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Scarce Kohala Coast Resort Short Sale or Foreclosure Properties

If you are still hoping to buy a short sale or foreclosure property at one of the Big Island’s Kohala Coast Resorts, you will find options have become scarce and prices have risen. In recent years, we sometimes had five or six distress sales listed at a single complex; currently there is only seven active short sale or REO listings in total at Waikoloa Beach Resort, Mauna Lani Resort, and Mauna Kea Resort.

49 Black Sand Beach at Mauna Lani has an exclusive private amenity area on the ocean front

Short Sale Listing on Home at Mauna Lani’s 49 Black Sand Beach

In my blog post about oceanfront foreclosures in North Kohala, I made the observation that sometimes a property goes to foreclosure…or lingers as a short sale…because it has an issue that most buyers don’t want to address.

That would be true of the residence listed as a short sale at Mauna Lani’s exclusive 49 Black Sand Beach community (MLS# 258003). The asking price on the home is under $2 million – and the lender had already approved a sale in this range before the buyer got cold feet.

Let’s put the $1,949,000 price for a home at 49 Black Sand Beach in context:

  • The non-ocean view lots in 49 BSB are listed for $750,000. Subtracting out the cost of the land, this 4,892 sq. ft. home is selling for $245/sq. ft….and you can barely build a package home for that cost in Hawaii.
  • The next cheapest residential option at the community is listed for $2,995,000 – a million dollars more for a 3,002 sq. ft. home.
  • Other single family homes in this price range in Mauna Lani resort would be in golf course communities, rather than the oceanfront 49 Black Sand Beach.

The home itself has challenges. First, despite being on a 1-acre lot, it lacks a swimming pool. It’s a two-story home and the style is not the flowing, indoor/outdoor architecture so popular in resorts today. In my view, that’s the trade off for the “deal.” If you need help to see past the flaws, I’d be happy meet you there with a contractor or interior designer.

The main point is, buying this home buys you a lifestyle. 49 Black Sand Beach amenities include direct access to the beach cove from the the private 49 Black Sand Beach Club with pool, spa, kitchen, wine room, steam and dry sauna plus plunge pool, fitness room, concierge, BBQ, kayak and canoe storage – and its own tennis court so you don’t have to go to the Mauna Lani common tennis or beach facilities if you’d prefer to stay behind the gates.

Mauna Lani Condo Short Sale Opportunities

“Deal or no deal?” is the question I keep asking about current distress sales. The two Mauna Lani condo short sale opportunities are perfectly good properties that are not attracting multiple offers because the pricing still does not say “deal” to buyers.

This Islands at Mauna Lani home is listed as a short sale for $635,000 (MLS# 257092)

Let’s start with Islands at Mauna Lani short sale on Unit N3, which is listed for $635,000. There is a non-distressed option, Islands G3, listed for $10,000 less, furnished, no short sale uncertainty. The one sold comp from 2012 was at $620,000. At least this one could entertain an offer within shouting distance. Now let’s look at the only other short sale at Mauna Lani…

The amenity area at Kulalani: are new developer condos a better deal than Fairways short sale?

Fairways at Mauna Lani 204 is listed for $645,000 as a short sale (MLS# 256531). Fairways 1303, same floor plan, sold as a short sale last July for $440,000.  Or you could walk across the street to Kulalani – the newer development by Stanford Carr – and buy the same floorplan, pre-construction, for $520,000 and pick your finishes. Hmmmmmm…

One Foreclosure (REO) Property for Sale at Mauna Kea

Wai’ula’ula at Mauna Kea is a perfect example of what we’ve seen with distress and non-distress sales at luxury properties on the Kohala Coast. There is a clearly bifurcated market, with beautifully furnished, non-distressed units selling at a significant premium to “as is” short sale and foreclosure listings.

Furnishings and upgrades distinguish Wai’ula’ula homes that sell at a premium price (MLS# 259969)

Currently at Wai’ula’ula, there are two new listings at Ridge condos (four-plex buildings, 3 bed/3 bath units of around 2,100 sq. ft. of interior space and big ocean view lanai). Wai’ula’ula L201 is a bank-owned (REO) property back on the market at $779,900 (MLS# 259971). Wai’ula’ula N102 is turnkey furnished, newly listed at $999,000 (MLS# 259969).

Crazy? Not if you look at the comps. L201 is the other upper floor unit in Building L – and L202 sold in 2012 for $760,000. N102 is the ground floor unit in Building N…the equivalent, M102, sold last year for $930,000.

Waikoloa Beach Resort Short Sales

The most recent bank-owned properties listed for sale at Waikoloa Beach Resort have all gone into escrow quickly after fielding multiple offers…regardless of price point. Currently, there are only two distressed properties that are active listings.

A ground floor 2 bedroom unit at the older condominium, The Shores, is a short sale with a bank-approved price of $315,000 (MLS#  257163) Sounds attractive until you see that there is a non-distressed listing at the same price, and a short sale closed 6 months ago for $255,500.

A 2-bedroom corner unit at Waikoloa Colony Villas is listed for $325,000 (MLS# 254815) – with no room in the price if a short sale is to be avoided. How much do buyers care about avoiding a short sale? Again it comes down to will they pay a premium for the certainty factor, furnishings and rental bookings. In this case, all the 2012 sales of this floorplan were in the range of $280,000 or lower.

However, given that there are only three active listings at Colony Villas, one of each floorplan, perhaps this one will find a buyer at the price.

A hui hou

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

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Lars Skari

January 8, 2013

Really intriguing blog, Beth. Very interesting to see the evolution of the short-sale/REO inventory in the resort areas!

Lars Skari

January 8, 2013

Really intriguing blog, Beth. Very interesting to see the evolution of the short-sale/REO inventory in the resort areas!

Beth Thoma Robinson, R(B)

January 9, 2013

Lars, thanks for reading and commenting. A few years back, short sales were about 30% of my business and now they are almost negligible…although I did help three buyers with REO properties in 2012.

Beth Thoma Robinson, R(B)

January 9, 2013

Lars, thanks for reading and commenting. A few years back, short sales were about 30% of my business and now they are almost negligible…although I did help three buyers with REO properties in 2012.

Julie Keller, RS

January 9, 2013

Intriguing indeed, Beth! This post is packed with lots of valuable information. Mahalo!

Julie Keller, RS

January 9, 2013

Intriguing indeed, Beth! This post is packed with lots of valuable information. Mahalo!

Nikita

March 12, 2013

Meli, you are SOOOOO FUNNY!!!! That is an AWESOME PHOTO…… another itertesning view of the ISLANDS….. I probably wouldn’t even want to WALK across them,,,,,,,,,,, let alone ride a BIKE — AT FULL SPEED NO LESS!!!!!!! Hmmmmmmm– hugs, nan

Nikita

March 12, 2013

Meli, you are SOOOOO FUNNY!!!! That is an AWESOME PHOTO…… another itertesning view of the ISLANDS….. I probably wouldn’t even want to WALK across them,,,,,,,,,,, let alone ride a BIKE — AT FULL SPEED NO LESS!!!!!!! Hmmmmmmm– hugs, nan

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