HONOLULU, Hawaii — When real estate sales are slow, the bargain hunters come out, and their favorite place to look for great deals is at real estate auctions. But not every real estate auction is a foreclosure. Honolulu real estate brokerage firm Elite Pacific Properties is holding a combined live and online auction for a rare parcel of oceanfront land in a highly desirable section of the pricey Diamond Head neighborhood. Amid all the news of the national housing slump, people might assume this is a foreclosure auction. While not a foreclosure, it could end up as a bargain. The city’s current assessed tax value is $6,850,100, and it was recently appraised at over $7 million — yet the minimum bid is just $3.6 million.
Why an auction? “Real estate auctions force buyers into action – if they are interested, they have to act now,” said Stephen Cipres, Elite’s co-founder. “This is not a distress sale, but the seller is motivated. They are expecting to get bids above the minimum, and buyers will be looking for a good deal.”
Many REALTORS(R) consider this area to be the most desirable of all Oahu real estate. Celebrities, corporate executives, and international jet-setters join wealthy families from Oahu in this pocket of luxurious homes on Diamond Head Rd. The lot to be auctioned is in the most desirable stretch of just 8 oceanfront parcels between two secluded beach parks, overlooking the beautiful reef-filled waters. Close to Waikiki but sheltered from the city by dramatic Diamond Head, whales and surfers share the water and sunsets are magnificent. Cipres points out “A spec-built house three lots away on one side recently sold for $10.8 million, and a billionaire is currently building a house 3 lots away on the other side after paying $6.8 million for a property just to tear down the existing houses. We know you can build a spectacular home on this lot for $2 million turn-key, so this offers quite an opportunity for someone to build their dream home or for an investor to build a home for $2 million and sell it for about $10 million.”
While sales have generally been lackluster across the state and the nation, the opposite is true of upscale Oahu real estate, which had more sales of properties over $5 million in the first three months of 2008 than in any quarter in history.
“This property is what’s known as a CPR, which means it is divided into two lots that can be owned separately, each of which can have a legal house on it. Or buyers may want the entire parcel. So we’re giving bidders three options” explains Cipres. “They can bid on the oceanfront 9,146 square feet with a minimum bid of $2.6 million, the 5,000 square foot ocean view portion with a minimum bid of $1.2 million, or the entire 14,146 square foot property with a minimum bid of $3.6 million.”
The live auction is scheduled for Saturday April 19th on the property, with registration beginning at 11 am. Valet parking will be available, and well-known auctioneer Joe Teipel will handle the live bidding, including the charity auction that precedes the real estate auction. “Bidders can also place a bid at our online real estate auction website, www.elitepropertyauctions.com” adds Elite co-founder Paul Mayer. “This is a convenience for anyone who can’t be here in person. Extensive property information is available online, and it takes just seconds to register and bid.” The online auction ends April 15th to allow Elite personnel to verify bidders’ identity and to confirm their bid and ability to purchase, and then the high bids will be entered into the live auction. One benefit of bidding online is that the seller is providing a $20,000 bonus to any ultimate buyer who bids online, although this is also available to live auction buyers who register by April 18th.
While Elite specializes in upscale Hawaii real estate, their online auction site www.elitepropertyauctions.com also has more affordable real estate auctions, with houses, condos, income property, and land, some with starting bids as low as $1,000. “These are not foreclosure auctions, just a different way of marketing real estate for a motivated seller who wants to sell fast. An auction compresses the time frame to sell and the opportunity to get a bargain attracts attention in a crowded market where there are more sellers than buyers,” says Mayer.
Property information, bidding, and bidder registration documents are available at www.elitepropertyauctions.com, and interested parties can request a free Property Information Package on CD with even more information.
Elite Pacific Properties is a real estate brokerage firm specializing in upscale properties, offering buyer and seller representation, property management, and real estate auctions for properties located throughout the state of Hawaii.