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+--- Thread: home sales data in HPP ? (/showthread.php?tid=8273)
RE: home sales data in HPP ? - csgray - 01-01-2011
Actually there currently a lot of homes languishing on the market that show "pride of ownership" and are still not selling at very low prices compared to their last sales price, at least in Puna. We were house shopping during the first wave of foreclosures, and a lot of the houses needed cosmetic work, or easily taken things like pumps and water heaters replaced. Now I am seeing very together homes priced at half what the seller paid for it, and still not selling, this is depressing prices on all houses and setting a very low bar for home prices. Until the glut of unsold houses clears out, prices are only going to go down. Very, very low priced properties (like an HPP 3/2 on a fenced acre with new roof and catchment for 78,000) are moving very quickly, often within a few days of hitting the mls.
Carol
RE: home sales data in HPP ? - missydog1 - 01-01-2011
Yes, Puna is unusual for all the new and never lived in homes that are for sale. I'm sure that's an accurate picture.
On the west side, where I saw the REO's. they were bad. Maybe the first wave of FC's was swift, but the later wave took much longer to happen, and meanwhile things deteriorated.
There was LOTS of stuff needed in the REO's my son looked at. Needed septic pumped, pipes to septic had been disconnected, carpet was trashed, walls had holes in them, as did the doors, appliances ruined, yard was dead, plumbing issues.
We didn't see any pride of ownership REO's. We saw pride of ownership in the short sale properties, but none of them were actually closing even though they had offers, so our realtor started skipping over them, as he was trying to make the tax credit deadline.
So yeah, HPP is unique. I don't think that any REO's in my neighborhood would be nice at all. I would be surprised.
RE: home sales data in HPP ? - John S. Rabi - 01-02-2011
quote:While I don't "skip" them, I educate my clients right at the beginning about short sales. The sellers of those properties will accept ANY offer, they don't care, they know their acceptance is subject to the approval of the lender anyway.
Originally posted by KathyH
We saw pride of ownership in the short sale properties, but none of them were actually closing even though they had offers, so our realtor started skipping over them.
The "problem" is all lenders use different formulas to arrive at the price they will accept and nobody knows those formulas. A short sale takes months, will go through numerous "desks" before the final acceptance is approved by the investor, and it has nothing to do with market value. It's just a certain percentage of the outstanding loan amount that the lender is willing to take. The smart sellers and listing agents get the short sale approved before wasting their times. Most short sales never become real sales.
Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
888.819.9669
johnrabi@johnrabi.com
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
(This is what I think of the Kona Board of Realtors http://KonaBoardOfRealtors.info)
RE: home sales data in HPP ? - Bullwinkle - 01-02-2011
dont short sales appeal/ work better cash buyers because of the lack of time allowed to get lender approval by the banks.
There also seems to be title insurance issues with some short sales - title companies shying away from all but the most transparent of title transfers these days making reo's a bit more speculative. ( my buddy is a player at first american)
while conventional home owner owned sales are more financing and title company friendly?
also what bearing (and percentage of current resale value) does replacement value have on establishing value?
With many owner builders coming in at about 100$ a square foot - would that not be the base line?
All I know is that 2010 dollars seem to be worth twice what 2007 dollars were - grin
Not only in real estate but other fixed assets too
RE: home sales data in HPP ? - csgray - 01-02-2011
Kathy H,
The poster was asking about houses in Puna, not Kohala or Kona, so what you saw when your son was looking on the west side is completely beside the point.
HPP is not unique in this, it was just the example I used because the OP asked about HPP. Ainaloa, Nanawale, Orchidland, Leilani, and the Hawaiian Beaches/Shores/Shores Recreations Estates subdivisions all show the same trend: nice homes dirt cheap, including homes that are not short sales/REOs, but are owned by people who have to get out now, and whose prices are being forced down by all the discounted inventory on the market. This is a good time for young families to buy, if they have the credit to do so, home prices are finally in line with wages again.
Carol
RE: home sales data in HPP ? - macuu222 - 01-02-2011
Yep..Now is the time to buy in Puna. You won't see this incredably depressed market again for at least another year! BTW...I was sitting next to Billy Kenoi on a flight to Honolulu just before Christmas. He said that the free bus won't be free anymore. And taxes will be going up!
RE: home sales data in HPP ? - John S. Rabi - 01-02-2011
quote:You would think that was the case but it isn't. It doesn't matter what you put in the contract, everything is subject to the approval of the banks, and needless to say, they don't pay for anything. By the time the short sale is approved basically the whole original contract is thrown out and replaced by the standard-language addendum of the banks. I had two short sales closed last year, no wonder I have so much gray hair. [
Originally posted by Bullwinkle
dont short sales appeal/work better cash buyers because of the lack of time allowed to get lender approval by the banks.
][][]Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
888.819.9669
johnrabi@johnrabi.com
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
(This is what I think of the Kona Board of Realtors http://KonaBoardOfRealtors.info)
RE: home sales data in HPP ? - mac nut - 01-02-2011
They should re-name them long sales!
Mac nut
RE: home sales data in HPP ? - missydog1 - 01-02-2011
Hi Carol,
Sorry to frustrate you. I understand what you are saying about Puna, and I agree with you. I spent a long time looking at the Puna market, so I'm not ignorant of it. You made a more general statement to John about market value, and he disagreed, so that's why I brought up an outside example.
Personally, I think anyone who wants to buy real estate on the Big Island should not be dismissive of learning what;s going on in other regions. Knowledge of the island wide market should be part of making a decision and weighing market value.
This board is Punacentric, but Puna is not an island of its own, you know?
Every piece of property I have bought here, I have looked at every district of the island to see how the pricing and inventory were going, just for the purpose of being an informed buyer.
RE: home sales data in HPP ? - John S. Rabi - 01-02-2011
quote:Damn! Never thought of it! You are so right! One took four months and the other took five months to close! [
Originally posted by mac nut
They should re-name them long sales! Mac nut
][][] BTW, I have/had three other short sale offers lingering for months. The bank didn't even reply at all to two of them (regardless of the time schedule in the contract) and the third was rejected after three months. By that time the buyer already "bailed" on the property and made an offer on something else.Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
888.819.9669
johnrabi@johnrabi.com
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
(This is what I think of the Kona Board of Realtors http://KonaBoardOfRealtors.info)