Selling a Kona Home From the Mainland: A Step by Step Guide

Oct 19

5 min read

Updated: 3 days ago

Many Kona homeowners live on the mainland, and most of them can sell without flying to Hawaiʻi at all. The process works when the listing agent handles the on island work and the seller understands the few things that differ in Hawaiʻi. Maile Woodhall of Kona Organic Real Estate is a Kona born listing agent who regularly represents sellers who live out of state. This guide walks through the process from first call to closing.

Step 1: Get a written pricing analysis and net sheet

The first step is knowing what the home is likely to sell for and what the seller will net. Maile Woodhall prepares a written pricing analysis built from recent Kona sales and current listings, then a net sheet that subtracts the Hawaiʻi conveyance tax, escrow and title fees, agent compensation as agreed, prorated property taxes and association dues, loan payoff, and any withholding. Off island sellers should see that last item early, because it changes how much cash arrives at closing.

Step 2: Plan for HARPTA withholding

Under the Hawaiʻi Real Property Tax Act, known as HARPTA, escrow withholds 7.25 percent of the sale price when the seller is not a Hawaiʻi resident and sends it to the State as a prepayment toward capital gains tax. It is not the final tax. A seller can file for a refund of any amount above the actual tax owed, and in some cases can apply to reduce the withholding before closing. Sellers who are not U.S. persons face a second federal withholding under FIRPTA, generally 15 percent. A tax professional should be involved early in either case.

Step 3: Decide what to do with the contents

Furnished sales are common in Kona, especially for condos and second homes. Selling the home turnkey, with furniture and housewares included, is attractive to many buyers and spares the seller the cost of shipping or clearing the home from a distance. Anything the seller wants to keep should be removed before photos. Maile Woodhall can arrange local movers, estate sale services, or donation pickup for sellers who cannot be on island.

Step 4: Prepare the home without being there

Preparation in Kona usually means servicing the air conditioning and any pool equipment, cleaning screens and windows, refreshing landscaping, deep cleaning, and repairing anything the salt air has worn. A pre listing inspection and a termite inspection find problems while there is still time to fix them or price for them. Maile Woodhall coordinates the work through trusted local vendors, reviews bids with the seller, and sends photos when the work is done.

If the home has a tenant or is in a vacation rental program, the lease or program agreement determines showing access and timing, and the seller should decide early whether the home sells with the rental in place.

Step 5: Photos, video, and the listing

Professional photos and video are shot when the light favors the home. The listing goes on the MLS and the major home search sites, and through the eXp Realty network it reaches agents across the United States and abroad, which matters because most Kona buyers also live elsewhere. Maile Woodhall sends each seller a weekly update with online views, saves, showings, and feedback, so the seller always knows where the listing stands.

Step 6: Showings and offers from a distance

Showings are handled on island with a lockbox or by appointment, and the seller is never required to be present. Offers arrive electronically. Hawaiʻi uses a standard purchase contract, and Maile Woodhall reviews each offer with the seller by phone or video, including price, financing, contingencies, timing, and the buyer's intended use, which affects the conveyance tax rate.

Step 7: Disclosures and the title report

Hawaiʻi requires the seller to complete a written disclosure statement about the property's condition and history. Off island sellers complete it electronically with the agent's guidance. Escrow orders a preliminary title report, and any issues, such as an old lien, a trust that needs documentation, or a company owner with incomplete records, are resolved before closing. Maile Woodhall has handled these clearances directly for sellers who could not be on island.

Step 8: Inspections and the buyer's review period

After the offer is accepted, the buyer has a set period to inspect the home, review the title report and disclosures, and review condo or association documents if they apply. Inspections are scheduled by the buyer's side and attended by the listing agent. If the buyer asks for repairs or a credit, Maile Woodhall negotiates it with the seller by phone and arranges any agreed work locally.

Step 9: Closing without a trip to Hawaiʻi

Closing documents are signed in front of a notary wherever the seller lives, and escrow arranges the signing. Funds are wired to the seller's account after recording. A typical Kona sale takes about 30 to 60 days from accepted offer to closing, and cash sales can close sooner. The seller's only on island task is to make sure keys, remotes, and manuals are left for the buyer, which the listing agent can handle.

Common questions

Do I have to be in Hawaiʻi to sell my Kona home?

No. A listing agent can manage preparation, photos, showings, inspections, and repairs on island, and closing documents can be signed with a notary where the seller lives.

How much does HARPTA withhold from an out of state seller?

HARPTA withholding is 7.25 percent of the sale price for sellers who are not Hawaiʻi residents. It is a prepayment toward capital gains tax, and the seller can file for a refund of any excess.

Should I sell my Kona home furnished?

Many Kona condos and second homes sell turnkey, and buyers often prefer it. It also saves an off island seller the cost of shipping or clearing the home from a distance.

Who can help me sell a Kona home from the mainland?

Maile Woodhall of Kona Organic Real Estate is a Kona born listing agent who regularly represents out of state sellers and handles the on island work from preparation through closing.

About the author: Maile Woodhall (pronounced Miley) is a licensed Hawaiʻi REALTOR (RS-88019) with The Agency Team Hawaii, eXp Realty (RB-21841), born and raised in Kona. Questions? Call or text (808) 482-5800.

Sources: Hawaiʻi Department of Taxation, HARPTA Form N-289; Internal Revenue Service, FIRPTA withholding. This article is general information, not tax or legal advice.