From Real Estate Taxes to the Staging
Selling a home in Kauai is unlike any other place in the entire United States. From the property taxes you have to pay to ensuring that your Transient Vacation Rental permits transfer over to the new owner of the property if they plan to rent out the home on the likes of Airbnb and VRBO, selling a home in Kauai is a complex process that requires the skilled touch of an experience Kauai real estate professional.
If you decide to go it on your own or hire a new real estate specialist to save a few pennies, you could well end up owing the Kauai government a lot of money in taxes, which should be a thought that keeps you up at night.
Thankfully for you, Anne Eliason—Kauai’s real estate pro—is here to help guide you through some of the biggest pitfalls for selling your home in Kauai.
Selling – Kauai Real Estate Taxes – HARPTA
HARPTA, which stands for Hawaii Real Property Tax Act, is a Hawaiian State law that requires a home seller to withhold 5% of the final sales price. That is 5% of the total price that your home sold for and not 5% of the capital gains on the property. HARPTA only applies to out-of-State home sellers in Kauai. Some of the five-percent can be recouped however. By filing the appropriate form and submitting it to the State’s government, you can get back some of the original 5% that was withheld.
Selling Your Home in Kauai – FIRPTA
FIRPTA stands for the Foreign Investment in Real Property Tax Act. FIRPTA is a federal law that, as of 2016, requires 15% of the sales price of the home to be withheld. FIRPTA only applies to out of country home sellers. By now, you’re probably thinking that this is going to get very expensive if I am a foreign national who is selling a home in Kauai. You would be correct. If you are an out of country resident who is selling a home in Kauai, you’ll have to withhold 20% of the final purchase price for FIRPTA and HARPTA. Just like HARPTA, by filing the correct FIRPTA form, home sellers can recoup some of the percentage that has been withheld. Further reductions for FIRPTA can be gained if the buyer of your property intends to occupy the property as their principal residence.
Selling Kauai Real Estate – Capital Gains
One of the ways that you can minimize your capital gains tax expenditures when selling your property in Kauai is by using your Kauai real estate property as your principal residence for a minimum of two years over the past five years. However, if the home has only been a partial residence over the past five years, you should be notifying the IRS on the sale of your property and paying the appropriate capital gains taxes.
Other Kauai Home Selling Resources
Ask Anne Eliason—Kauai Real Estate Pro—for a Free Home Evaluation: By correctly pricing your Kauai home, you will have a higher chance of receiving competing offers, which can result in you selling your home for a higher price. Anne's free market analysis analyzes the most common home values on the island, meaning you'll receive a thorough and accurate evaluation of your home.
How does a home evaluation help me sell my Kauai home for more money?
A home evaluation that is performed by a skilled REALTOR® allows you to have the correct answers to common home seller questions such as “what is the value of my home in Kauai?” and “how can I increase the value of my home in Kauai before I sell it?”
And as they say, knowing is half the battle.
By setting the target price correctly, your home stands the best chances of selling quickly. A Kauai real estate professional, like Anne Eliason, will help you determine the marketing strategy and price that will help you part with your home.
Use Anne Eliason's Marketing Plan to Sell Your Home: From featuring your home on an already established and popular website to giving your home a facelift, there are many tools in the real estate marketing toolbox that experienced, connected and knowledgeable real estate agents have. For example, when you choose Anne Eliason to be your listing agent, she will leverage her deep pool of contacts in Kauai to ensure your home puts its best look forward and immediately captures the interest of home buyers in Kauai.
See What's on The Kauai Real Estate Market: Whether you plan to move on up the property ladder or just want to scope out your competition use the search tools on our site to help you find the most relevant and timely information.
Connect With Anne: Contact Anne Eliason if you have questions about the market or when you're ready to sell. She'll give maximum exposure to your home and make sure it's sold quickly and for a price that benefits you.
The systems and processes involved in selling your home can be complex, not to mention the fact that the process involves a number of legal conditions, and cost you significant amounts of money and time if not handled correctly.
But, hiring a real estate agent is your guarantee for a less stressful transaction. But it’s important that you be comfortable and confident in her (or his) abilities to get the best deal for you. An ideal agent would be one that has knowledge of the area, understands the state of the current real estate market, and has the organizational skills to ensure that nothing is left on the table and no duty has been missed.
What is included in the listing agreement?
A listing agreement is a binding contract that authorizes your real estate agent to represent you in the sale of your home or property. The contract also creates a framework for later negotiations and the legalities that will follow later on down the selling pipeline.
Common terms and conditions in this agreement include:
- The length of time that the listing agreement is effective
- The listing price for your property and all details or information about your home
- How much your agent’s commission will be
- Financial terms and conditions
- Acceptable terms for negotiations
Fill out the form below for your free Kauai home evaluation:
*Your information will never be shared with any third party.