Since the Christmas holidays, the Kohala Coast condo market is definitely picking up. Buyers are looking for great opportunities and Waikoloa Colony Villas is one of the places to look. A savvy buyer recently bought a 2 bedroom town home, listed as a REO (Real Estate Owned) for $237,900, while another purchased it at $649,000 in 2005.
There is not one week that I’m not showing properties in this gated community. Last week, I was dealing with clients from Ohio who decided, after 14 visits to the island, to purchase their own piece of paradise in this particular complex. They came prepared with a list of condos they wanted to see.
We also went over the recent sales: 10 units sold in the last 6 months from $237,900 to $355,000 (5 REOs, 3 short sales, and 2 regular sales), the current escrows: 10 units were in escrow (4 REOs, 5 short sales, 1 standard sale), and the units for sale: 10 units were available. Out of the ten units, we looked at eight.
Before going to our showing appointments, I explained to my clients that the distressed properties have become a common practice due to the current economic slowdown affecting the market. A practice has apparently developed in distressed sales (short sales and REOs) for the seller/lender to entertain multiple offers.
My clients fell in love with a large 2 bedroom unit listed as a short sale and they were ready to submit an offer. Before writing it up, I called the listing agent to check on the status of the listing that was on the market for the last 50 days. The agent disclosed the existence of a “low ball” offer he received the night before and he encouraged us to submit ours as quickly as possible.
We did—as well as 4 other buyers! Now the beautiful unit my clients were dreaming about became the dream of 6 buyers. At this point, the 6 potential buyers were asked to bring their highest and best offer—the dream of getting this unit slowly looked more like a nightmare to my clients who decided to keep dreaming just a few hundreds yards away and not get into a betting war!
This is Hawaii after all, not Vegas, and not worth the gamble.