I Want To Buy A Foreclosure But There Aren't Any

By
Real Estate Agent with Keller Williams Realty Maui Hawaii Lic. # RB-20941

First and foremost I wish to thank those potential buyers who call and ask for my assistance in buying a Hawaii foreclosure property (an REO).  Many call after reading articles that continue to be published on the large volume of foreclosures and the deals to be had.  Unfortunately a bank foreclosure and a foreclosure available for sale are 2 different things.  In my market areas, Kauai & Maui, distressed properties listed for sale (short sales & REOs) are a small market segment with REOs being especially scarce.  The following charts illustrate the issue these buyers face.

Kauai Real Estate Market

(Kauai has 3 active REO listings at the current time)

Kauai MLS Listings Chart

 

Maui Real Estate Market

(Maui has 18 active REO listings at the current time)

Chart of Maui MLS Listings

 

It's interesting to note that the composition of short sales & REOs are "upside down" from conventional sales.  While the number of pending sales is significantly less than active listings for conventional listings, the reverse is true for short sales and REOs.  That would suggest that distressed properties are indeed viewed as a bargain when they can be found.

I continue to welcome these calls but please be aware that selection of REO properties is extremely limited and one must be flexible and ready to pounce when a new one is released.  A better option is to include short sales in the search criteria provided the buyer has an HFT (high frustration tolerance).  In my experience, a short sale can be just as good a "bargain" as an REO and there are more of them to choose from.  Even better, focus on value rather than on whether the property is in distress (thanks for that observation Charlie).

Aloha!

Posted by

Richard T. Dolbeare, R(B) photo

 

Richard T. Dolbeare, R(B)

Keller Williams Realty(808) 651-4550

Aloha@RichardDolbeare.com 

www.MauiSandCastles.com and www.KauaiRocks.com 

 Hawaii multi-island specialist, Maui & Kauai
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Ambassador
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Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

I think the question they should be asking is , " I want to buy a home that is a good value". It is interesting to see the numbers for your market and contrast them to ours

Jul 21, 2013 05:03 AM #1
Rainmaker
492,227
Richard T. Dolbeare
Keller Williams Realty Maui - Kahului, HI
R(B), ABR, CRS...Hawaii Multi-Island Specialist

Exactly, thanks your your affirmation Charlie.

Jul 21, 2013 06:16 AM #2
Rainmaker
369,492
Julie A. Black
KAUAI DREAMS REALTY Kauai Real Property Specialist - Kapaa, HI
CLHMS, CRS, GRI, Realtor, Broker

A good graphic explanation to our current market REO vs Conventional. REO is now only a small part of the market. 

Jul 21, 2013 04:35 PM #3
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Richard I think the graphs delivered your message clearly.  REO is not an important factor in Kauai and Maui.

However you would be delighted to help with the purchase of a real sale or new home.

Have a great Sunday.

Aug 03, 2013 10:19 AM #4
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Richard stopped by to say hello.  Still no foreclosures?  :)

Have a great weekend.

Aug 22, 2013 12:06 PM #5
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Rainmaker
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Richard T. Dolbeare

R(B), ABR, CRS...Hawaii Multi-Island Specialist
Buy a home or condo in Hawaii
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