Waikoloa Colony Villas – The Big Island's Hot Spot for Multiple Offers
Since the Christmas holidays, the Kohala Coast condo market is definitely picking up. Buyers are looking for great opportunities and Waikoloa Colony Villas is one of the places to look. A savvy buyer recently bought a 2 bedroom town home, listed as a REO (Real Estate Owned) for $237,900, while another purchased it at $649,000 in 2005.
There is not one week that I’m not showing properties in this gated community. Last week, I was dealing with clients from Ohio who decided, after 14 visits to the island, to purchase their own piece of paradise in this particular complex. They came prepared with a list of condos they wanted to see.
We also went over the recent sales: 10 units sold in the last 6 months from $237,900 to $355,000 (5 REOs, 3 short sales, and 2 regular sales), the current escrows: 10 units were in escrow (4 REOs, 5 short sales, 1 standard sale), and the units for sale: 10 units were available. Out of the ten units, we looked at eight.
Before going to our showing appointments, I explained to my clients that the distressed properties have become a common practice due to the current economic slowdown affecting the market. A practice has apparently developed in distressed sales (short sales and REOs) for the seller/lender to entertain multiple offers.
My clients fell in love with a large 2 bedroom unit listed as a short sale and they were ready to submit an offer. Before writing it up, I called the listing agent to check on the status of the listing that was on the market for the last 50 days. The agent disclosed the existence of a “low ball” offer he received the night before and he encouraged us to submit ours as quickly as possible.
We did—as well as 4 other buyers! Now the beautiful unit my clients were dreaming about became the dream of 6 buyers. At this point, the 6 potential buyers were asked to bring their highest and best offer—the dream of getting this unit slowly looked more like a nightmare to my clients who decided to keep dreaming just a few hundreds yards away and not get into a betting war!
This is Hawaii after all, not Vegas, and not worth the gamble.
annie
February 21, 2011
Catherine. This is really informative! Merci!! I like the realistic picture you paint. Sometimes the prices warrant a person coming in higher than asking price, (or entering the bidding war), as long as its a fair price based on the price that others that have sold. Good luck!
annie
February 21, 2011
Catherine. This is really informative! Merci!! I like the realistic picture you paint. Sometimes the prices warrant a person coming in higher than asking price, (or entering the bidding war), as long as its a fair price based on the price that others that have sold. Good luck!
Jeremy Stice, R(S)
February 21, 2011
Catherine,
Great insight here. I think you are doing a great job about educating your clients about the enormous and wide ranging effect that the distressed property marketplace has affected both buyers and sellers. In some areas on Maui 75% of the comps are either Short Sales or REOs. We are seeing “bidding wars” on highly desirable REOs at a myriad of price points. I would agree that sometimes it is a good idea to see on the sidelines and see what transpires but other times especially for buyers who know exactly what they want and can afford to pay for it, you really need to step up to the plate and give it your best shot.
I think you are far more likely to be kicking yourself if you don’t get into the Hawaii market at this time. There are always going to real estate “pundits” who think you overpaid by 5% but what’s really interesting is when you ask them about their own personal portfolio which more often than not amounts to a goose egg. Real estate is local and it is very specific, over generalizations need not apply. The various markets in Hawaii are hot and they make sense, it’s time to jump back in. Listen to your heart, look at the facts, and listen to your agent. Our job is to advocate your best interests at all times.
Keep up the good work Catherine.
Jeremy Stice, R(S)
February 21, 2011
Catherine,
Great insight here. I think you are doing a great job about educating your clients about the enormous and wide ranging effect that the distressed property marketplace has affected both buyers and sellers. In some areas on Maui 75% of the comps are either Short Sales or REOs. We are seeing “bidding wars” on highly desirable REOs at a myriad of price points. I would agree that sometimes it is a good idea to see on the sidelines and see what transpires but other times especially for buyers who know exactly what they want and can afford to pay for it, you really need to step up to the plate and give it your best shot.
I think you are far more likely to be kicking yourself if you don’t get into the Hawaii market at this time. There are always going to real estate “pundits” who think you overpaid by 5% but what’s really interesting is when you ask them about their own personal portfolio which more often than not amounts to a goose egg. Real estate is local and it is very specific, over generalizations need not apply. The various markets in Hawaii are hot and they make sense, it’s time to jump back in. Listen to your heart, look at the facts, and listen to your agent. Our job is to advocate your best interests at all times.
Keep up the good work Catherine.
Beth Thoma Robinson, R(B)
February 22, 2011
Buyers are lucky to have an agent who is completely familiar with the inventory and can advise them so well. And you were too modest to mention that buyers you represented successfully completed a short sale at Colony last year!
Beth Thoma Robinson, R(B)
February 22, 2011
Buyers are lucky to have an agent who is completely familiar with the inventory and can advise them so well. And you were too modest to mention that buyers you represented successfully completed a short sale at Colony last year!
Kathy E Awai, R(S)
February 22, 2011
Catherine, Buyer’s really should not wait too long because if they worry about paying a little more, guess what? The interest rates are rising as well. Before you know it, we will have the same mentality that we had around 2003 and 2004 when “Mr. & Mrs. Buyer” kept thinking prices would not rise anymore and never bought their “dream property”. Well here we are again, low prices, great interest rates, lots of inventory, why wait? If you are a serious Buyer, you need to go for it. Many properties are still at historically low prices, prices that are as low or lower than 10 years ago. If your looking and are serious, this is the time to go for it!
Kathy E Awai, R(S)
February 22, 2011
Catherine, Buyer’s really should not wait too long because if they worry about paying a little more, guess what? The interest rates are rising as well. Before you know it, we will have the same mentality that we had around 2003 and 2004 when “Mr. & Mrs. Buyer” kept thinking prices would not rise anymore and never bought their “dream property”. Well here we are again, low prices, great interest rates, lots of inventory, why wait? If you are a serious Buyer, you need to go for it. Many properties are still at historically low prices, prices that are as low or lower than 10 years ago. If your looking and are serious, this is the time to go for it!
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[…] Avid joggers, they were out of the door by 5:30 a.m. every morning, ready to explore a new neighborhood. By the time we were meeting for appointments, they could tell me which neighborhoods they liked and why. They were able to feel every complex and could tell which one was too dense or very private, or which amenity centers they liked best. After a few days, their mind was set with Waikoloa Colony Villas. […]
Waikoloa Colony Villas – No Barbecue Makes a Deal Go Up in Smoke « Hawaii Real Estate Market
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[…] Avid joggers, they were out of the door by 5:30 a.m. every morning, ready to explore a new neighborhood. By the time we were meeting for appointments, they could tell me which neighborhoods they liked and why. They were able to feel every complex and could tell which one was too dense or very private, or which amenity centers they liked best. After a few days, their mind was set with Waikoloa Colony Villas. […]
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[…] Waikoloa Beach Resort and, more specifically, Waikoloa Colony Villas is the place you want to be on the Kohala Coast, you will have to choose from two 3 bedroom […]