Best Hawaii Real Estate Deals Might be From a Developer

The Amenity Center at Kauna’oa, Mauna Kea, town homes start at $2,500,000

In our current market, where supply exceeds demand, a developer condo, home, or even land can sometimes be the best deal in town!

Here are a few reasons why:

1. Price: Let’s face it, the developer most likely started the project, or at least did the groundwork, before the real estate bubble burst! Now, many developers are exceedingly motivated to liquidate remaining inventory because of issues like debt servicing, needing capital for future groundwork, scaling back, or closing down a project, or meeting lender time lines.
2. Replacement: The developer may likely be selling at “below replacement cost.”
3. Warranties: The developer may even offer equipment, appliance, and even construction “fit and finish” warranties. You won’t get that, (and maybe not even a disclosure statement), when you buy an “as-is” distressed property.
4. Amenities: The developments often have community fitness, recreation centers, and plush resort pools!
5. Incentives: The developers often offer “buyer incentives.” They may throw in a furniture package, closing credits and/or Homeowners Association (HOA) fees. This is a way for the developer to keep the “actual sales price” in a respectable zone. In these cases, the buyer can save big time on out of pocket costs. I’ve seen a buyer get a fully furnished unit PLUS 2 years of HOA fees! With a decent down payment and/or low financing, that buyer had minimal expenses for two years. Sweeeeet!

Buying developer inventory can be an incredible way to get a great deal now on a new or never-lived-in property. I have some favorite projects that come to mind. Here are a few:

Kumulani at the Uplands, Mauna Kea, asking $550,000 (MLS# 235950)

KaMilo at the Mauna Lani Resort (MLS# 235991) asking $699,000

Sunset Ridge home in Waikoloa Village (MLS# 241751) asking $334,900

Oceanfront Amenity Center at Hali’i Kai at the Waikoloa Beach Resort (MLS# 238297) $475K