Diamond Head home sold before auction opens
A rare vacant oceanfront lot in Diamond Head had languished on Oahu's slowing real estate market for two and a half years until the owner finally put it up for auction.
That got results, but not quite in the way expected.
"We were looking forward to holding the auction, but late Thursday, the buyer made an offer that the seller thought was too good to pass up," said Stephen Cipres, the property's listing agent and co-founder of Elite Pacific Properties.
Elite Pacific, a real estate brokerage firm specializing in upscale properties and real estate auctions, had been slated to put the 14,146-square-foot lot at 3147 Diamond Head Road on the block Saturday.
But pre-auction marketing apparently made the auction itself unnecessary.
"We received hundreds of inquires from potential local, domestic and international buyers," said Paul Mayer, co-founder of Elite Pacific Properties. "With all of that interest, the buyer decided that he couldn't sit on the fence any longer."
The property, which was originally listed for $4.79 million prior to auction, sold for an undisclosed price to an Oahu buyer who had expressed interest in the property for some time, Mayer said. The deal is set to close on June 2, he said.
Although auctions are still relatively rare in the Hawaii market, Mayer said that they offer advantages for both buyers and sellers. At an auction, buyers typically are able to purchase properties below asking price, he said. On the other hand, sellers benefit by being able to move their properties more rapidly, Mayer said.
"Generally sellers are trading time for money," he said.