More and more we are seeing people, our buying clients and others, talking about foreclosures and short sales as where they wish to focus. There seems to be a belief that foreclosures and their siblings short sales represent the best values. But it simply isn't necessarily true anywhere and it certainly isn't driving things on Maui. Here are some reasons why:

• The value proposition in a specific property is driven by the desires of the owner. Foreclosures speak to their financial condition, NOT the value proposition. It is entirely possible that the best deal is a property without a mortgage. But if you limit yourself to foreclosures? You'll never see it. Now is it possible the best value is a foreclosure? Yes. But never simply because it is a foreclosure.
• When dealing with an owner/seller one can quickly determine if a deal can be made. You can make your investment decision on your time frame, with the facts at hand now. You can drive the process. In dealing with overwhelmed large institutions? Their bureaucratic requirements drive timing etc. While you are waiting on them? A new deal could pass you by or the deal you want can be snatched away at any time.
• Unlike parts of California, in South Maui and along the Maui Oceanfront, there simply are not enough troubled situations to drive the marketplace. So by limiting one's self that way, a buyer is going to see a tiny sliver of the market when they have the ability to drive transactions much more broadly.

To discuss these issue further, contact us!