Seller Questions:
How do I make my property more marketable?
Once we accept
an offer and we open escrow, how long before we close?
Is a survey necessary?
How do I calculate closing costs?
If I have a tenant when do I have to tell them the house is
sold?
Please define HARPTA & FIRPTA?
Seller Answers:
How do I
make my property more marketable?
When a property is well-maintained and is kept clean, a Buyer will find it more attractive and it brings the best price.
Your agent will be able to help you identify specific issues
that should be taken care of before you put your property on the market.
In the meantime, there are some very simple basic things you
can do to help get a better price for your property. Start
by looking at your property through a Buyer's eyes: remove unnecessary clutter and stored items,
spruce up the front entry, get the lawn mowed and the landscaping in good shape, and re-paint
where needed. This will make a prospective Buyer's first impression
a positive one. We have some really good suggestions under the Seller's menu, click on "Increase the Value of your Home" to view them.
If you are unable to take on the expense of major
repairs prior to listing your property, the reality is, that you’ll
receive a somewhat lower price and you should
adjust your asking price accordingly. But that isn't necessarily going to hurt you. Some Buyers look specifically
for properties where they can do the repairs and fixing-up
themselves, rather than paying top dollar so don't be discouraged
if you can't do everything you'd like to bring the property
to mint condition. Your Buyer may be looking for exactly
what you have to offer.
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Once we accept
an offer and we open escrow, how long before we close?
There really is no such thing as a "normal" escrow. Closing is usually around 45 and 60 days. Each property
and each sale are unique. If there are time-consuming conditions
to the contract, it will take that much longer to close and
record the transaction. For example: the loan process for Buyers
may take longer than 60 days; appraisers, surveyors
or fumigation companies may be backed up and unable to complete
their job in the time allotted. We recommend that you discuss
this matter with your broker when you are considering offers
from Buyers, especially if "time is of the essence" and
you must meet deadlines of your own outside of escrow, such
as relocating or purchasing another property.
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Is a survey necessary?
Surveys are a standard part of every real estate sale. They
protect the Buyer's interest by defining the exact position
and size of the property they are buying and assuring them
that there are no encroachments or boundary problems. The
survey is conducted early so that, should problems arise,
they can be resolved in a timely manner and not unnecessarily
delay the close of escrow.
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How do I calculate closing costs?
A good rule of thumb is 2% of the purchase price. The items
usually paid by the Buyer and by the Seller are listed in
the standard terms of the sales contract.
Additional items may be negotiated as special terms of the
contract. Individual situations can differ substantially, depending
upon variables such as the level of market activity, the condition
of your property and your motivation to sell. Your agent will
give you a fairly close estimate and will work to make sure
you are paying a fair price for the services provided.
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If I have a tenant, when do I have to tell them the house
is sold?
If your tenant is on a month-to-month lease, you are required
by the Hawaii Landlord Tenant Code to give 45 days' notice
to vacate. Once notice is given, the tenant may vacate at any
time prior to the 45th day, without penalty. Therefore, you'll
want to time your Notice to Vacate carefully or you may find
yourself missing the rental income you had expected. This gets
especially tricky when closing is delayed and the property
is sitting vacant.
If your tenants occupy the property under a fixed lease, the
lease expires on the date specified, regardless of who owns
the property. A fixed lease survives escrow and the Buyer of
your property must honor the terms of the lease until it expires.
Clearly this is a fact that requires early and full disclosure
to prospective Buyers.
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Please define FIRPTA and the HARPTA tax?
FIRPTA (Foreign Investment in Real Property Tax) and HARPTA
(Hawaii Real Property Tax Act) relate to tax payments due
from Sellers who are not residents of the United States or
of Hawaii, respectively.
FIRPTA "requires that if the Seller
is a foreign person, the Buyer must withhold 10% of the amount
realized by the Seller to cover any Seller tax liability.
Residences below $300,000 that are going to be occupied by
the Buyer are exempt from this provision."
HARPTA "requires every Buyer of
Hawaii real property to deduct and withhold from the non-resident
Seller's proceeds, 5% of the gross amount realized on the
sale to be applied to any Hawaii income tax due from the
Seller with regards to the sale of the property. A Buyer
would be exempted from this requirement if the Seller furnishes
the Buyer with an affidavit stating that the Seller is a
resident (includes resident aliens), together with his taxpayers
identification number. Because of the strict deadlines and
penalties associated with these laws, your agent and your
escrow company will make sure you are fully compliant.
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