Posts: 174
Threads: 4
Joined: Jan 2006
I have been watching a foreclosure that has gone thru the entire process of being showed by the commissioner and then being put up for auction. It went back to the bank about 3 months ago and has not been put back on the market by BofA. There is a good chance it may not be put back on the market for at least year or more. I have been watching this property since September of last year.
Ka'u Web
Ka'u Blog
Ka'u Homes
Pohue Bay
Kona Forum
Dream Kona
Da Kine Hosting
Da Kine Web Design
Posts: 1,727
Threads: 29
Joined: Feb 2006
The house next door to us sold at a foreclosure auction about two months ago for around $575K. About three weeks prior to the foreclosure auction, someone offered $350K for it and was turned down. Several weeks after the foreclosure aucton it was on the market for $250K. Lots of folks looked at it, but no takers. The folks who offered $350K didn't reappear. Apparently, getting the mortgage is a problem. They lowered the price to $209K and it finally has a contingent offer on it. At this moment, I don't know any more than that.
We've had our eye on three properties for a long time. About a year and a half to almost two years ago we offered $85K on one property and it finally sold two weeks ago for $95K but it didn't sell to us and our Realtor didn't get notice someone had put a bid on it until it was sold so we couldn't put in an additional offer. One of the other properties we had been looking at also sold that same day, and the third property had sold mere hours before we were getting around to putting an offer on it, although that had sold the week before. So what with all these properties we'd been eyeing selling off all of a sudden, we got a bit more serious about looking. A better property than the ones we'd been looking at came up on the market, we looked at it and made an offer the second day it was on the market and there were three offers for the seller to consider. We were fortunate that he chose ours so now we get to go find a mortgage. So far it seems fairly intricate but do-able. I don't really think we've seen the bottom of the market, but we are buying this house to live in so it doesn't really matter.
"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson
"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson
Posts: 27
Threads: 2
Joined: Dec 2010
It is very close to our experience. We had some properties in mind to look at/consider, but they got under the contract literally days/hours before we could get a chance even to look at them. Stuff is flying off the shelf.
Posts: 4,533
Threads: 241
Joined: Jan 2006
My guess (IMHO just a guess!) is that like when real estate was going up, everyone jumped in by 95% to the top, people are jumping in at 95% to the bottom. (my 95% is not any prediction just something to use for illustration purposes. Just like sellers complained when they missed that top by 5%, buyers will do same about missing bottom by 5% but if your plan like hotcatz's is to live there long term, then 5% means little over 30 yrs - 1/6 of 1%.
Our property that is being sold was priced at one time at about double what we paid. We are selling for a little over our cost because we are making repairs, and the subdivision was conditionally approved. But we figured our expenses and labor cost and that is the percentage we used to price it. If the subdivision hadn't been approved it would not be worth more than we bought it for IMHO. The subdivision is the big item making our listing pricing correct. The repairs are making it visually appealing, like fixing the tired paint on interiors for people who don't see past that stuff, and then the behind the scenes repairs that are the expensive repairs that no one sees but home inspectors, and doesn't make it more appealing but makes it pass home inspections.
Posts: 604
Threads: 50
Joined: Apr 2009
quote:
Originally posted by John S. Rabi
There are 1,200 properties owned by IndyMac/One West still in "waiting" to hit the market just in Kona.
The really hard part for me personally is seeing something that was vacant two years ago, finally coming on the market. Two years of deterioration due to no maintenance. I'm sure it is probably a common story.
Life goes on, with you or without you.
Peace and long life
Posts: 1,727
Threads: 29
Joined: Feb 2006
Hmm, actually, it is interesting to consider how many of the houses in this country which are now owned by the financial institutions. How many big institutions are still left out there and what percent of the real estate do they own? Since they have such a huge chunk of it, it's in their own best interests to not devalue property too much, at least IMHO. I've been expecting prices to take a huge nose dive, but it's been sort of a gradual settling and I don't know how much of this is/was engineered by the big financial companies. Or even if it could be manipulated by them.
We are seeing some prices comparable to 2002 and on some select properties, even lower down to 2001/2000 prices. I believe the reason the property we purchased was so low was because it was priced to sell immediately. It was sold by the children of the folks who built it, none of them wanted to live in it and they would prefer the money from the sale. It is in excellent condition in a quiet established neighborhood and has a clear chain of title since it never went through foreclosure and multiple lending agencies. By getting the new mortgage through our local credit union, the mortgage will never be sold to anyone we don't know and the money we give them will be used to help the community. For anyone else buying property, I'd recommend looking into getting a mortgage through local banks (Bank of Hawaii is a solid institution) or credit unions since they re-invest in our community.
"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson
"I like yard sales," he said. "All true survivalists like yard sales."
Kurt Wilson
Posts: 1,243
Threads: 55
Joined: Feb 2008
I can speak as the wife of a real estate agent, the market is absolutely on fire... by leaps and bounds, with bank owned properties under $ 125 K taking the lead, but he has several in escrow above $500,000
Aloha au i Hawai`i,
devany
www.myhawaiianhome.blogspot.com
www.eastbaypotters.blogspot.com
Posts: 94
Threads: 7
Joined: Jan 2009
Am I missing something? Market on fire?? I follow Harry Pritikin closely haven't seen any signs of improvement. Sales are few compared to listings and often quite a bit lower than asking. Some houses in my area have dropped their prices many times and still can't sell.
Posts: 2,653
Threads: 42
Joined: Sep 2006
Here in my area of S. Fl. it is also hot, but again it's mostly short sales and REOs. If properties are priced for the current market they sell. There are still many would-be sellers that continue to follow the market down. If you want to sell in a declining market you need to get ahead of the decline.
Pua`a
S. FL
Big Islander to be.
Pua`a
S. FL
Big Islander to be.
Posts: 4,533
Threads: 241
Joined: Jan 2006
I dont think "on fire" to the recent 2003-2006 standards but briskly to the 2000-2002 Hawaii standards when things were moving briskly but not run-away.
If in the 1st quarter of 2003 you bought a house for $165K, today it would have appreciated to $175-180K (that is US Dept of Housing stats based on actual sales). Appreciating $10-15K in 8 years is probably just slightly more than having the money in a regular savings account lately which isnt a great deal. You are increasing your asset to debt ratio on the house by making the payments, tax write offs, and well you can remodel as you want! All big pluses to me.
If you bought in 2004,5,6 - yes it isnt pretty at all but someone has to buy high and sell low or someone cant buy low and sell high. I am not making any statement about fairness or if it is right, it just is. Just the same as if you watched say Microsoft stock and finally bought the day before Bill Gates went on extended medical leave and their stock dropped - the same stock that someone bought low and decided the day before the announcement to sell.
