I am constantly getting emails, sent through our website www.bpghi.com, from prospective buyers who find the relatively inexpensive Big Island Real Estate to be appealing investment property. Elsewhere in the Islands prices have been upwards of half a million to get anything decent for years. While prices have come down in all areas since 2008, nowhere in Hawaii are prices more reasonable now than on The Big Island. In fact, in the regions known as Puna and Kau', one can still find a very livable home -often on an acre or more of land - for around $100,000! Cheaper than in many areas of the mainland!
So it isn't surprising that I get so many email inquiries about these areas. We have some great real estate opportunities here that can't be found anywhere else in the islands. But I often find myself having to explain that just because something is priced low does NOT mean it is a great deal. Even in Hawaii there are 'dog' properties that only the very brave - or very stupid - should undertake! It might be termite ridden, in the middle of a curent lava flow path, built without permits, built on the wrong property or within a set-back, or in such poor repair that the only solution is tear it down and start over.
The smart investors realize that the best deals are not always the cheapest deals. One reason for that is that the bottom of the market is the most active segment, with a lot of people scrambling to buy those really cheap listings. So, with multiple bids from frenzied investors buying sight unseen, the worst houses in this market often sell for even more than they are listed for - and definately more than they are worth. That is because the cheap listings are almost always going to be 'fixers' or have other issues that will ultimately cost the buiyer more than if they had bought a 'fixed' property to begin with.
To me, the best deals are not at the bottom of the market, but rather a bit higher up. Many of the privately owned, well maintained homes are sitting on the market largly unnoticed while everyone gets excited about the cheap fixers and REO's. After awhile, if he really wants to sell, the owner of that nicer property might find he has no choice but to compete with that low-end market. Even if he won't lower his list price, you can bet his agent is telling him he might want to consider lower offers. That is where the wise investor steps in and gets the beautiful, well maintained property for a great price and still well below replacement cost.
So my advice to anyone looking for those Big Island Real Estate deals is to look beyond the cheapest listings! Cheap is not necessarily the same as a deal!
Call me to talk Big Island Real Estate!
Realtor Salesperson | Bridge Real Estate Hawaii
Search the MLS www.bpghi.com
Auction Properties click here
Pre-Qualify Online: Easy as 1, 2, 3 click here
Looking for deals? click here