Remember the oceanfront mansion on 21.5 acres in Hawi that was for sale by the bank after foreclosure….but that had some major issues? This Big Island oceanfront home was listed pre-foreclosure at prices ranging from $10-$17 million for almost 10,000 sq. ft. interior space plus huge lanai, garage and oceanfront land.
Through multiple listings as a REO, and multiple warnings that the lender would not accept anything that didn’t start with a “2″…the asking price finally crept under $2 million. Two escrows later, this direct oceanfront property in Hawi closed for a jaw-dropping $1,195,000 cash. Yikes, there go the comps for nearby homes!
Or maybe not…
Vacant 20-acre lots for sale next to sold REO estate in Hawi are still attractive at $1,095,000
In the case of the Hawi foreclosure, the buyer is an investment group with deep pockets. Whether their plan is to accept the encroachment agreement and focus on fixing up the home…or in a worst-case scenario demolish it…in my view they paid land value minus the cost of demolition! Therefore, although I believe the adjacent lots will sell for under $1 million (maybe under $900,000 – let’s try an offer!), I don’t think this sale makes the vacant lots any less valuable.
(Note: technically those lots are not oceanfront as the 24.5 acres with the home on it wraps along the oceanfront. Call me if you want to know why this is actually better for the buyer!)
Other Oceanfront Homes for Sale, Big Island
I’ve written multiple blog posts about the oceanfront home at Puakea Bay Ranch (MLS# 232548), which literally could not be permitted today this close to the water. It’s been on the market for $13,750,000 for over three years – and has not lacked for showings to qualified buyers.
It has everything one would want in an estate: swimming pool, tennis court, separate guest house for a total of nine bedrooms, master bedroom suite larger than most single family homes, 2,000 bottle wine cellar – and even land enough to add equestrian facilities to take advantage of Puakea’s trail system. It’s only missing one thing: it needs a new and bigger kitchen!
Watching another of my favorite long-time oceanfront listings that sold this year – the oceanfront home at Mauna Lani’s 49 Black Sand Beach that crept down from $17.9 million to finally sell just under $10 million – tells me that at the $10 million mark there are oceanfront buyers. In fact, two oceanfront properties at 49 Black Sand Beach sold this year at just under $10 million…and along the entire Kohala Coast there were only three residential real estate sales over $10 million: two homes at Kukio and one at Hualalai Resort.
With all the media attention the remodeled Puakea Ranch guest accommodations are receiving, I still feel that the Hawi area – and Puakea in particular – is ripe for appreciation. Check it out and tell me whether you agree this is the Kohala Coast’s value location!
A hui hou,
Beth Thoma Robinson, R(B)