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How Much Should You Offer on a Foreclosure Condo?

A look at the 16 vacation rental foreclosure sales in the last six months sends a clear message: step up.

​If recent history is any indication, this 2-bedroom foreclosure condo at Kapalua Ridge (MLS# 351327), listed at $514,900, will sell at or near its listing price

What’s the Driving Factor Behind Getting Your Offer Picked?

If you’re a serious buyer, and are looking at buying a vacation rental foreclosure, you’ll need to make a serious offer – that’s the clear message after an analysis of the 16 Maui foreclosure condos that have closed escrow in the last six months.

Every foreclosure I’ve seen that has been priced correctly has triggered multiple offers. I have successfully represented three buyers of foreclosure deals in the last year and all of them have had multiple bidders.

Each of them have gone beyond the first round of submitting offers, to a second round of each prospective buyer submitting his “highest and best.” Negotiation and commitment at this level of the game are key – this round determines who the bank picks to buy the property.

Price is the driving factor behind getting picked, but it’s not the only one. Prospective owner-occupants may get a nod, all other factors being fairly equal. Cash is king and sometimes trumps price. If you’re stubborn about concessions, you’re out – there are ways to get them, but going in hard in your offer is not one of them.

Maui Vacation Rental Condo Foreclosure Sales Statistics

The 16 Maui vacation rental condo foreclosures since early October 2011 ranged in sale price from $69,000 to $725,000.

Thinking of lobbing a low ball? Think about this: of the 16 sales, 10 of them sold for 98% or more of listing price, and seven of the sixteen sold at full price or higher. The median sale in these 16 traded at 99% of listing price. 14 of 16 sold at 92% or higher of listing price; the bottom two sold at 84% and 85%.

This is a great time to buy a foreclosure condo on Maui, but you have to commit to it. And I strongly recommend working with an agent who has done these deals, and know how they work – and I don’t mean the listing agent!

16 Maui Vacation Rental Condo Foreclosure Sales – October 2011 to April 2012 – By Price

List Sold

Percentage of Listing Price Paid

$74,150 $69,000

94%

$69,900 $69,900

100%

$105,000 $100,000

95%

$167,500 $157,000

94%

$229,900 $225,000

98%

$234,900 $234,900

100%

$249,000 $257,500

103%

$269,000 $270,000

100%

$339,000 $285,000

84%

$287,000 $287,000

100%

$375,000 $370,000

99%

$378,000 $425,000

112%

$568,500 $485,000

85%

$510,000 $510,000

100%

$559,000 $515,000

92%

$735,000 $725,000

99%

List Sold

By Percentage/Listing Price

$378,000 $425,000

112%

$249,000 $257,500

103%

$69,900 $69,900

100%

$234,900 $234,900

100%

$269,000 $270,000

100%

$510,000 $510,000

100%

$287,000 $287,000

100%

$735,000 $725,000

99%

$375,000 $370,000

99%

$229,900 $225,000

98%

$105,000 $100,000

95%

$167,500 $157,000

94%

$74,150 $69,000

94%

$559,000 $515,000

92%

$568,500 $485,000

85%

$339,000 $285,000

84%

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Jeremy Stice, R(S), Accredited Buyers Representative

April 8, 2012

Great work here Kevin- your message and delivery is spot on. Maui buyers would be well suited to work with such a knowledgable, experienced, and honest professional as yourself.

Jeremy Stice, R(S), Accredited Buyers Representative

April 8, 2012

Great work here Kevin- your message and delivery is spot on. Maui buyers would be well suited to work with such a knowledgable, experienced, and honest professional as yourself.

Carol Andrews

April 10, 2012

Thank you Kevin for this informative article. Good to have the statistics to speak for themself.
Aloha,
Carol

Carol Andrews

April 10, 2012

Thank you Kevin for this informative article. Good to have the statistics to speak for themself.
Aloha,
Carol

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