Will the New Kolea Foreclosure Affect the Kolea Auction?

From the lanai of Kolea 10F (MLS# 243619) you can watch a beach volleyball game!

The auction of penthouse condo Kolea 2C scheduled for March 21st has just taken an unexpected turn, as the bank which foreclosed on a similar unit directly across from the Kolea Beach Club listed it for sale today at an asking price of only $1,390,000. The new REO (foreclosure) is Villa 10F, the third floor condo directly above a smaller ground floor REO that stimulated a bidding war late last year. The asking price is less than half of the almost $3 million price tag the original owner paid the developer.

Interestingly, the fine print on this sale is that the bank will collect offers for the first 7 days; then days 8-12 will be reserved for owner-occupant bids; and finally, on day 13 the best offer will be accepted. That means a savvy buyer (or their savvy agent) could rank not only the penthouse to be auctioned (pristine, furnished, west-facing) against the foreclosure (had been rented, needs a face-lift and furniture, beach-facing), but also against other options both within and outside of Kolea.

In other words, if bidding goes higher than your target on 2C, you still submit an offer on 10F during the holding period. Or look at second or first floor, turn-key furnished units, since the next most motivated penthouse seller will be in the $2 million ballpark. The second floor front row listings start at $1,595,000 and the least expensive ground floor in the six-plex buildings is at $1,299,000.

What else would I recommend viewing at the Kohala Coast Resorts for comparison at a $1.4-$1.6 million purchase price point? Here are just a few ideas (not to give away all the best deals in print!):

• A direct oceanfront 3 bed/2 bath condo at Halii Kai (there are three for sale)
• The newest 2 bed/2.5 bath ocean view condo for sale at Mauna Lani Terrace (MLS# 243631)
• A Wai’ula’ula at Mauna Kea Villa with a private pool and big ocean view (MLS# 240082).

Just remember, you must register and wire your deposit by this Friday, March 18th, to participate in the auction of these luxury properties at Waikoloa Beach Resort!