Kapalua Ridge Villa Up For Auction: $495,000

I've been working with Kapalua Realty since 2000, and this is quite an unusual development in the Kapalua Resort market, which has seen very few foreclosures, and even fewer auctions.

Ridge Villa 2512, a one bedroom, two bath single level villa, has been listed at $495,000 in the MLS as an opening bid. Currently, this is now the lowest priced listing at the Ridge, with the next lowest being 2122, listed at $740,000.

Per the listing agent's website: "If you are the winning bidder, you agree to submit a Hawaii Association of Realtors standard form Purchase Contract offering to purchase this property at the winning bid amount, and you may include all typical contingencies in your offer and propose your desired terms such as closing date, deposit amounts, and others. Just as in a normal real estate offer, the Seller may accept, negotiate, or reject the Purchase Contract. However, all Sellers have agreed to accept offers that are at a significant discount to their current listing price. As in any contract, your rights and responsibilities will be governed by the Purchase Contract, and you will not be obligated to purchase the property until all conditions and contingencies have been fulfilled. If you are the winning bidder, you may choose to have your own Hawaii-licensed real estate agent submit your Purchase Contract."

Per their website, bid increments are $5000. According to tax records, the property was most recently purchased in 2004 for $610,000. I spoke with the listing agent who indicated that this is not a distressed sale or bank owned. The highest bidder will be notified if their bid is accepted (the Seller has a reserve which will not be revealed). The bidder's agent will then prepare a purchase contract with standard contingencies (financing is permitted, as are inspections, document disclosures, etc). In researching the property history on MLS, it was originally placed on the market at $1,250,000, and reduced to $785,000 before the listing expired.

The Ridge Villas were built in 1980, and consist of just 161 one and two-bedroom condominium residences located in 28 buildings on 21.5 acres. Amenities inclulde two swimming pools with recreation areas, BBQ facilities, and a recreation room.

Please don't hesitate to contact me with any questions. The auction deadline has been extended to 5/15/2009.