Sell house in Hawaii - how to prepare property for selling

If you’re considering selling a house in Hawaii without a realtor, it’s helpful to consider the advantages and disadvantages. Selling without a realtor may be the best option especially if this is your first time selling a home in Hawaii. By not paying a listing agent’s commission, you stand to save an average of $21,741.

In reality, FSBO homes usually sell for 11% lower than homes listed with agents. While this could impact your overall final sale price, many sellers could still save thousands by going this route.

There’s a lot to take care of when you plan on managing the sale yourself. Here's a quick list of what you'll need to manage: pricing your home correctly, marketing it effectively, and negotiating with potential buyers.

Pricing needs to be a bit of work. Although a realtor’s Comparative Market Analysis (CMA) provides accuracy, FSBO numbers may be off. Marketing is more than just an “I’m for sale” sign. You’ll need to use all online tools and social media to cast the widest net possible to attract buyers.

For instance, listing your property on the MLS through a flat fee service can cost between $250 to $3,000, but it increases visibility for agents and buyers. The average cost of hiring a professional real estate photographer in Hawaii is $194, according to Thumbtack.com. That investment yields clear dividends in the form of incredible, professional-grade photography.

Proper legal paperwork and disclosures are essential to a successful sale. Sadly, one-third of recent FSBO sellers admitted to making legal errors due to the absence of a realtor’s advice. Having all the right documents in order is the most important step.

On closing day, you will receive your final payment either through wire transfer or check — at which point the process is complete! Moving forward with an FSBO sale requires a willingness to tackle all of these, but with preparation, the process can be a fulfilling one.

When it comes time to sell your house in Hawaii, there are many financial considerations that require close attention and consideration.

Consider the costs of selling your home. First, it’s important to know how much all selling expenses will be. Real estate agent commissions, typically 5%-6% of the sale price, can be a healthy bit of expense. Closing costs can be quite significant. They typically run between 1% and 3% of the sale price and cover costs such as title insurance, escrow fees, and recording fees.

Second, look at the capital gains tax you’ll owe. If your home has increased significantly in value, you may have to pay capital gains tax on the difference. At the state level, Hawaii has a state capital gains tax of 7.25%.

The primary residence exclusion allows you to exclude up to $250,000 of capital gains from your taxable income. If you are married and filing jointly, you can exclude up to $500,000, as long as you both meet the ownership and use tests.

For those selling investment properties, a 1031 exchange lets you defer capital gains taxes by reinvesting in a similar property within 180 days.

When considering your selling options, consider different scenarios such as selling the home FSBO (For Sale By Owner) vs selling with a realtor. A simple table can illustrate these situations side by side, highlighting the scenarios’ impacts on a seller’s net profit once commissions and other expenses have been deducted.

An FSBO will save the commission fee, but you may miss out on the expertise a realtor can provide, including more competitive offers.

Lastly, take a hard look at how home repairs and improvements will affect your bottom line. Though investing in repairs raises the value of your home, weigh the cost of repairs against the return you’re likely to see.

Certain upgrades simply don’t return value commensurate with their cost. Focus on updates that improve buyer interest and raise marketability.

Preparing your Hawaii home for sale the right way can be the difference between a timely, profitable sale and a long, drawn-out process. Begin with a complete home inspection to identify any repairs or updates. This proactive approach goes a long way in showing you’re on top of issues that might otherwise scare away serious buyers.

Replace any missing roof shingles and paint with a clean coat of neutral paint—it’ll make a world of difference in your home’s appearance. Replacing light fixtures will do wonders too! To make a bigger impact, invest in higher-cost renovations like a new HVAC system or an updated kitchen. Although major renovations can run an average of $63,446, these renovations are usually worth the expense with an increased sale price.

We all know that first impressions count. Make basic improvements like adding some landscaping to boost curb appeal or power washing the exterior of the home. On show day, open all curtains to let in Hawaii's natural light, and turn on lights, fans, and air conditioning to create a welcoming atmosphere.

Decluttering is important, too, since it helps rooms look bigger and more welcoming. It’s amazing how fast things can add up after a few years. Removing the clutter helps potential buyers more easily picture themselves living in the home.

Staging your home is a great tool to have in your arsenal. Develop a home selling checklist to ensure you’re shining the spotlight on each room’s most attractive features. Things as easy as placing fresh flowers or making the dining room table can help rooms feel more inviting.

Virtual staging adds warmth and character to vacant homes. It provides them with a furnished appearance that appeals to buyers, all without the expensive cost of actual furniture.

Finally, hiring a pro photographer can really help your home stand out in the crowded digital marketplace. Professional photography showcases your home in the best possible light, attracting more attention and interest and selling your home faster.

In Hawaii, homes can move very quickly, even with modest improvements, so preparing your home ahead of time is a smart plan.

Selling your home in Hawaii without a realtor—called For Sale By Owner or FSBO—has definite advantages. The biggest pro is the commission savings, which could leave thousands of dollars in your pocket. Control is another significant benefit; you have complete control over the sale—you set the price, you determine the terms, you negotiate.

Additionally, an estimated 57% of FSBO sellers already know their buyer—which makes things much easier. However, it hasn’t been all roses. Perhaps the most daunting task is figuring out how to price the home. What’s more, a National Association of Realtors survey of home sales found that FSBO sellers made an average of 23% less than similar homes sold by agents.

This gap points to the challenge of pricing without professional guidance. Additionally, selling FSBO requires a significant time investment. You control the process from marketing to showings and that’s a lot to juggle. Without proper pricing information, you risk losing out on potential buyers or selling your home for less than it’s worth.

In fact, according to recent surveys, homes sold using a realtor can sell for an average of 33% more profit than FSBO homes. To get the best possible deal, it’s essential to understand Hawaii’s unique real estate market. Legal knowledge is a key consideration. An alarming 36% of FSBO sellers admitted they made legal missteps, proving just how complicated real estate transactions can be.

Hawaii’s rules mandate that FSBO sellers fill out a seller’s disclosure form. Not adhering to these legal requirements can result in expensive mistakes. It can be nice to have an option to look at alternatives such as Hawaii cash home buyers. They provide a quick cash sale, which helps you avoid the FSBO route.

Instead of complicated listing and negotiations, you get paid directly. This choice best fits sellers who prefer a fast, easy sale without the complications of FSBO.

Considering other options beyond For Sale By Owner (FSBO) can open up a world of opportunities when selling your home in Hawaii. One alternative is going through a flat-fee MLS service. This step gives you the ability to list your property on the Multiple Listing Service (MLS). You’re in control of the whole sales experience.

It works for people who want to get into the weeds of how to sell. Partner with a local Hawaii state licensed flat-fee MLS broker to get your home listed. Or you can make it available to buyer’s agent commissions while still giving yourself the right to sell it on FSBO.

Additionally, you could consider partnering with a local real estate investor to sell your property in cash quickly. This approach bypasses the need for traditional marketing, offering a faster and easier option to sell. It’s most attractive when you have urgency and want to keep things simple.

Even if the sale price ends up being less than the market average, the convenience is hard to beat. Partnering with a knowledgeable real estate agent to help you buy or sell a property is another option worth considering. Unlike Hawaii flat fee MLS listings, Hawaii discount real estate brokers are full-service professionals.

They reduce listing commissions, resulting in a faster, easier process and more profit in your pocket. In fact, according to a Clever Real Estate survey, homes sold with a realtor sold for an average of 33% more than FSBOs. FSBOs sell for an average of 11% lower than realtor-listed homes.

Not to mention, 36% of sellers find themselves committing legal mistakes, showcasing how essential a realtor’s guidance is to the process. Online real estate platforms offer another viable alternative, streamlining the sales process without the need for comprehensive realtor services.

These platforms can make the process a lot easier, providing tools for marketing and negotiation while you save on commission costs. By not paying a listing agent’s commission, sellers can save an average of 2.57% on closing costs. This option helps to make it an attractive option for sellers looking to minimize costs.

If you want to sell your home quickly in Hawaii, you’ll need to price it competitively. With the help of a comparative market analysis (CMA), you’ll be able to choose a listing price that is in line with the current market conditions. This approach will guarantee that you are not trying to sell your place for too much or too little.

It’s just as smart to schedule a home inspection before listing your home to identify any problems that could derail a sale.

Marketing strategies are key to selling your home in a timely manner. Meet your Hawaii home sale needs with the right strategies. Today’s top strategies are still tried-and-true ones open houses, for example.

Web-based listings on sites such as Zillow, Realtor.com and others are becoming essential too, bringing your property to a national audience in mere seconds. If you use a Flat Fee MLS service like Houzeo, you’ll save on the average 3% listing agent commission. This enhancement can have a dramatic effect on your profit margins.

Yard signs are not to be overlooked, as 48% of buyers find their new home through this method.

Enhancing curb appeal is an important step. Look to native Hawaiian plants for easy-care landscaping. A new coat of paint and new exterior lighting fixtures are a great way to boost your home’s curb appeal.

These exterior improvements paint a warm and inviting first impression, drawing in curiosity from foot traffic and online users.

Being flexible with showings and negotiations is the name of the game when selling in Hawaii. Being flexible with potential buyers’ schedules can help attract more offers.

There are great advantages to working with a local agent. They know what the current market is like and will be able to more effectively help you navigate negotiations.

To have the smoothest process possible, start making plans sooner rather than later. Tax implications like the Hawaii Real Estate Property Tax Act (HARPTA) are important to know too.

Keep in mind that you only pay 7.25% on the appreciation of the property, not the sale amount.