In continuation to the Ultimate Guide to Wailea Condos – Part 1, in this installment we will explore condominiums allowing vacation rentals in the master-planned community of Wailea. Be sure to check Part III as well.

Grand Champions

Enjoying two pools, jacuzzis, barbecue areas, and tennis/golf privileges (as available), owners and visitors of Grand Champions at Wailea know the value of being in Wailea at an affordable price point. Built in 1990, this property encompasses 188 units (fifty-four 1 bedroom / 2 bathroom, the remaining units being 2 bedroom / 2 bathroom) set on 12 acres bordering the Wailea Blue Golf Course and the Wailea Tennis Club, where players can enjoy a match or pro-level lessons. With a relatively high owner-occupancy in the 50%, financing becomes more feasible. Some units have breathtaking ocean views and pricing is considered the entry-level point into Wailea for vacation rentable properties. Keep in mind that previous sales (for the 12 months prior to publication) ranged from $334K to $765K, marking the entry point into Wailea condos. View all condos for sale at the Grand Champions for a better idea of what the current market has to offer.

______________________________________________________

Hoolei

One of the most unique luxury properties in Hawaii, Hoolei has set the standard for Maui luxury living. Since its inception in 2008, Hoolei has been delighting even the most discerning buyers by offering superb-quality build, immense floor plans, high-end finishes, and the unparalleled pairing of turn-key condo ownership with the privacy of stand-alone single-family homes. Offered in 3 different floor plans, the Maile, Hibiscus, and Plumeria, all units are 3 bedroom / 3.5 bathrooms and differ in size from 2,426 square feet to a spacious 3,076. All units feature an elevator, private garage, storage area, breathtaking views, and exclusive use of the common areas: one of the most unique condo pools in Hawaii, a full-sized fitness center, concierge services, and shuttle services. Developer units offered pre-paid membership to the Grand Wailea’s Kuleana Club, with access to all pools, beach services, and spa grande. Units on the back row come at a premium due to their increase privacy and view planes. Peruse through all Hoolei condos for sale to see some of the most amazing properties in Maui. Sales in the past year have ranged from $2.075M to $3.125M, with 3rd row units being the most sought-after.

___________________________________________________________

Palms at Wailea

Ideally set on the border of Wailea and Kihei, Palms at Wailea (Palms I) allows short-term rentals whereas its sister property, Wailea Palms (Palms II) does not. Incredibly manicured and maintained, 17 acres provide the setting for 150 contemporary-designed units a short walk from Keawakapu Beach and The Shops at Wailea. Common elements include a barbecue area, a pool, jacuzzi, and a cabana-style clubhouse. Units are fairly spacious and vary in size from 1 bedroom / 2 bathroom (1,022 square feet), 2 bedroom / 2 bathroom (1,022-1,149 square feet), to one 3 bedroom / 3 bathroom unit (1,794 square feet) and offer indoor/outdoor living via large lanais and open floor plans. Zoned as A-1, it is managed by Destination Maui. Sales in the previous year have varied from $575K to $912K, with interior units (offering the best, unobstructed views) having a premium. View Palms at Wailea units for sale and contact us with any questions.

_______________________________________________________________________

Polo Beach Club

Beachfront on one of the most picturesque beaches in Hawaii and with a beautiful reef perfect for snorkeling, Polo Beach Club is among the best values for waterfront luxury condos in Maui. Two and a half acres provide the setting for an eight-story building encompassing 71 units, all of which are 2 bedroom / 2 bathroom units ranging from 1,186 to 1,321 square feet. A beachside pool with spa and barbecue area are for the exclusive use of owners and guests, with the added benefit of having an underground, covered parking facility. Built in 1982 and zoned as H-M (Hotel District), some of the units are in semi-original conditions, which is reflected in the price (only one sale in the past year, at $1.75M). View all Polo Beach Club condos for sale and contact us if any sparked your interest.

Part III contains information regarding the ultra-posh Wailea Beach Villas, perennial favorites Wailea Ekahi, Wailea Ekolu, and beachfront Wailea Point and Wailea Elua Village. Contact us with any questions.

Maui Real Estate: Disclosure

Recently a client asked what needs to be disclosed by the seller in the course of a real estate transaction. In the Aloha State, Hawaii Revised Statue Chapter 508D requires a seller of real property to disclose material facts known to the seller that can be observed from visible accessible areas. Great. But what does that mean?

First, let’s define ‘material fact’. The applicable Statue defines it as “any fact, defect, or condition, past or present, that would be expected to measurably affect the value to a reasonable person of the residential real property being offered for sale.” Simple enough. Armed with that definition, filling out the Seller’s Real Property Disclosure Statement should be a cinch! Except, it isn’t. For example, if somebody died in a home, should that be disclosed under additional facts? To some people, this is critical information which will automatically disqualify that property as a potential purchase, yet to some others it is not a big deal. Or in a question such as ‘Is the property subject to excessive air pollution’, with what metric is ‘excessive‘ measured? Some people may be extremely sensitive to air conditions, vog being specific to Hawaii, hence they would consider ANY level pollution to be restrictive of their enjoyment and, as such, excessive. Furthermore, whether there is a ‘pest problem’ can be open to an individual perceptions. Although a seller may find mice from time to time in a Kula property (which is quite common) and not find it to be a ‘pest problem’, a buyer unaware of overall conditions in that district may find it to be an a HUGE problem. Clearly, interpretation can be very subjective and it could easily be argued one way or the other. Just ask any attorney worth their sheepskin.

As a seller, by disclosing all known material facts in good faith and with due care, it’d present a much stronger position if said disclosure came into question in front a judge and jury. So whether to avoid potential liability or, well, to do the right thing: if in doubt, then disclose it!

Disclosure: The opinions on this post are NOT legal advice. The author is NOT an attorney nor has ever portrayed one on TV. Potential buyers are encouraged to consult experts in the appropriate field (i.e. law, taxes, financial planning, construction, engineering) in order to best protect their interests.

Time and time, we are contacted by buyers who are ‘looking for a great deal on a foreclosure’, because… well, just because. They have heard – on the news, radio, newspaper, bulletin board, through a cousin, wherever – that REO’s and short sales are the best deals. And the resulting absorption rate of these properties is impressive. Our current inventory of condos is 1,001 and 37 of those are REO’s (easy math on this one, 3.7%), yet in the past month 18% of closed sales were REO’s.

So with all the frenzy about ‘smoking deals on foreclosures’, it begs to question whether they really are the best values on the market. For example, we had posted about what we considered to be a particularly good deal at Na Hale O Makena, which ended up selling a month ago for $925K, at 72.54% of the reduced asking price ($1.275M).  Since Na Hale O Makena was built in 2002, only 3 units have sold for less, and in the 2 years prior to this sale, the average selling price had been $1.63M. The sale in question was not a REO or Short Sale. Compare that to a Halama oceanfront home we had mentioned on a previous post. It was a REO (foreclosure/bank-owned) listed for $2.6M, went under contract within 2 weeks of listing,  and its sale closed a few days ago for $3.02M, 116% of the asking price. On multiple-offer scenarios, it is not uncommon for a buyer’s emotion to take charge and result in a bidding war. Was it a good deal? Arguably it was well within its fair market value spectrum, but  not an obvious well-below-market sale.

Properties are priced individually and reflect different motivational levels on the part of the seller (as well as their grasp on reality). There are many properties in the Maui real estate market in which a conventional sale property is priced below its comparable REO counterpart. Instead of focusing on classification (i.e. REO), buyers would best be served by being represented by a knowledgeable Buyer’s agent who can find/negotiate the best deal on their behalf.

Disclaimer: Information above relating to real estate values are the opinion of the poster based on available data and are not a formal appraisal of said properties.

Views from a Maui Realtor

The recession has had a long-lasting effect in the lives of most Americans, with an unacceptable number losing their homes and their lives’ savings. Many have been blamed, from banks for having loose lending criteria (i.e. no loan docs, stated income), to mortgage brokers for ‘pushing’ through loans without giving consumers the opportunity to review, to Realtors for selling homes to consumers they couldn’t afford, to, well, buyers who ultimately purchase properties they knew they couldn’t afford to keep. Although for many the financial meltdown negatively impacted their lives, there are lessons that we can all learn and hopefully implement as we move forward.

Our collective mentality has changed in how we see our properties, no longer is a house a cash-dispenser to be refinanced with ease and sold at profit at any time. Properties have transcended from being a dispensable asset, into what they are and should be: a HOME! Hard-earned equity has become a treasure, to be increased not necessarily by market fluctuations (which are obviously unpredictable and not to be relied on any time in the near future) but rather by paying down the principal through years of ownership. We, as a society, have changed our spending habits, not relying on available credit to live well outside of our means. Unnecessarily lavish lifestyles and MacMansions have been replaced with frugal behaviors and eco-friendly upgrades. Even in markets such as Maui that have not been hit as hard as REO-riddled Florida, Michigan, Arizona et al, buyers are making purchases with a mentality of staying put long-term. Although many fortunes were made by investors/homeowners flipping real estate at the peak of the market, most potential buyers realize that given current conditions, it may be several years before they can sell at a profit – surely foreclosures laws such as Hawaii Act 48 are only prolonging the inevitable: REO’s that must be absorbed by the market before we can move to more normal market conditions.

Those affected by the economic downturn (which is, well, most of us) have changed our credit-card maxing ways into a more simpler life: buy only what you can afford, treat our homes as our most precious financial asset, and have a cushion for that rainy day. Clearly these are only my opinions based on observations/experiences and may perhaps be wishful thinking on my part.

Comments are always welcomed and appreciated.

One of the biggest pieces of legislature concerning the foreclosure process is Hawaii’s Act 48, which was implemented in May. Take a moment to read more about Act 48 and how it changed the foreclosure process in Hawaii. There have been a myriad of consequences, some expected by those who crafted the legislation and some unforeseen.

First, Fannie Mae et al quickly adapted by changing their policies, whereby they would be pursuing foreclosures through the judicial route rather than non-judicial. Some critics say that foreclosing lienholders are skirting around what the legislation intended to do (protect homeowner’s rights), but clearly the judicial route was always an option. When there is a traffic jam in your favorite shortcut home, you take the longer way that still gets you there. This should have been expected and is well within the lienholder’s rights to do so. In addition, as owner-occupants are allowed to request mediation on non-judicial foreclosures, this is allowing homeowners more time in their home. Although the intent of this legislation is to allow homeowners (who must be occupants of the property) an opportunity to meet with their lender and try to work out mutually agreeable resolution, it is also clear that many may use this method to stall the process and prolong their stay in their property – presumably without paying mortgage payment during the foreclosure process. Furthermore, with some of the largest lienholders foreclosing judicially now, it has created a logjam in the courts, which were already underfunded and understaffed. This is merely prolonging the inevitable: these distressed properties must be absorbed by the market. Whether it happens now or in 2 years, it is a reality that we have to face.

Act 48 had a noble intent: protect rights of homeowners at a time when lienholders may be hastily foreclosing on properties. However, the implementation of this legislation fell short of its mighty objectives. If you have been impacted by Act 48 or have feedback, leave us a comment.