Yes you can find REO and Short Sales on Maui. In fact approximately 30% of closings are still Distressed Properties. However it is What you will find that surprises many buyers.
Take homes similar to the one pictured above. REO, remodeled (not professioinally), with non permitted issues, bad electrical and plumbing and a dead yard. Did I mention the roof and that is was vacant and vandalized for 3 years prior to the bank wanting almost 400k.
I have buyers call me almost daily asking about the “shadow inventory”. We do have some, but it is trickling on to the market and no for 400k you will not get a beachfront home. Properties on Maui listed 400k and under typically have 5 offers within days of being on the market.
The short sales process is currently averaging 2-4months for approval time. This is the one bright area that I feel buyers can benefit. Typically short sale listings are occupied (ie hopefully better cared for) and the Seller will have to give you a Seller’s Disclosure Report so you have a history of the home unlike an REO where it is the dark hole of the unknown.
If buyers have the patience to weed through the REO trash to treasures or have the patience to wait out the lender’s approval on a short sale you can be rewarded, but expect to role up your sleeves because you and your agent will work for that deal. You will also have to have your running shoes on as there are other buyers like you who want that deal and they act quickly to secure it.
Aloha, Gina Duncan, R Broker, ABR, e-Pro, SFR
SOLD OVER 100 SHORT SALES/REO LISTINGS ON MAUI.