Halii Kai Short Sale and Foreclosure Update-January 2011

View from Halii Kai 12H, now listed as a short sale at $999,000.

In the past month since my most recent market update, two REO (foreclosure) listings and two new short sales have appeared at Halii Kai in the Waikoloa Beach Resort. That means there are currently 18 Halii Kai condos for sale excluding developer listings:

• 6 short sales
• 2 REO (bank-owned)
  
• 10 non-distress listings.

For reference, in 2010, what sold at Halii Kai was:

• 7 short sales
  
• 1 REO (the only one for sale)
  
• 1 non-distress oceanfront resale
• 13 developer sales.

Foreclosures are the lowest priced condos for sale

Last year the developer sold out its remaining smaller 2bed-2bath units that were going in the $400,000 price range. Luckily, the two foreclosures may be an even better deal for the savvy buyer at this price point. Both of them are on the golf course rather than in the Coconut Grove; and both are among the very few of this floorplan that have garages.

There has already been one price reduction on 2C, now at $394,000. New on the market today is 4B, offered at $ 414,800. Now here's an odd twist: Halii Kai 4B was my listing as a short sale, the only one we failed to close. We did not close because the Seller did not like the terms of the short sale approval; but the price we'd negotiated was slightly below this asking price, which just goes to show that waiting for the foreclosure does not necessarily guarantee you'll get a better deal!

Developer competition at the lower end

The demand is clearly there for short sales and foreclosure properties, and so the developer has just become very aggressive with its Coconut Grove garden/mountain view inventory to compete with them. Although it has not yet hit the MLS, I understand they closed yesterday on a 3BR/2BA groundfloor unit for a recorded price of $445,000. That moves the bar down considerably from their $495,000 asking price (they sold none of this floorplan in 2010, and their last sale of the 2BR/2BA in the Coconut Grove was at $479,000).

The lowest priced condo for sale in the Coconut Grove is still the short sale 18H, at $409,000. Even though the buyer will have to pay the seller's delinquent HOA dues, the all-in price should still land below developer options.

Two short sales with big views

Both of the 3bed/2 bath units in nearly oceanfront building 12 are now priced as short sale listings at just under $1 million. Although my team's practice in short sales is to list as close as possible to where we believe the bank's valuation will come in to make a long process as smooth as possible, not every short sale listing is priced in line with how I read the comps. I have an opinion on where these two ought to sell, and would be happy to share if you are a prospective buyer in this price range.

FINAL NOTE: Remember, to submit an offer on a short sale or REO you must have a prequal letter from a bank if you are financing, or proof of funds for an all-cash offer. At Halii Kai, lenders require a minimum of 30% down.

January 7 Update: Smaller 22/2 in the coconut grove just listed, also an REO, for $338,000. May be eligible for HomePath financing too! Owner occupants have first shot at it for the coming week.

A hui hou,

Beth