Notice recently appeared in the Hawaii Island newspapers of a Kohala Ranch residence to be sold at auction as a foreclosure this month. Residential foreclosures have been rare in recent years; properties sold by auction at the flagpole rarer still. Although the bank holding the mortgage usually prevails at these auctions via credit bid, itʻs still worth previewing the home if youʻre looking for a Kohala Coast residential property.
Abandoned Kohala Ranch home in foreclosure to be auctioned March 20, 2017
What’s the Kohala Ranch Foreclosure Worth?
The property to be auctioned is a one-story single family home with 7 beds/7 baths but only 4,008 sq ft under roof (per tax records, which may be inaccurate), on a 3-acre lot typical of the lower Heathers section of Kohala Ranch. Previous listings indicate the home was built by a couple who themselves were architects as a contemporary-styled main house and attached guest quarters. The residence also has two separate garages, a pool, and a putting green.
The property will be sold AS IS, WHERE IS, and the deferred maintenance is obvious from the exterior. So obvious it is a favorite topic among those of us who walk our dogs (or just ourselves) around the Olomana-Kaala loop in the mornings. The way most prospective buyers will have to evaluate it is to figure out what it would be worth when all fixed up, and how much it will take to get it there.
Last year this Kohala Ranch 3 bedroom home with 1 bed/1 bath guest quarters, pool, and views sold for $1,975,000
There is a distinct preference among Kohala Ranch homebuyers for “newer,” meaning built to current tastes. This house was built in 2007 and old listings show the finishes and features considered most desirable, such as travertine floors and doors that open for indoor-outdoor living. A possible comp: our listing of a 3,041 sq ft home with 3 bedrooms in the main house and attached one bedroom guest quarters sold for just under $2 million in 2016. Then subtract renovation costs…
Open Houses & Auction Information
The big question mark is the current state of the foreclosure property. Thatʻs why attending one of the two Open Houses will be important for prospective bidders. The home is open this coming weekend, Saturday, March 4 from 9-11 AM and Sunday, March 5, from 11 AM – 1 PM.
The auction is on Monday, March 20th, at noon at the flagpole at Hale Halawai in Kailua-Kona. Bidders should come prepared with 10% of their bid in cash, money order, certified check, or cashierʻs check.
While I canʻt assist you at the auction, there is, as I mentioned, a good chance the bank will take it with its credit bid. That means the home will be on the market as an REO in a few months, and we can be prepared to make an offer then.
A hui hou,
Beth Thoma Robinson, R(B)