on the Big Island you’ll be seeing the ocean all day. So once you get home, just focus on your family and friends and the sense of peace you have from knowing how lucky you are to be living a Hawaii Life!

A hui hou,
Beth

Beth Thoma Robinson, R(B)
Direct: 808.443.4588
Email: beth@hawaiilife.com

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Diane Chavez

October 19, 2010

Beth,
Great and informative article. Thanks for the information.

Diane Chavez

October 19, 2010

Beth,
Great and informative article. Thanks for the information.

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