Selling Real Estate in Hawaii: Process & Costs Explained by SKY REALTY LLC

Are you considering selling your property in Hawaii? Whether it’s your first time or you're a seasoned investor, SKY REALTY LLC is here to support you with reliable, knowledgeable, and client-focused service. Our experienced agents are committed to helping you sell your property smoothly and for the best possible price.

In this article, we’ll guide you through the entire selling process in Hawaii and break down the typical costs involved.

Step 1: Choose a Trusted Listing Agent

The success of your sale largely depends on who represents you.
At SKY REALTY LLC, we assign an agent who is not only experienced but also highly familiar with the area and specific condominium your property may belong to. Our agents use real-time market insights to recommend strategic pricing and marketing approaches to help you sell at top dollar.

In Hawaii, it’s customary to sign with only one listing agent. This is because once your property is listed on the Multiple Listing Service (MLS), it becomes accessible to all licensed real estate professionals and is automatically syndicated to numerous public real estate websites. There is no need to list with multiple agents.

Step 2: Property Evaluation & Strategy

We begin by evaluating your property through a walk-through and by analyzing recent comparable sales and market trends. Based on this assessment, we’ll advise you on a realistic listing price and recommend steps such as repairs or staging if they can improve your sale outcome.

Several factors influence the listing price:

• How quickly you wish to sell
• Current occupancy status
• The visual appeal of the property

Your SKY REALTY LLC agent will offer clear guidance, but ultimately, the decision is yours.

Step 3: Sign the Listing Agreement

The listing agreement used in Honolulu is the “Exclusive Right-To-Sell Listing Contract,” which consists of six pages. This contract outlines the listing duration, cancellation terms, agent commission structure, and other key responsibilities. We'll walk you through every section before asking for your signature.

Step 4: MLS Registration & Listing Exposure

Once signed, your property will be listed on the MLS, which shares your listing with all licensed agents across Oʻahu and publishes it on high-traffic real estate websites including our own SKY REALTY LLC platform.

With a single MLS entry, your property gains extensive online exposure instantly.

Step 5: Marketing & Promotion

Beyond MLS exposure, we actively promote your property to our network of buyers and agents.
We utilize top-performing marketing channels, including our multilingual website, local media, social media, and buyer-targeted email campaigns to maximize visibility.

Step 6: Open Houses & Private Showings

We typically hold Sunday open houses, allowing potential buyers to walk through the property. However, not all condominiums permit open houses, and if tenants are occupying the unit, special arrangements may be necessary.

In addition, private showings are scheduled upon request through buyer agents.
We keep sellers informed about showing activity and feedback, and if necessary, we may suggest adjusting the price based on the market response.

Step 7: Receiving & Negotiating Offers

When an offer comes in (submitted as a 14-page purchase contract), your agent will review all terms with you.
We’ll help you understand the price, contingencies, timelines, and any special conditions. If needed, we’ll draft a counter-offer to reflect your preferences.

Step 8: Escrow Opening & Contract Execution

Once both parties agree and sign the contract, escrow is officially opened.
Escrow is a neutral third-party company that facilitates the transaction, handling deposits, paperwork, legal documentation, and coordinating all steps until the final recording.
SKY REALTY LLC works closely with reputable escrow firms to ensure your transaction proceeds smoothly and transparently.

Step 9: Required Documents, Repairs & Cleaning

As the seller, you’ll be responsible for the following tasks:

• Completing a Disclosure Statement about the property’s condition
• Providing condominium documents (bylaws, meeting minutes, financials, etc.) if applicable
• Arranging for a termite inspection, and treatment if termites are found
• Handling agreed-upon repairs after the buyer’s home inspection
• Professional cleaning and carpet shampooing before the final walkthrough

Step 10: Notarizing the Deed

Before closing, you’ll sign and notarize the Deed, which legally transfers ownership to the buyer.
This can be done in Hawaii, at a notary office in Japan, or at a U.S. embassy/consulate abroad.
Original documents, including keys, must arrive at escrow at least two business days before the scheduled recording date (ideally, five days before).

Step 11: Final Recording & Disbursement

Recording takes place at 8:00 AM (Hawaii time) on the scheduled closing date.
After the recording is confirmed, the buyer’s agent receives the keys.
Net proceeds (after closing costs) are wired to your designated U.S. or international account that same afternoon.

Typical Costs for Sellers

Cost CategoryDetailsAgent Commission – Seller SideApprox. 3% of sale priceAgent Commission – Buyer Side2.5–3% (negotiable after August 17, 2024, due to U.S. regulation changes)Escrow & Closing FeesTypically around 1% of the sale price. Includes:

• Escrow fees (split 50/50)
• Transfer tax
• Title insurance (60% paid by seller)
• Document prep, title search, termite inspection
  Fees may vary depending on sale price.

| Capital Gains Withholding | See below – FIRPTA (Federal) and HARPTA (Hawaii) apply |

Capital Gains Withholding (FIRPTA & HARPTA)

To protect against loss of tax revenue from foreign property owners, the following laws apply:

FIRPTA (Federal Withholding Tax)

If the seller is a non-U.S. resident, 15% of the gross sales price is withheld.
However, the rate may be reduced if the buyer uses the property as a residence:

• 0% if sale price ≤ $300,000
• 10% if $300,001–$1,000,000
• 15% if > $1,000,000

HARPTA (Hawaii Withholding Tax)

If the seller is not a Hawaii resident, 7.25% of the sales price is withheld by the state.

You’ll need to complete specific forms as part of the closing process.
While these taxes are withheld at closing, they are not necessarily your final tax liability. If your actual capital gains tax is lower, you can claim a refund when filing your return the following year.

In cases of no gain or capital loss (e.g., selling at or below purchase price), a full refund is typically available.

In Summary – Why Choose SKY REALTY LLC

Selling real estate in Hawaii involves numerous legal, financial, and logistical steps—but with the right partner, the process can be smooth and successful.
At SKY REALTY LLC, we offer expert guidance tailored to both local and international clients. From preparing your home for sale to final recording and proceeds transfer, we’re with you every step of the way.

If you’re thinking of selling your property in Hawaii, don’t hesitate to reach out.
Your trusted real estate advisor is just one message away.

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