Join me for a walk-through of an unusual opportunity. This home is 90% done, just waiting for finishing touches. Located near the Hanamaulu Beach, it’s tucked away, very private and has gorgeous mountain views. Although you’re literally in Lihue the home feels like a mauka retreat. Not a foreclosure or a short sale.  Owner motivated and welcomes all offers.

• MLS 220433, 4235B Hehi Road,  listed for $399,000
• Agriculturally zoned CPR lot of over 13,000 sq ft surrounded by bamboo, tropicals and views. The house has 1,200 sq ft of living space on both floors with an oversized lanai and the possibility to extend that lanai even further.
• 3 large bedrooms with 2 baths on the 1st floor, an open great room with a full bath on the 2nd floor.
• Both floors have oversized lanais with mountain views.
• Permits are active as owner builder, and can be signed over to a new owner.

• Construction loans are possible.  Contact me for a referral.
• Get your free Market Report using the zip code 96766.  You’ll receive a detailed analysis of active and sold listings in minutes. 

I can’t begin to answer that question. But after one year, I find it curious we don’t see more in the press about the results.

Newsweek.com ran an article with a series of quotes from 2004 to 2009 that is quite interesting – The Financial Meltdown’s Best Quotes.   Of note;

• “If the government is going to get into the bailout business, shouldn’t we also be focusing our resources on the average Americans, the taxpayers, rather than the sophisticated and well compensated Wall Street Bankers…”  Senator Richard Shelby, R-Ala, during a Senate Banking Committee, Sept. 23, 2008
• “If money isn’t loosened up, this sucker could go down.”  President George W. Bush, on the foundering bailout package, Sept. 25, 2008

One year later we find the foreclosure crisis worse nationally than predicted.  Remember the buzz in the media about foreclosures as a personal problem?  Homeowners who got greedy, bought houses they couldn’t afford, etc.  Many people felt like the bailout was going to help irresponsible people, and why should taxpayers bear that brunt. 

• Homeowner Bailout Plan Stirs Ire
• Government Shouldn’t Bail Out Failing Homeowners

That’s a good question.  But a year later, it’s clear that the bailout money has not been directed at stopping foreclosures, and helping the individual taxpayers.  In fact with rising unemployment, foreclosures have spread further into the fixed rate loan market, hitting every segment of the population.

As a short sale specialist, I work with families in the midst of the foreclosure process.  It’s become clear to me there are two realities….

1. Bailout money went to both Wall Street firms and the banks.  Rather than use the funds to do loan modifications, the banks are once again selling mortgages to Wall Street…the same cycle that created our problems.
2. In the meantime, the economy at the “street” level, continues to burn in the wildfires of foreclosure.  The only real solution I see working is short sales, one family at a time. 

A year ago, I wrote an article suggesting that the economy will be best corrected by creating solutions at “main street”, not Wall Street.

Credit Crisis – One Woman’s Solution.  Perhaps I remain like the child in the “Emperor’s New Clothes”, I’m afraid I don’t see the suit – to me he’s just naked.   Working with families in crisis, one year later, I don’t see the bailout solution working on “main street”.

Short sales remain the best working solution to stop foreclosure.  As sad as it may be to give up the dreams of owning a home, it’s so much better to preserve credit and avoid the nightmare foreclosure will bring.

Additional articles of interest:

• Foreclosure Plan Ill Suite for Changing Crisis, WSJ.com
• The U.S. has miles to go with it’s mortgage modification plan.

If you know anyone who is affected by the foreclosure crisis and would like help, please feel free to contact me at www.Call4Susie.com.

And the drumroll please …. featured here are the top 5 biggest price reductions in the Kauai real estate market this week. 

The top 4 are NOT foreclosures or short sales.  The last one is subject to court confirmation:

1. Reduced $244,000.  MLS 218919. Listed now at $695,000. Agriculturally zoned CPR. 4 bd / 3 ba home on an acre. Lindahl cedar home, located 6 minutes to Poipu. Total of 2,433 sq ft of living space including in-law quarters.  Built in 2004.  All Photos
   
2. Reduced $105,000.  MLS 219120.  Listed now at $995,000.   Poipu Ocean front condo, with Owner Financing Available!  2 bd / 2 ba with 1,083 sq ft living area. Poipu Makai #E2.  All Photos.
   
3. Reduced $100,500. MLS 198645.  Listed now at $1,998,500.  7 acre lot in Kealia Makai oceanfront subdivision on the east side.  Originally price was $500,000 more, on the market for 806 days – seller says bring an offer!  All Photos. 
   
4. Reduced $100,000.  MLS 211754.  Now listed at $699,000.  3 bd / 3 ba home with 1,766 sq ft living space on almost 1/2 acre.  Sweeping views of Mt. Waialeale.  All Photos.
   
5. Reduced $100,000. MLS 220509.  Currently listed at $1,279,000.   Aliomanu Estates two-story home on 4.36 acres.  3 bd / 2.5 ba home with 1,732 sq ft living space. Subject to Court confirmation.  All Photos.
   

Just because there’s a big price drop, doesn’t mean that’s automatically a great value.  In my opinion, some of these do offer good opportunities.  But as a case in point, check out my new listing (MLS 228054) this week and compare it to #5:

• Almost identical price – $1,297,000
• Near Aliomanu Estates
• Whitewater Ocean Views through the home
• Gorgeous Mountain Views
• 2+ acre lot
• Almost double the living area
• Built in 2007
• All Photos
• Virtual Tour

What’s my point?  Well, although watching price drops is a good way to find opportunities. It’s critical to work with a dedicated buyers agent who can provide you market analysis to see where the “values” are.  Does the price drop mean the seller is chasing the market down? Or is it really a deal now? 

• MarketReportbySusie.com - Subscribe for your own Kauai Market Analysis Report, delivered regularly to your email.
• KauaiEastsideLuxury.com – Gallery of Kauai luxury listings on the East Side
• KauaiLuxuryForeclosures.com – Gallery of Kauai luxury short sales and foreclosures listings.

Okay, you think I must be crazy – a Realtor telling you not to buy???  Don’t get me wrong, I love working with buyers!  It’s an honor and privilege to help people pursue and fulfill their Kauai real estate dreams.

Working with buyers, we twist and turn the market data, their short-term and long-term goals, just like a Rubix cube.  Sometimes, it’s not an automatic fit, but if we keep twisting and turning – we find that right property that fits their family’s goals.

However, there are some goals that don’t fit with the Kauai market – here’s my top 3 reasons not to buy real estate on Kauai:

1. Cash Flow.  Kauai offers a fascinating variety of properties, and lifestyle choices.  However, if your goal is to utilize the “down” market to create passive income with rental properties – this isn’t the place.  Although a few lower priced condo offerings are coming closer to being able to “cash flow”, your expectation should be only to cover some of your costs. 
2. Short Term Gains.  Many sellers are holding onto the idea of when the “market will return”.   None of us can predict what will happen with the market.  We do know that we are bouncing along the bottom.  The buyers I’ve been working with during the past two years have all identified opportunities that presented a good value in their eyes, realized the market value may continue to fluctuate, but feel the property will gain in value over time based on traditional real estate statistics –  not recent “bubble” gains.
3. Short-term Flipping.  There are hard money investors who are successfully buying distressed homes and doing option contracts, selling them at the same time for a short term profit (simultaneous A to B, and B to C  contracts).  I’m not saying that it is impossible on Kauai to do this, but buyer demand has been primarily for the bottom values.   I would love to be proven wrong on this

For more information, check out the following links:

• How to Use a Buyers Agent
• Search ALL Kauai Real Estate

What are your reasons to buy, or not to buy, real estate on Kauai?  Add your thoughts here, or connect at:

• Facebook.com/SusannaKunkel
• Twitter.com/Susie4Kauai
• YouTube.com/Susie4Kauai

Watching CNN cover the “Beer Summit” in Washington today made me chuckle.  You could see the announcer’s confusion and discomfort…like they wanted to say “huh?”   

Beer Summit at White House

What made me chuckle is that President Obama is applying “island style” diplomacy at his new home – The White House.

I can’t tell you how many “meetings” I’ve had with clients at the picnic table,  in the garage, or on the lanai.  Most people have a stack of plastic chairs in their garage.  Entertaining is done with beers, good food and a little music- outside, either at home or at the beach park.

Mr. "Wala'au"

Politics, local style, involves relaxing and connecting…often outside over a beer.  I used to live down the street from local celebrity Dickie Chang who is now on the Kauai County Council, and many “meetings” and fundraisers were outside his home with beer, food, music and laughter.

Dicki is known as Mr. Wala’au..another word for “talk story.”  His local TV show is a favorite of residents and visitors alike. 

Wala’au in Hawaiian means to communicate, someone who likes to talk.  For a musical explanation of Wala’au, here’s a video of two instruments “talking story” Hawaiian style.

I’m glad to see President Obama approach this difficult situation with his “island roots”…bringing people together.

Join me here for some local style music…bring your own drinks and pupu’s (appetizers). Listen to Bruddah Iz and then let me know if all this tension and hate really makes any sense…let’s “wala’au”…add your comments below or let’s talk story at:

• Facebook.com/SusannaKunkel
• Twitter.com/Susie4Kauai
• YouTube.com/Susie4Kauai

Kauai luxury real estate market continues to have a wide variety of offerings.  This week’s feature - two homes offering both pools and ocean views…. 
Two most dramatic price reductions this month:

1) Hale Mahina, designed by renown architect Gary Tobey.  4 bd / 4.5 ba of expansive indoor / outdoor living areas comprising a total of 4,934 sq ft living space on 4.58 acres. Originally listed for $8,300,000.  Today’s price reduction of $1.2M puts the list price at $5,900,000. 

Hale Mahina in Aliomanu Estates

 2) Bali Hai and Ocean views in Princeville - 5289 Pokii Lane.
Open elegance with 4 bd /4 ba in 3,510 sq ft living space on almost 1/2 acre.  Originally listed for $2,695,000, this month’s reduction of $400K puts the list price at $2,295,000.

Princeville Bali Hai Views

• Facebook.com/SusannaKunkel
• Twitter.com/Susie4Kauai
• YouTube.com/Susie4Kauai

Kauai and horses go together…since plantation times. 

In his book Kauai: the Separate Kingdom,  Edward Josting tracks the history of ranching on Kauai….”in the early 1800’s there were no fences and horses and cattle ran wild.  Later in the mid 1800’s, stone walls and fences were created and branding started being registered in 1848. Horses continued to play a vital role in plantation economics.”

Koloa Plantation Days 2009, from July 18-26 celebrates the Paniolo and plantation history on Kauai.  Join the Parade this Saturday the 25th in Old Koloa Town. You’ll be amazed at the gorgeous leis adorning both the horses and riders.

Koloa Plantation Days Parade

For horse lovers, it’s difficult to find equestrian properties online.  I can set up customized email listing alerts for you -  Contact Me.

Below you’ll find my Top 3 favorite Kauai horse properties:

1. 6345 Kalama Rd – 5 bd / 4 ba on 3.01 acres – $985,000
   Located in the Wailua Homesteads on the Eastside, where Hawaiian Royalty rode the trails and visited the Heiau’s (temples)
   * MLS Listing Details
   * Visual Tour
   * Photos
   * Map
2. 4351 Kahili Makai #4  – 4 bd / 3 ba on 3.32 ac – $1,250,000
   Located in the desirable Kahili Makai subdivision on the North Shore (between Kilauea and Princeville).  Luxurious details in the custom built home.  Open property with both ocean and mountain views.  Agricultural zoning, and fenced area perfect for your horses.
   * MLS Details
   * Visual Tour
   * Photos
3. 4677 Kahiliholo Rd – 4 bd / 3 ba on 7.99 ac – $2,300,000
   Located in the very desirable Kalihiwai Ridge area north of Kilauea.  The property offers open, expansive area that would be perfect for horses.  Agricultural zoning allows for barns & other ag structures.
   * MLS Listing Details
   * Photos
   * Map

For more information on Kauai properties, www.Susanna4Kauai.com

In a recent Washington Post article, Repairs Within Reach, Mara Lee highlights how using an FHA 203(k) loan allowed a couple to finance the purchase and repairs of a badly damaged  foreclosed townhome.

The article goes on to tell of how they ran into extensive delays, problems with the appraisal, etc.  On Kauai we don’t have as many REO listings with extensive damage.  But some, such as this Kalaheo REO listing have incomplete work..aka, remodel in process at time of foreclosure.

For more articles on foreclosures and short sales – www.Delicious.com/Susanna4Kauai

REO single family CPR property in Kalaheo is Back on the Market, after being “under contract” since May.   Great handyman special.

4836A Puuwai Road, Kalaheo – 2 bd / 1 ba, 832 sq ft on 11,842 sq ft lot

Email me for CPR Map

Other Kalaheo REO and Pre-Foreclosure Short Sale Listings:

• Oceanview lot in Kakela Makai Subdivision – Milia St  - $184,900
• 4685 Kuli Road CPR Lot – 20,038 sq ft – $339,000
• Puu Road 2 bd / 1.5 ba home on 2,080 sq ft lot - $299,000
• 3730 Elau Rd – 3 bd /1 ba home on 7,940 sq ft lot – $375,000
• 4063 Oni Place – 3 bd / 2 ba home on 7,678 sq ft lot – $499,000
• 5103 Puuwai Road - 3 bd / 3 ba luxury home with views – $795,000

Kauai REO listings this week brought two new condo listings…both in resort communities.  Nihilani is located in the heart of  Princeville and Banyan Harbor is across the street from Kalapaki Bay and close to restaurants.  Both are in Visitor Destination Areas and vacation rentals are possible.
Email me for a site map of either property.

Nihilani 3 Bedroom End Unit - Princeville

1.  Nihilani at Princeville #14A, 3 bd / 3 ba, 1,874 sq ft - $489,900

• Nihilani at Princeville development information
• Anini Beach nearby

Banyan Harbor Pool with Ocean views

2.  Banyan Harbor #G80, 2 bd/ 2 ba, 840 sq ft – $250,000

• Kalapaki Bay Beach Information
• Lihue Restaurant Guide

How important is Visitor Destination Area (VDA) zoning to you when buying an REO condo or townhome?