Knowing how to maneuver the complexities of short sales as well as how to identify the distinct real estate opportunities in foreclosure are not merely good skills to have in today’s market—they are critical.

We’ve moved a long way from the boom days of 2003 through 2006. And to better understand the challenges of today’s market, it’s important for Realtors to move with the market. Change in any industry is inevitable. The ability to morph with the advancements is a powerful asset for any business endeavor.

CDPE – a key desination to really understand short sales

I’ve been working with short sales on Kauai for almost three years, and the market continues to expand. Last year I received my CPDE designation as a Certified Distressed Property Expert. The Distressed Property Institute has trained over 16,000 Realtors in its two years, making the CDPE the fastest growing designation in real estate history.

The National Association of Realtors (NAR) recently rolled out their version of designation called the SFR, which stands for Short Sales and Foreclosure Resource. The SFR course  helps students evaluate all available options for distressed homeowners and identify the components of an effective short-sale package.

Well, now I’ve completed that training as well. Much of the information was similar to the CDPE course, but I did learn quite a few things. One of the viewpoints I enjoyed the most was the trainer’s description of the real estate market. I’ll share that with you because if you are a buyer or seller reading this, it’s a good contextual framework to have.

Mr./Mrs. Buyer – There are basically two types of properties in our market today. Well…., no actually three. They are:

• Opportunity Properties – These are properties listed by highly motivated sellers that are in very good condition. The properties  don’t need much if any work and they are priced to sell. The seller understands the competition in the market place in their price range and prices accordingly. It’s clearly an opportunity and it gets snatched up quickly. These properties sell within 30 days and frequently with multiple offers.
• Deals – These are what most buyers want. Yes, the price is fantastic. BUT, they may be a short sale subject to delays of a bank, the follow through of the listing agent, and there may be many landmines. Perhaps there are tax liens, unpaid homeowner’s fees, a roof that needs replacing, etc, etc. These are the Kauai REO properties or Kauai short sales. Yes, it’s a deal, but, your patience can often be tried in purchasing one.
• What’s the third type of property you ask? Glad you did! It’s Everything Else, most of which is not selling.

When you enter the marketplace, it’s good to know which of these property types is for you. And as far as the SFR goes, I am very grateful that 70 Realtors, many from off-island, took the SFR course this week. The more Realtors understand short sales and foreclosures, the better it is for the owners, buyers, community, banks, everyone.

View Kauai Deals in my Kauai Foreclosure Gallery →

Download Kohala Ranch Active Listings & Comps (PDF) →

Note: There are additional properties not on the market with owners willing to sell. For our opinion about the asking prices and/or value of these properties, or any other Big Island real estate information, please do not hesitate to contact us.

Being of Hawaiian ancestry, I thought I’d add my 2 cents to the discussion. What are people afraid of? Are they afraid that the land will be taken away from them? Funny how the roles reverse, isn’t it? I believe it is time that Hawaiians have their say. Hawaiians are entitled to govern themselves. We are also a proud people that have had their lands seized by a people that operated on a level of deceit. Anyone who has deluded themselves into thinking it didn’t happen lives in a different world from Hawaiians and many other native races that have had this happen to them.

I am encouraged by this Bill. Sen. Akaka, my father, my family and many other Hawaiians—Drs, Lawyers, Politicians etc.—have worked and struggled for this. Those that are in fear of this are those that still want to rule. The universe is changing. There is more love and light on this planet than ever before and more coming. If we turn away from fear and accept and celebrate our differences while remaining united as a human race we will all have a wonderful place to live. And isn’t that what we all want. Not to be dominated by any other—but to live in harmony?

My suggestion would be to remind people that we are still a part of the United States. The ceded lands they are talking about were passed down from our Ali’i—our monarchy, our ancestors. Like any non-native who feels that they should have the right to leave a legacy of land to their families, we feel the same. This bill is addressing ceded lands—lands our Ali’i left for us, the Hawaiians. The United States and the State of Hawaii do owe us restitution for the use of our ceded lands that they have been using for years without payment. Like Honolulu Airport where the back lease rent is in the millions, but the State of Hawaii is saying that the just can’t pay. This is what we are targeting. Fair is fair.

Most Hawaiians are not for taking away lands—we didn’t like it and most of us wouldn’t do that to someone else. Tell your clients to come here with a heart of Aloha, not wanting to change anyone, not wanting to make this another California and life will work out just fine for them. We will feel their Aloha and Aloha will be reciprocated.

As quoted today by the HGEA,

“A temporary, modest increase in the General Excise Tax is vital to preserving the quality of life for all Hawaii residents. With 38 percent of the tax being paid by tourists, a GET is the best alternative for both short-term stimulus and long-term financial stability for our state.

Recently, leading local economists have also said that such an increase will help to boost our state economy.

Without passage of a GET increase this session, Governor Lingle will be allowed to address any additional deficit through further cuts to important public services and programs.

The legislators need to hear from YOU—their constituents! We will be organizing a Lobby Day where HGEA members and concerned citizens can visit with their lawmakers to encourage them to do right for Hawaii by supporting a temporary, modest GET increase. “

What tax payer in their right mind would ever believe in a “temporary tax increase”. This is one of the biggest frauds ever promoted to try to throw the balance off the real issue; government spending.

What part of Hawaii’s economy has suffered most over the past two years? What a great idea, increase the GET 20% so hotel operators have to try to cover the cost with room rates dropping like an avalanche. Just have the few remaining tourists pay more, no problem. How about jacking up the GET 20% on the cost of  a new house? Our flourishing contracting businesses certainly can absorb a few more losses, after all, they don’t have much of a payroll any longer because all of the workers are collecting unemployment, if is hasn’t run out already.

How about doing what businesses have had to do: Cut back, consolidate, reduce inventory, close non-producing assets, layoff all but your best core workers. The DOE is just part of the problem. They have shut down every attempt at change. Why can charter schools in Hawaii offer 200 days of instruction right now in Hawaii? They offer a different model. Why does every county have their own department of transportation to repair and maintain roads? Can’t the state turn over all of these operations to the county. The list goes on forever.

We in the real estate industry have suffered as much or more. Our income is about 50% on average of what it was in 2007. Are we all surviving? Certainly not, only the best, most innovative companies are doing well. Who is getting out the crying towel for us? Not a soul, and we don’t expect anybody to because we work every day on new ways to serve our clients better. Give them better service, deliver the information to them quicker, give them what they want and they will do business with us. If we just sit around and expect customers to walk in the door and buy something just because we have an office in a good location and work for xyz Realty, we will die.

Government will never understand how business works and how can we expect government to run like a business. We elect politicians because we like how they look, the pretty words they tell us, or because the union told us to vote for them. We get what we set ourselves up for: politicians who will do what it takes to get re-elected.

This is a great year to “Just say NO!” Don’t you love the crystal meth ads on TV right now. Just this once! Just this one time, temporary 20% tax hike and life will be just great. Let’s tell our legislators, loud and clear, No Tax Increases! You increase taxes and we will un-elect you!

Beset beneath the mighty Haleakala and overlooking the internationally famous surfing and windsurfing at Ho’okipa Beach Park, Hale Ho’okipa is one of the most luxurious and largest homes (MLS# 341235) on Maui’s North Shore.

View Featured Website →

“The House Of Hospitality”

The Stice Team has just listed what we believe is the finest built home on the entire North Shore of Maui. This custom home is the embodiment of world class materials, scrupulous attention to every detail of master craftsmanship, and creative contemporary brilliance.

Chef’s Kitchen

Ocean Views

Haleakala and Hale Hookipa

This could be your new local surf spot.

South Maui’s luxury community of Wailea, which currently has the distinction of the highest priced condo listing on the island (MLS# 339893), has proven resilient in challenging times, but it’s not immune to the occasional distress sale. You won’t find any REO (bank owned) or short sale movement at Wailea Point (although the highest priced condo listing was recently reduced $700K), but there are a few buying opportunities at these blue chip condominium properties.

There is currently one REO, a 2 bed/2 bath at the Wailea Ekolu listed at $525K (MLS# 339878). The Ekolu is located just up the hill from the spectacular Wailea beaches, and wraps the Wailea Blue golf course. This unit  is in good original condition, and is a great candidate for a full-blown renovation. The three most recent 2 bedroom sales at the property: $695K (Jan. ‘10), $715K (Dec. ‘09), $738K (July ‘09).

There are 11 2-bedrooms currently listed in the complex between $695K to 1.1M. Location is everything at this property—contact me and I’ll send you a site map.

There is also a potential short sale at the same property, a 1-bedroom unit listed  at $629K (MLS #337451), that’s been on the market for 316 days.

One high-profile potential short sale, a 3 bed/2.5 bath unit at gated Papali.

The gem of the short sale candidates is unquestionably Unit 6 at Papali Wailea, the gated luxury residential development built at the end of 2008. Listed at $2,395,000, this 2,386 sf, 3 bed/3.5 bath (MLS# 338095) has never been occupied, and offers expansive views from nearly every room. It was originally sold at $3.24M, in April ‘08.

There are eight additional units listed at Papali, from $2.6M to $3.3M.

Kanani Wailea potential short sale.

Another of Wailea’s newly-built condominium properties tailored to single family residential lifestyle, Kanani Wailea also has one potential short sale listing. Once untouchable at under a million, this development features detached two-story residences with garages, and premium level surfaces and amenities. Unit 4 (MLS# 324957), a 4 bed/2.5 bath with 2,369 sf, is now listed at $799K,  just over half its original list price of $1.5M. Three additional listings range from $850K to 969K. The last sale was a 4 bed/4.5 bath at $850K, in September 2009.

Wailea Fairway Villas, a nicely secluded property in upper Wailea that overlooks Wailea’s Gold course and features ocean views, has a 2 bed/2 bath short sale listed at $555K (MLS# 337570). Fifteen units are listed here, from $390K to $1.175M.

There are 21 active listings at the Wailea Ekahi, located ocean front on one of Maui’s best beaches (Keawakapu Beach), with one short sale (MLS# 341252) at $499K. Additional 1-bedroom listings there range from $550K to $1.3M. One-bedroom sales over the past year range from $575K to $1.03M.

Wailea’s entry-level Grand Champions, which boasts the Wailea Tennis Club as a neighbor, has one short sale in its five 1-bedroom listings (MLS# 341309), a 1 bed/2 bath at $499,000. Additional listings range from $530K to 650K, with recent distress sales recorded at $380K to 475K.

Kevin Spaise is one of Hawaii Life’s property specialists, and the Author/Publisher of The Maui Condo Book (www.TheMauiCondoBook.com). The Maui Condo Book is the reference directory used by most Maui real estate brokers, agents, and title/escrow professionals. Talk Maui real estate with Kevin via phone (808.344-0624) or email (Kevin@HawaiiLife.com).

An old Hawaii real estate legacy, Maui Land & Pineapple C0., makes room for new technology focused brokerage, Hawaii Life.

What an amazing space! The property consists of 4 “pods” with intersecting walkways. There is a conference room located in one of the pods with the largest conference table I’ve ever seen. Floor to ceiling windows and lots of natural light.

This building was a special location to me growing up. I lived about 4 blocks away. I remember that most of my friends in high school worked at the pineapple cannery during the summer.

Recently, I noticed that there was a building that looked very similar in design located in Wailea, where I walk with my dogs. So I picked up one of my favorite books, Under a Maui Roof, and began to do some research.

It turns out that the building was designed by a firm called Wimberly Allison Tong & Goo (WATG) and was built in 1971. The firm has celebrated its 60th year of design and has several offices around the world.

Matteo’s Pizzeria & Italian Restaurant

As I dug further, I discovered the other building that I suspected was theirs, currently Matteo’s Restaurant, had been designed by the firm as was The Chart House, Wailea.

Here is where it gets exciting. Check out some of their other designs:

First Hawaiian Bank, Kahului

The FHB Kahului Branch was built in 1982 and was designed as a residential scale building to reflect the charm of the island. It is a contemporary interpretation of Hawaii’s historic architectural form. The low eaves of traditional Hawaii roof design cast magnificent shadows on the exterior walls.

Sheraton Maui Kaanapali

The Sheraton Maui Kaanapali was built in 1963. It was the first hotel in Kaanapali and was the first “upside down” hotel.  All the public areas are located on top of black rock and the guest rooms descent down the face of the rocks to the ocean below.

Four Seasons Resort Wailea

The Four Seasons Resort Wailea was built in 1990. Palatial in concept with massive columns and formal gardens. The hotel was developed using symmetry and formal pattern. The U-shaped building placed guest rooms at 45 degree angles to the corridors offering awesome ocean views and natural light.

The Ritz Carlton Kapalua

The Ritz Carlton Kapalua was built in 1992. The original design was scrapped when an ancient burial ground was discovered (now marked & preserved).  The redesigned plan was not as prominent as initially planned. The revised plan reduced the scale of the project and allowed the design to step down following the slope of the land. It is built in the heart of pineapple fields and retains its understated elegance.

The Kona Hilton

For my friends on the Big Island, the firm also built the Kona Hilton in 1968. Another awesome example of WATG architecture.

So, while I work away at our amazing office, I’m honored to have this be not only part of my history but part of the Hawaii Life history.

View all Kauai Foreclosures →

Here are the latest list of Kauai Short Sales and Kauai foreclosures for the last two weeks.

Sub $100K Kauai condo without kitchen.

1) Listed at $75,000, Unit 126 (MLS# 232544) at the Kauai Beach Resort is in building 1 with an ocean view. Many people are attracted to a Kauai condo at the sub $100,000 price. It’s crucial to know that this unit is a hotel room and does not have cooking facilities. It DOES however have consistent revenue as the Kauai Beach Resort is a wonderful place to stay and vacation.

This is one of the lesser priced homes on Kauai’s eastern shores.

2) This small home on Puka St. (MLS# 232705) on the northern end of Kapaa is not quite a short sale but for an offer under $220,000 it will most likely become one.

New REO in Kapaa.

3) The REO listing on Papau St. (MLS# 232990) like all Kauai REO properties comes AS-IS. That IS one minor benefit of the short sale, as a buyer can often get a Sellers disclosure that is not available when purchasing from a bank. A careful inspection is highly recommended when purchasing any distressed property.

Waipouli Beach Resort REO already under contract.

4) Offered at $675,000, Unit A404 at the Waipouli Beach Resort (MLS# 232766) is a new REO and is already under contract. This luxury resort affords great opportunities for buyer’s who prefer luxurious amenities and convenience. With Subzero Refrigerators and Wolf Ranges, these are some of the most luxurious units on the island. This unit is a First Hawaiian Bank REO and comes AS-IS.

5) 4530 Kuawa Rd #E (MLS# 232635) $595,000

6) 3874 Hunakai St (MLS# 232974) $434,900

Stay in touch with my blogs for updates on Kauai foreclosures and short sales. Email me for a list of all pre-foreclosure Kauai properties.

View all Kauai Foreclosures →

Hawaii County Pa’auilo land parcel to be auctioned.

The County claims it’s selling this land to make up for a budget deficit. Which begs the question, what are they going to sell next year to make up for next year’s shortfall in the budget? It’s not as if the real estate market or general economy is going to come screaming back by the end of this year to the highs of 2005 & 2006! Why isn’t the County planning to lease this land as farmland to local business owners who are crying for this sort of acreage at an “affordable” price? We already have examples of how viable a business proposition these small farms can be. As a County taxpayer, this makes more long-term fiscal sense to me than simply selling off an asset, that when it’s gone, is gone.

Rumor has it multi-national conglomerate Monsanto will be bidding on the parcels. Wonder if they’ll test the soil for contaminates from the now-defunct Hamakua sugar cane industry before planting genetically modified seeds (soybeans?) that most likely they will want to sell back to us as “organic” soymilk and/or biodeisel fuel??  It could bring a whole new meaning to the terms, “island” or “locally grown.”

There will be 4 sealed bid dates. The County has set up a website for more information about bidding on these parcels. Appraisals, Maps, Surveys and Preliminary Title Reports are all available online. The County is also advertising a property tour for this coming Wednesday, March 17th. Read the Pa‘auilo Land Tour (PDF) for more information.

Incredible quality and views from this Kailua-Kona home (MLS# 231352).

Previously on the market for $799k. Now a Bank owned REO!

Price: $449,900 (-$350,000 or -44%)

Awesome panoramic ocean views. This custom 3 bed, 2 bath home has a spacious open feeling with vaulted ceilings and a large living area that opens out to a huge lanai. Conveniently located in central Kailua-Kona.

Enjoy whale watching in season and gorgeous sunsets all year long. Check one of the best of Kailua-Kona’s surf breaks from your kitchen (only 5 minutes away) over a mug of Hot Kona Coffee.

The kitchen is open and inviting. Tile floors are perfect for easy care and casual Hawaiian life style. Oversized garage with a nice work area. The 16,594 sq. ft lot has gorgeous landscaping and there is still room for a pool. Extra parking area, great for a boat. The roof is a high quality standing ridge metal roof. The solar system is the highly efficient Solarhart system.

This neighborhood is close to Kailua-Kona towns shopping and beaches. Search no further for the best moderate priced Kailua-Kona Real Estate deal!