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Luxury Kohala Coast Properties To Be Auctioned in March

No minimum bid on this beachfront Kolea home (MLS# 237963) to be auctioned March 21

By chance last week, I blogged that the single family homes for sale at Kolea, a gated beachfront community on the Kohala Coast, look to me to be a best buy. That best buy just got even more interesting with yesterday’s announcement that the one I picked as my favorite of the Kolea homes for sale, the house on Lot 7, will be sold by Concierge Auctions on March 21, 2011.

Concierge Auctions is the firm that has done such a great job conducting live auctions at Kukio and Hualalai. (Remember the sale of Cher’s home?) Within 24 hours, I’ve had three marketing pieces announcing the sale…and one call about whether there really is no minimum bid (the auction company confirms that is the case). There are actually other luxury properties being auctioned off next month…but an auction is not an auction is not an auction.

Here is a quick buyer’s guide for readers interested in “buying a property at auction:”

Naupaka Lots 7 and 8, set for foreclosure auction, are shown between the green lot (MLS# 233826) and the residence above

Foreclosure Auctions

The type of auction most in the news is the foreclosure sale. In Hawai’i, mortgagees can use either judicial or non-judicial processes to foreclose, but in both cases, the commissioner or trustee assigned sells the property at public auction. Often, there is no bidder at the flagpole, and the property reverts to the bank, which then puts it on the market with a listing agent.

These properties are sold “as is” and “where is.” The buyer should show up with a cashier’s check for 10% of their bid price, and should also be prepared to pay for all closing costs associated with the transaction (even those that would typically be the responsibility of the seller such as conveyance taxes).

Adjacent to Kolea is a small oceanfront gated community of only 11 lots called Naupaka Place. I’ve blogged that my listing in Naupaka is one of the few beachfront lots I know where the price of the most recent home sold in the community was higher than the cost of buying the lot and building. By coincidence, there is also a March auction date set for Naupaka Place…lots 7 and 8 are set to be auctioned at the flagpole on March 7th.

While Hawaii Life agents can represent a prospective buyer at a Concierge live auction, or on a non-judicial/trustee sale, we do not represent buyers on judicial foreclosures. The fine print on the sale of Naupaka Lots 7 and 8, as with any judicial foreclosure, is that the sale is subject to court confirmation.

Auction House Sales

In addition to the Concierge Auction’s sale of the Kolea residence, the local real estate franchisee of auction house Sotheby’s International is conducting an auction on March 12th of Big Island properties, both luxury residences and large ranch acreages.

Unlike with a foreclosure sale, the sellers have chosen to work with an auction company to promote the property and get buyers excited about buying…which means that the winning bid is not necessarily going to be a low-ball offer. Think about it. If I have a collection of Old Master prints for sale, I take it to Christie’s or Sotheby’s rather than put it on eBay or Craigslist, because they know how to attract the right buyers to bid up the price!

The bottom line is, whether you are buying Hawai’i real estate at auction, or looking at properties listed in the MLS, it is important to know what the property should be worth in this market and in the long run. Know what you are willing to pay for it, whether that is a “low-ball” offer, or one that is fair today and smart in the long term.

I have my own view of the “right prices” for the Kolea and Naupaka properties up for auction, as well as some views on what that will do to other properties listed. As I said a week ago, there are best buys to be found at the beach in Waikoloa Beach Resort…and without the carrying costs associated with Hualalai and Kukio amenity programs!

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Beth Robinson R(B)

February 24, 2011

OH, and by the way, the MLS listing price on Kolea Lot 7 just was increased yesterday from $6,499,000 to $8,995,000. Trying to reset expectations upwards for the auction?

Beth Robinson R(B)

February 24, 2011

OH, and by the way, the MLS listing price on Kolea Lot 7 just was increased yesterday from $6,499,000 to $8,995,000. Trying to reset expectations upwards for the auction?

Pam Deery, R(B)

February 24, 2011

Beth; As always you are “in the know” on the resort sales activity.

The theory of increasing the price on a property to set expectations makes little sense; as if a buyer would pay more than they could have bought it for last week! Although, we did see the bidding drive the price upwards at the auction in Kukio, the buyer still did not pay the recently listed price.

Great job as always.

Pam Deery, R(B)

February 24, 2011

Beth; As always you are “in the know” on the resort sales activity.

The theory of increasing the price on a property to set expectations makes little sense; as if a buyer would pay more than they could have bought it for last week! Although, we did see the bidding drive the price upwards at the auction in Kukio, the buyer still did not pay the recently listed price.

Great job as always.

Katie Minkus, R(B)

February 24, 2011

Aloha Ladies… we’ve been around long enough to know, however, there are some buyers who might not ask about the MLS history of a listing, and some Buyer’s Agents (I hesitate to actually call them “representatives”) who won’t offer that information to their Buyers, given the incentive of being paid on a percentage. I would love to say that would “never” happen in this price range, but… Just another reason why smart Buyers will hire their own Buyer’s Representative!! (And I would recommend someone like Beth, who clearly knows and transparently states all the material facts and history about a property, especially one in Kolea, where she was the original developer’s sales rep.)

Katie Minkus, R(B)

February 24, 2011

Aloha Ladies… we’ve been around long enough to know, however, there are some buyers who might not ask about the MLS history of a listing, and some Buyer’s Agents (I hesitate to actually call them “representatives”) who won’t offer that information to their Buyers, given the incentive of being paid on a percentage. I would love to say that would “never” happen in this price range, but… Just another reason why smart Buyers will hire their own Buyer’s Representative!! (And I would recommend someone like Beth, who clearly knows and transparently states all the material facts and history about a property, especially one in Kolea, where she was the original developer’s sales rep.)

Beth Robinson R(B)

February 25, 2011

Wow, just got off the phone with the listing agent for Kolea 2C, which has been added to the Concierge Auction. It was a good thing he called to give me a heads up as I had not had time to read the morning paper where the ad was tucked into the Entertainment section.
@Katie, I do know all the history on 2C, and since I represented the buyer on 2F (the facing unit) a year ago in a for-sale-by-owner…well yes, buyers need to be informed as to values and other material facts.

Beth Robinson R(B)

February 25, 2011

Wow, just got off the phone with the listing agent for Kolea 2C, which has been added to the Concierge Auction. It was a good thing he called to give me a heads up as I had not had time to read the morning paper where the ad was tucked into the Entertainment section.
@Katie, I do know all the history on 2C, and since I represented the buyer on 2F (the facing unit) a year ago in a for-sale-by-owner…well yes, buyers need to be informed as to values and other material facts.

Annie Mendoza, (RS)

March 19, 2011

Mahalo, Beth! Great post! Do you remember what Cher’s house was listed for and what it sold for at auction?

Annie Mendoza, (RS)

March 19, 2011

Mahalo, Beth! Great post! Do you remember what Cher’s house was listed for and what it sold for at auction?

Beth Robinson R(B)

March 19, 2011

@ Annie- $8.7 million. BTW, the designer who did the interior is a friend and client of mine and he’s available for other projects, new and remodel, at Hualalai and elsewhere on the Big Island!

Beth Robinson R(B)

March 19, 2011

@ Annie- $8.7 million. BTW, the designer who did the interior is a friend and client of mine and he’s available for other projects, new and remodel, at Hualalai and elsewhere on the Big Island!

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