Closing Costs in Hawaii: A Guide for Sellers
Selling your home in Hawaii? When finalizing your sale, there are a few financial details to keep in mind—especially closing costs. Closing costs encompass the various fees and expenses sellers are responsible for when transferring property ownership. These might include taxes, agent commissions, and other service charges tied to the transaction.
In this quick guide, we’ll explore the essentials of closing costs in Hawaii, shedding light on what you can expect as a seller. Whether it’s accounting for property taxes or handling additional fees, our overview will help you prepare for the financial steps involved in selling your home in Hawaii.
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are the various expenses required to sell your property. These charges can cover a broad spectrum, including items such as property taxes and insurance; many are typical for both buyers and sellers. However, some costs, like transfer taxes, will differ based on your home’s location at the time of sale.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to settle your loan payoff amount— the remaining balance on your mortgage. This includes the principal you still owe and any interest that has accrued over time. Additionally, there may be other fees associated with finalizing the terms of your loan.
Clearing this payoff amount is a necessary step in selling your home, as it ensures the lender releases the lien on your property, allowing the sale to move forward without any financial holds.
Property taxes
According to WalletHub, Hawaii ranks 1st in the country in terms of property taxes, placing it above states like Alabama and Colorado.
Real estate in Hawaii is taxed at a rate of 0.27%, with a median home value of $1,061,875. To get a better idea of what you might owe, consult a property tax calculator.
