Hawaii Real Estate FAQ
Answers for Buyers, Sellers, and Local Market QuirksWhether you’re buying your first condo, selling a beachside retreat, or just curious about Hawaii’s unique market, here are the questions we get most often. As your local experts, Team Lally promises straight answers with no sugarcoating (except maybe for malasadas).
For Home Buyers
Q: What’s the difference between Fee Simple and Leasehold in Hawaii?
A: Fee Simple means you own the home and the land—forever. Leasehold means you own the home but lease the land for a set number of years. Always check the lease terms before falling in love with the view!
Q: Are short-term rentals (like Airbnb) allowed?
A: It depends on zoning and local laws. Honolulu has strict regulations, so don’t assume you can rent it out to tourists unless it’s specifically zoned for that. We’ll help you verify before you buy.
Q: How do property taxes work here?
A: On Oʻahu, the tax year runs July 1–June 30. Payments are due August 20 and February 20. Assessed values are set as of October 1, but assessed value ≠ market value. (Yes, it confuses everyone at first!)
Q: Is this home in a flood, tsunami, or lava zone?
A: Great question—Hawaii has unique risk maps for natural hazards. We’ll check flood zones, lava zones, and sea-level rise predictions so you know what you’re buying into.
Q: What salary or credit score do I need to buy a home in Hawaii?
A: Median home prices hover around $800K+, so most buyers need strong income (roughly $175K+) to qualify. Conventional loans usually need a 620+ credit score, VA loans can be 0% down, and FHA loans allow lower scores with bigger down payments.
Q: How long does it take to close on a home?
A: Most financed purchases take 30–45 days. Cash buyers can close in as little as 10 days—basically faster than your poke order.
For Home Sellers
Q: What costs should I expect when selling?
A: Sellers typically cover half of escrow fees, termite inspection, surveys, and commissions. Staging and repairs may add costs, but often pay off in higher offers.
Q: Do I have to pay the buyer’s agent commission?
A: With recent rule changes, it’s now optional. That said, offering a buyer’s agent commission can attract more buyers and stronger offers. We’ll strategize what makes sense for your property.
Q: Can I sell my home without an agent (FSBO)?
A: Sure, but it’s like surfing Pipeline without lessons—it’s possible, but risky. Most FSBO homes sell for less and take longer. Team Lally can help maximize exposure and profit.
Q: What is “Days on Market” (DOM) and why does it matter?
A: DOM shows how long your property’s been listed. A low DOM makes buyers think “hot property.” A high DOM can make buyers wonder if something’s wrong. Correct pricing + great marketing = low DOM.
Q: Should I fix things before selling, or sell as-is?
A: It depends. Small fixes (paint, decluttering, minor repairs) usually boost value. Bigger issues (roof, plumbing) can be negotiated—but we’ll help you weigh cost vs return.
Q: Do sellers need to pay for termite treatment?
A: Yes, typically the seller pays for termite treatment if live termites are found during the inspection. Most lenders require a clear inspection report and will not finance a home with active termites.
Q: Should I stage my home before putting it on the market?
A: Yes, we highly recommend it. Staged homes in Hawaii typically sell faster and for more money. Our basic recommendations are to clean, declutter, and de-personalize. We also offer light and virtual staging if you list with us.
Q: Do buyers prefer a credit or the actual repair done during the sale?
A: Buyers generally prefer a credit. As a seller, offering a credit is often better because it avoids opening a “can of worms” with unexpected issues that can arise during escrow repairs. A credit allows you to close escrow and be done with the transaction cleanly.
General Hawaii Real Estate Questions
Q: Do I need a local agent, or can I use someone from the mainland?
A: Always work with a local expert. Hawaii has unique property types, laws, and zoning quirks that mainland agents may not know. We live and breathe this market—and we’ve got the aloha spirit to match.
Q: What makes Hawaii’s real estate market unique?
A: Limited land, high demand, military presence, strong tourism, and leasehold properties make it unlike anywhere else. Add in sunshine and surf, and you’ve got a one-of-a-kind market!
Still have questions? Reach out anytime—we love talking story about real estate!
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