Regular readers know that I don’t like to blog an “advertisement in disguise,” meaning I rarely write a post about my own listings. However, showing resort property these past few days I realized that the lowest priced condos at four popular Kohala Coast resorts are listed by myself and my partner, Pam Deery. Given the feeding frenzy at the resorts, that’s newsworthy.
Normally this time of year (late April through Memorial Day) is considered a slow season in Hawai’i visitor traffic and therefore in Hawai’i resort real estate sales. This year, we are swamped. We have buyers who sold an investment property at home who are looking for a replacement property in Hawaii. We have buyers who realized we’ve passed the inflection point and are beginning the steep upward phase of Hawaii’s real estate market cycle. They don’t want to be left behind. Even Tuesday’s West Hawaii Today declared our Big Island real estate market “Hot, Hot, Hot!”
View from hot tub at beachfront Kolea, looking across ponds at the beach
Lowest Priced Condo for Sale at Beachfront Kolea
Context: The beachfront community Kolea at Waikoloa Beach Resort has a mix of custom single family homes on the oceanfront side, six-plex buildings with three-bedroom villas along the ocean view front row, with a back row of twelve-plex buildings having smaller two- and three-bedroom condos of varying views.
Why this context is important: Recall the real estate axiom “Buy the smallest home in the best neighborhood?” Technically, this is what appraisers term “the principle of progression.” It means that the higher valued properties will enhance the appreciation potential of the smaller properties.
This makes the lowest priced two-bedroom a best buy, especially as the market begins its upward journey. Currently the lowest priced condo at Kolea is second-floor Kolea 9E…turnkey furnished with all the original developer upgrades for $799,000.
Value of Kolea 9E (MLS# 256454) enhanced by upgrades including travertine in great room and electronic shades along the pocket doors.
Lowest Priced Condo for Sale at Oceanfront Hali’i Kai
Context: Appraisers use a mix of comparable properties, both sold and active listings, to determine value. They are required to put more weight on actual sold comps as listings may or may not be accurately priced. Lenders calculate their required loan-to-value on the lower of sales price or appraised value.
Why this is important: If the market takes big leaps rather than small steps upward as it is doing in some areas right now, buyers who are financing their purchase can run into appraisal issues. Not only is Halii Kai 8F (MLS# 249216), with its stunning ocean views looking straight down the golf course, the lowest priced active listing at Halii Kai today at $1,015,000…the mirror image 8G was sold in 2012 so there is a hard “comp.” Peggy Chestnut furnishings, pristine condition as it has never been a rental…not to mention at Mauna Lani Point condo with similar views would sell for twice as much!
Wake up to this view at Halii Kai 8F – three bedroom penthouse with master bedroom lanai
Lowest Priced Resale at Kulalani at Mauna Lani
Context: The developer of Kulalani at Mauna Lani has almost sold out the first building to be released pre-construction in their second phase. As of this week they have authorization to begin building, with a target for closings in Building 18 in January 2014.
The remaining unit they have for sale is 1803, a two-bedroom priced at $520,000. We’ve been told the developer sold the other five condos in this building at list price and will be raising prices from here in light of the improving market. No other buildings will be offered until the pertinent public reports are approved, which means months from now.
Why this is important: A Kulalani buyer who wants to lock in prices and enjoy their unit NOW must look to the resale market.
There are two resale units available at Kulalani:
- Two-bedroom end unit 2406 (MLS# 262860) offered for $545,000 furnished
- Three-bedroom 302 (MLS# 259857) offered for $865,000 with furnishings separate
Besides the future developer unit and the 2-bedroom resale at Kulalani there are only three condos listed below $550,000 at the Mauna Lani Resort! Kulalani 2406 looks, to me, like the best buy in the resort.
Turnkey furnished, owner-occupied Kulalani 2406 priced to sell at $545,000!
(Second to) Lowest Priced Listing at Ka Milo at Mauna Lani
Context: Like Kulalani with which it shares an amenity center, Ka Milo at Mauna Lani stopped construction during the downturn, resuming developer sales last year. They are selling pre-construction almost as fast as they can list both paired and single family homes. The astute buyer will notice that there are revisions to floor plans and to some elements of the construction in the new phase of construction at Ka Milo.
Why this is important: Resale units from the first phase have built in value because of slightly more costly construction details…and the four bedroom floorplan with two master suites is no longer an option except on the resale market.
There are two resales currently listed at Ka Milo for under the price of the least expensive active developer option. One of them is a three-bedroom 1,653 sq. ft. unit listed for $735,000 (MLS# 259794). This unit was purchased by the sellers for $565,000 in 2010.
The other (our listing) is a four-bedroom 2,103 sq. ft. home listed for $850,000 (MLS# 246447). Think of the four-bedroom floorplan as having a second master suite built above the master suite in the three-bedroom floorplan. Perfect for two couples buying together, or a buyer who often travels with extended family. This seller paid $1.287 million in 2007. Even with furnishings negotiable, looks like someone’s loss could be your gain.
Ka Milo four bedroom floorplan with two master suites is only available at resale
For more information about any of these listings, or other best buy picks at the Kohala Coast resorts, feel free to call or email.
A hui hou,
Beth Thoma Robinson R(B)
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