Kohala Coast Resort Condo Foreclosures (REO) in Short Supply

I almost titled this blog “Where have all the foreclosures gone?”—which my quirky brain started singing to me this morning as I pulled up a very short list of Kohala Coast resort condos that are listed as “REOs” (Real Estate Owned by a bank after the foreclosure process).

I haven’t heard “screaming deal” tossed around for a while now, but I’ve got a bunch of prospective buyers for resort property lined up for October and each one of them says they are “open to short sales and foreclosures.” That’s why I ran an MLS search for condo foreclosures for sale at Mauna Kea Resort, Mauna Lani Resort, and Waikoloa Beach Resort.

Hold on to your seats. There are a total of FIVE: one condo at Wai’ula’ula at Mauna Kea, one Villages at Mauna Lani, one Palm Villas at Mauna Lani, and two at Waikoloa Beach Resort (Fairway Villas and Waikoloa Beach Villas). Short supply…and not all of these qualify as “deals.”

Wai’ula’ula L201 (MLS# 247979) is a bank-owned condo listed at $910,300 after a price reduction. Maybe better photos would help?

I am really scratching my head over the Wai’ula’ula REO listing price. They just took a reduction to $910,300, which leaves it the second most expensive of seven active listings. As a “foreclosure” it is of course sold unfurnished and in “As Is” condition—no upgrades and no built-in BBQ on the lanai. Meanwhile, Wai’ula’ula E201 is listed at $894,000 furnished.

Wai’ula’ula E201 (MLS# 225994) at $894,000 appears to be a better buy than the REO!

Some people don’t care for the location of E building, where the lanai side is not on the golf course. If that’s your issue, M201 is also furnished, not a distress sale, one building over from the foreclosure…and asking $895,000. (What can you expect to really pay? One of my Hawaii Life colleagues just represented the buyer on my previous top pick…for $860,000).

I was looking for a particular listing at Villages at Mauna Lani…the one I featured in my blog post on resort condo versus single family home costs…which did not come up in my search. Turns out the listing on Villages 612 expired after 85 days on market.

Since we’re comparing lanai shots, this Villages at Mauna Lani foreclosure (MLS# 246323) has a peek of ocean view for $769,900…but the MLS photos don’t show it

OOPS, even as I write this, it has been re-listed. I’m surprised this one has taken so long to sell. This is an unusual REO in that it is furnished and rented, so no concerns over what you might find once the utilities are back on. It shows well and has a bit of ocean view from the lanai.  

Not sure why it did not sell…the hole for the missing wine fridge in the kitchen and the green tile and granite are surely not enough to reason to overlook a Maile (the larger 2,752 sq. ft. 3-bedroom floor plan) for $769,900. The most recent good comp was a short sale closed this year for $795,000 just a couple of buildings down the 600 line.

Quickly on the other listings…which are all, interestingly enough, in projects by the same developer, Sunstone:

1. People love the location of Palm Villas, but the current dispute over whether the developer or homeowners will pay for some roof defects means lenders cannot finance a purchase there, so the references to “HomePath” in the listing for G21 (MLS# 247774) for $357,900 are irrelevant.  

Words of warning, so you won’t get a shock like the buyers I showed last week did: this is three tiny bedrooms wedged into 1,197 sq. ft.; second floor with no elevators…BUT for someone it will be a sweet deal because it has the tiniest glimpse of ocean view across the lava of the conservation zone.

2. Over at Waikoloa Beach Resort, Fairway Villas O2 is a 2 bed, ground floor unit listed for $245,000 after today’s price reduction (MLS# 247401).

3. I also really like G-24 for $249,000…it’s a short sale that just had a big price reduction, and already has home inspection and termite reports done (MLS# 247200)!

4. Last on our list is Waikoloa Beach Villas A3, another 2 bed, ground floor REO condo for sale at $315,000 (MLS# 247244). This one has the built-in BBQ on the lanai!

Alternatively, the listing my colleague, Catherine, just blogged about, Beach Villas 02 (MLS# 248135) listed at $369,900 is not a distress sale…has all the developer upgrades, and a few upgrades made by the sellers. Furniture negotiable.

A hui hou,

Beth Thoma Robinson, R(B)
Direct: 808.443.4588  
Email: beth@HawaiiLife.com

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2 Responses to “Kohala Coast Resort Condo Foreclosures (REO) in Short Supply”

  1. Annie Mendoza (RS)
    September 18, 2011 at 10:14 am #

    Beth…I agree! Mahalo for the recap. And reassurance that I’m not going cookoo. You definitely know the market!! So…where have they all gone? Do you think its directly related to the judicial foreclosure mandates? P.S. What about Wai’ula’ula M201? Seems that at right price, it could be as good a deal than E201 because of view & location; asking only $1000 more & not a SS or REO

  2. Catherine Klug
    September 18, 2011 at 7:12 pm #

    Beth: Great blog and good luck with your prospective buyers in October! Since the Kohala Coast resort condo foreclosures are in short supply, the REO market has become increasingly competitive and there are three words I have come to despise: Highest and Best.

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