Halii Kai Real Estate Developer Lowers Prices to Compete with Big Island Short Sales and REOs
I got a call from the Principal Broker at Halii Kai at Waikoloa Beach Resort yesterday to alert me that they had decided to reduce pricing on their remaining units to compete with other Big Island short sales and REOs (foreclosures).
Just to paint a complete picture, aside from the oceanfront property sale that closed last week at $1,395,000—$500,000 higher than the previous (REO) sale of the same floor plan in that building—all sales in escrow this year are distress sales. There are 8 short sale or foreclosure Halii Kai condos for sale with offers and another three short sales currently listed without accepted offers.
The largest price reduction taken by the developer is on the little bit of ocean view inventory they have left in Building 6—8. They can afford to take significant reductions here because the prices on those sales affect fewer of their potential future sales. For example, there are three oceanfront units of their smallest floor plan (1,028 sq. ft. 2 bed/2 bath) that are short sales or foreclosures in the mid $600,000’s range. As distress sales, they are sold as is and without furniture at that price.
The developer still has 8C, which is designer furnished, stunning ocean views right down the fairway of the Waikoloa Beach golf course…and the price just fell 24% from $852,000 to $645,000 to match the REO price. But if you want a turnkey unit ready to put in the rental program, you can be up and running with no time lost for furnishing; will get a year fit-and-finish warranty from the developer rather than an “as is” sale; and a little bird told me we can still negotiate for some prepaid association dues on top of that!
Lanai of fully furnished Halii Kai 18H short sale condo
I still have 18H listed as a short sale in the Coconut Grove for $435,000 (MLS# 231165) and I was told the developer will offer incentives off their previous list price of $510,000 for the 3 bed/2 bath ground floor condo which is their most popular floor plan to compete with my pricing.
That’s good news for the prospective buyer of 18H because that will assist me in providing comps for the lienholder to approve the short sale, and the unit is beautifully turnkey furnished with rental pool towels still neatly hung on the bathroom towel racks. And good news for the next buyer I represent at Halii Kai on developer inventory, because I have figured out the formula they are using and can craft a deal that gets my buyers the lowest possible price.
There is a high volume of sales activity in Kohala Coast real estate at the moment, and this was a smart move for the developer to make just as the distressed inventory is getting scarce.
A hui hou,
Beth Thoma Robinson, R(S)