Pre-foreclosures and other Maui real estate secrets.
Catching a flight to Maui from L.A. in 2005, I overheard a light-hearted conversation between two young couples take a darker turn. The “obviously successful” couple from L.A. was on their way to Maui to purchase their second home and assumed that every couple in Hawaii owned their own home, especially if they had children.
Excited to share, the L.A. couple bubbled over about their new purchase and how they were on their way to Maui to sign closing documents for two acres in Haiku with a home and cottage. They naively posed the question to our local Maui family with two young children, “So, where is your piece of heaven located on Maui?” The silence was painful to my ears. You might as well of asked the young local couple, “Where do you park your private jet!?”
Luckily, times have changed! With bank owned properties (formerly foreclosures) hitting the market big on Maui at the beginning of 2009, prices plummeted, in some cases 40% to 60% or more. Now, for the first time in many years, our local Maui families can afford to purchase homes. I am proud to say that 90% of my bank owned listings are purchased by local families. Obviously, those condo listings approved for short term vacation rentals are usually purchased by investors from off-island.
My bank owned listings are priced right and sell quickly, and I have a great relationship with my banks. On average, list date to contract is 16 days which does not give potential buyers any lag time. Buyers need to be educated and sadly, that usually comes from their personal experience of losing out on their first few low-ball offers before they understand that bank owned properties sell to the highest bidder. Many times the final accepted price is above the originally listed price. See below for two bank owned properties sold in the last year.
- House 1 (Above, left) Located in S. Maui, 1/2 acre with main house and cottage. Sold at list price. List to contract was only 16 days.
- House 2 (Above, right) Located in Haiku, 2 acres, 2 homes. Sold above list price. List to contract, 11 days.
It is only human nature to want a good deal. Some think a heated banter back and forth in a sophisticated negotiation is good for the soul, especially when purchasing a home, the largest purchase a family will make in their lifetime. But here’s the secret, the fat has been trimmed from all bank owned properties and they are literally on sale. If buyers are not educated, they don’t know that “list price” for a bank owned property is a good deal.
If you love the house you are offering on, chances are other buyers love the same house…so, offer above list price. This is not considered a gamble, but low-balling is a gamble. It is important for buyers to do their homework to see what comparative properties are selling for in the same vicinity. Bank owned properties are already on sale.
Our offices are working upwards of 30 pre-foreclosures (properties not listed in the MLS) at any given time. To protect homeowners or tenants currently still living in bank owned properties, and because of MLS rules, we are unable to give out addresses of our unlisted pre-foreclosures. However, as bank owned properties are able to be listed on the MLS, and if you answer a few questions below, we can contact you first when a property of your dreams is about to be listed.
Please call or send me this information:
- Assets you desire in a property. ( i.e. acreage with a house and cottage, condo, 3 bed/2 bath, swimming pool, vacation rental on the golf course, etc.)
- Pre-approval letter or proof of cash. I would be happy to send you names of loan officers so that you can be pre-approved and ready to make an offer.
- Preferred location (i.e. W. Maui, S. Maui, or an actual town such as Haiku, Kapalua, Kihei, Wailea, or a zip code).
- Phone number, name, and email address.
Kathleen Wilson, SSCP – Short Sale Certified Professional – Five Star Institute, RECP – REO Certified Professional – Five Star Institute and SFR – Short Sale Foreclosure Resource.