Maui Condo Deal of the Month

Even in the current real estate market where properties are at rock-bottom prices, there are still properties priced well below market value. One such property is a Kai Makani REO (Bank-owned/Foreclosure) 3 bedroom / 2 bathroom condo priced at $352,900.  This unit encompasses 1,238 square feet of interior living space and features an open floorplan, in-unit stacked washer/dryer, granite countertops, vaulted ceilings, and stainless appliances. Kai Makani was built in 2007 and it shows, as units feature upgraded designs and quality craftsmanship throughout.

How is this unit a good value? Check out other Kai Makani condos currently for sale. As you can see, there are SEVEN smaller (1,075-1,126 sq. ft.) 2 bedroom / 2 bathroom units for sale, ranging from $399K to $625K. The only other 3 bedroom / 2 bathroom unit is listed at $599K. I don’t expect this unit to last long on the market before a savvy buyer or investor swoops in.

Contact Alex at Alex@HawaiiLife.com or Mariah at Mariah@HawaiiLife.com to keep abreast of the best deals in Maui real estate.  Oh, and check out the beach across the street from this unit, the longest walking beach on Maui.

UPDATE: PROPERTY WENT INTO ESCROW WITHIN A FEW DAYS OF HITTING THE MARKET. Contact us if you’d like to be kept abreast of great values in Maui real estate.

For many of today’s home buyers, there is the perception (which has been advanced by various media outlets) that short-sales are the best value for real estate purchases.  However, potential Maui buyers must have a better understanding of what a short-sale entails before focusing their efforts solely on those distressed properties.  In a nutshell, a short sale means that the lender/lienholder is accepting a pay off for less of what is currently owed on the mortgage.  For example,  Bob owes $350K on his mortgage, but his property is only valued at $300K, then his lender, Bank of Sunny Hawaii, can accept at their discretion to accept the $300K.  Why would the bank accept less money?  Well, if the borrower is likely to default on his obligation, then the bank would have to go through the foreclosure proceedings (which can be lengthy and full of legal expenses) and have to sell the property as an REO or at auction (which normally does not sell at comparable market prices).   Buyers need to aware that a short-sale may be listed at lower than market price by the seller (hence enticing many offers from home buyers looking for a deal), but although the offer may be accepted by the seller, that does not mean that it will be accepted by the lender, who ultimately holds the power in this scenario.  As banks make up their own rules as they go along, it is within the normal time frame for a short sale to take 6 to 12 months to complete and can require mountains of additional paperwork from both the seller and buyer.  As we are on an island far removed from many of the lenders who originated mortgages for Maui real estate, the distance can become an additional obstacle at a time when all you want is a smooth transaction.  There are great values to be found in short sales, however those are comparable to motivated lenders selling their REO’s and motivated equity homeowners.  Search accordingly.