I first posted in June on foreclosures at Kolea at the Waikoloa Beach Resort on the Kohala Coast. At that point there were three bank-owned properties on the market. If you are counting the months, you will realize that the condo I mentioned in that post, Kolea 16G, is about to hit 90 days on market. That is a critical number, and here's why.
When the first foreclosures appeared at Kolea, the selling banks did not know how to price them. Just before the Hawaii resort real estate market collapsed in August 2008, a similar 2-bedroom at Kolea sold for over $1 million. So the initial asking prices on these beautiful condominiums in a gated community with beach access seemed reasonable at $636,900. But there were no takers, and just like clockwork the prices crept down every 30 days.
When I was asked to list a short sale at Kolea in July , I looked at REO sales at other communities and priced it at $469,000. Just after that, the price on one of the 2-bedroom Kolea REOs was dropped to $460,000 on a Thursday night and it had multiple offers before the following Monday. Immediately thereafter, a larger 2BR/2BA priced at $521,900 (after several reductions) also went into escrow. My short sale received multiple offers and we are working with the lender on a sale.
Prospective buyers were finding my earlier blog posts too late to make offers!
Yesterday at 4pm (the Friday of Labor Day weekend!) another of the larger 2BR/2BA 3rd floor units came on the market. This time the bank has it priced at $563,900. Let me give you a hint: multiply the price/sq ft of my 1270 sq ft short sale listing by the larger square footage of this floorplan (1554 sq ft)! I just previewed the new REO and it is lovely, with a small ocean view. I think the market has found its price-clearing level, and bank-owned properties will not last at these levels.
Which brings me back to Kolea 16G. What do you think are the chances that by the end of this coming week it will have a price reduction? Do you have your prequal letter or evidence of cash funds ready to make an offer when it does?
For more info on this or other Kolea properties, please feel free to contact me directly: 808.443.4588 or beth@hawaiilife.com .
I worked for the developer of Kolea and there are few questions I haven't heard!
A hui hou,
Beth Thoma Robinson R(S)
UPDATE SEPT 7, 2009: They did it. 16G just reduced to $467,900. Call me if you are ready to make an offer!
UPDATE SEPT 9,2009: A front row 3BR just reduced from $2,395,000 to $1,495,00 (short sale). WOW!
UPDATE MAR 21,2010: Please see comment below from the savvy buyer who got 16G for an incredible $350,000.
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