Waikoloa Colony Villas – The Big Island's Hot Spot for Multiple Offers
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.