Waikoloa, HI

One of the only two remaining foreclosures in the pipeline at the luxury Kolea condos at Waikoloa Beach Resort came on market a few moments ago. The 2 bedroom groundfloor condo Kolea 15G is priced at $429,900 (MLS 251456).

Even a foreclosure at Kolea still has the pocket doors and summer kitchen on the lanai.

I don't think it is accidental that the listing agents for REO properties (bank-owned after foreclosure) release their hot listings on Friday afternoon. If history repeats itself, the lucky new owner will be either a cash buyer or one with the foresight to have a prequal letter in hand to submit an offer over the weekend.

If that's a bit too quick for you, or you prefer the 3rd floor, Kolea 16J (my listing) had a price reduction to $499,000 today. That is a short sale and also requires a buyer preapproved by a lender or with cash in hand.

Let me know if you are ready to buy the lowest priced Kolea condo on the market!

A hui hou

Beth

For the first time in several years, as 2012 begins there is not a single 3-bedroom Halii Kai condo for sale that is a distressed property (short sale or bank-owned "REO" post-foreclosure).

As reported in my October Halii Kai update, the developer is nearly sold out. They actually released their model home of the groundfloor 3bed/2bath Kipuka floorplan as they have nothing left in this floorplan. And there are no short sales without offers in this popular floorplan either! The two least expensive choices are both in Building 17...$500-549,000 asking prices for a furnished condo with rental bookings in place.

View from the lanai of Halii Kai 15H, direct oceanfront privacy for $1,239,000 (MLS 240035)

On the heels of our sale of Halii Kai 15E we listed the same 3 bedroom condo on the other side of the building. Maybe the most private condo at Halii Kai, 15H is on the oceanfront and next to the rock wall separating Halii Kai from the Ke Kailani community at Mauna Lani Resort.

Short sale opportunities: both 2-bedroom floorplans available

If a two-bedroom works for your family-or you are looking primarily for an investment or vacation rental opportunity, there are still four short sale listings at Halii Kai (Disclosure: these are all my listings). One of them is the larger upstairs corner two-bedroom. Halili Kai 11A has ocean view and solid rentals, asking price $695,000.

Halii Kai 12C has the ocean view directly across the signature hole of the golf course towards the cove where the whales frolic in season. As a short sale, the asking price is only $549,000!

The lowest priced Halii Kai condo for sale is 18B, the smaller groundfloor 2 bedroom in the Coconut Grove with a list price of only $350,000! As with all short sales, these are unfurnished prices but in some cases the furniture could be purchased under separate bill of sale.

A hui hou,

Beth

Vista Waikoloa Condominium Complex, has a surprising amount of Foreclosures and Short Sales. In fact, the Association Of Apartment Owners (AOAO) has foreclosed on 7 units alone, now operating 6 of them as rental units. (according to public records - AOAO owned units - A103, A204, B105, B106, D103, E203) F201 was also recently owned by the AOAO, but foreclosed upon by the bank.

In fact if you look at the public records, Hawaii MLS reports, that out of the last 9 sales - 4 were distressed properties, either a short sale, pre foreclosure, or foreclosure - thats nearly 50% of all sales - worse yet, if you add the 7 - AOAO foreclosures, on top of the "distressed property" sales - you have a 2 to 1 ratio - over non distressed sales.

On an up-note, with most of the sales averaging in the low to mid 300's you can still get a good deal out there.

Buyers - just make sure you do you "Do Diligence"

Check on Lawsuits - concerned with AOAO foreclosing on so many units,

Check on Deliquncies - DCCA Biennial Report (June 2011) shows over $324,000.00 in Delinquent maintenance fees - that's HUGE

Check on any upcoming special assessment's, that $324,000.00 has to be recovered somehow - maybe turning the complex into an actual "apartment complex" can resolve the delinquencies? (note - public records show no upcoming assesments - but the 324k is concerning)

Maintenance fees: $567.00 - $1.282.00

Owner Occupancy: 6% - another red flag.

In 2010, there were 12 condos sold at beachfront Kolea at Waikoloa Beach Resort--seven of them distressed properties (bank-owned REOs or short sales).

As of this morning, 13 Kolea villas have closed in 2011--nine of them distressed. There are also two short sales still in escrow, and two non-short sales in escrow, one of which will close before year end.

That is an incredibly consistent level of demand for the past two years. The question is whether it can be sustained in 2012, given that as of today we have only one distressed listing at Kolea and there is a significant gap between distressed and non-distressed pricing.

All Kolea villas have the upscale finishes; Kolea 16J is now lowest priced at $525,000 (MLS 233827)

There are only two active listings which are short sales and I've been told by both seller's and buyer's agent that one of them has an accepted offer ready to present to the bank. That leaves one Kolea condo for sale at a short sale price, and it happens to be my listing.

Kolea 16J is a 2-bedroom, 2-bath unit in the twelve-plex buildings. It has a strong rental track record and future bookings the lucky buyer could take over. The price was just reduced to $525,000...the same price for which Kolea 15J, one building over, just sold. Lienholder approval should be relatively straightforward on this short sale!

The condo is rented through the coming holiday week but available to view in early January. We had 4 offers within 48 hours when 15J hit the market, so don't hesitate if your dream is to own at Kolea!

Mele kalikimaka!

Beth

The sunny northwest coast of Hawaii’s Big Island is a very appealing destination not only for its beaches, lavish resorts and golf courses, but for a host of other fun activities, as well.

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Johnny McElree

Johnny@JohnnyMcElree.com

www.HawaiiLuxuryListings.com