15 TOP BUYERS & SELLERS Q & A

Oahu's market remains competitive with limited inventory driving steady appreciation. Median home prices vary significantly by area—from $650K in parts of Ewa Beach to $2M+ in Kahala. Current conditions favor prepared buyers with strong pre-approval and flexible terms.

Fee simple means you own both the land and structure permanently. Leasehold means you own the structure but lease the land (common in Hawaii). Leasehold properties are typically 30-50% less expensive but have monthly lease rent and potential future complications when leases expire.

Plan for 2-3% in closing costs, plus immediate expenses: property taxes (0.28% annually), insurance ($1,200-$3,000+ yearly), HOA fees ($200-$800+ monthly), and potential termite treatment ($1,500-$5,000). First-year total additional costs often reach $15,000-$25,000.

West Oahu (Kapolei, Ewa Beach) offers newer construction and affordability. Central Oahu (Mililani, Pearl City) provides good schools and commuter access. East Honolulu commands premium prices but offers luxury and proximity to beaches and downtown. Windward side offers laid back living and some of the most expensive property prices but great investments

HOA fees range from $200-$800+ monthly, covering exterior maintenance, insurance, amenities, and reserves. High-rise condos typically have higher fees ($500-$1000+) but include more services like security, pool, and common area utilities.

Work with lenders experienced in Hawaii's unique market. Expect stricter debt-to-income ratios (often 43% max), higher down payments (10-20%), and longer processing times. Military buyers can leverage VA loans with $0 down.

Termite inspections are mandatory and cost $200-$400. Treatment ranges from $1,500-$5,000+ depending on infestation severity. Always budget for potential termite work and negotiate responsibility in your purchase contract.

Oahu property taxes average 0.28% of assessed value annually—among the lowest in the nation. However, properties are reassessed regularly, and values have increased significantly. Owner-occupants receive beneficial homeowner exemptions.

No restrictions exist for foreign buyers on most properties. However, some new developments or specific buildings may have owner-occupancy requirements. Foreign buyers should expect additional documentation requirements and tax implications.

Oahu offers strong rental demand and appreciation potential but consider: higher property taxes for non-owner-occupied properties and management complexities. Cash flowing is not that great but where you make up is in the appreciation of values. Vacation rentals face increasing restrictions in many areas.

Typical timeline is 30-45 days from accepted offer to closing. Factor in additional time for: getting offer accepted in competitive market (weeks to months), inspections, appraisals, and potential delays due to Hawaii's unique title and documentation requirements.

Unlike mainland markets, many Hawaii homes include appliances, window AC units, and sometimes furniture. Clarify inclusions/exclusions in your offer. Solar panel lease assignments are common and require special attention.

Oahu's limited land supply and consistent demand historically support long-term appreciation. While market cycles occur, waiting often costs more than buying. Focus on finding the right property for your needs rather than timing the market perfectly.

Rather than "avoid," consider lifestyle preferences: West side has longer commutes but newer homes; some urban Honolulu areas have density and parking challenges; research flood zones, noise (airport proximity), and future development plans affecting any area.

Expect multiple offers on desirable properties. Winning strategies include: strong pre-approval letter, competitive but realistic offers, flexible closing timeline, minimal contingencies, and working with an experienced local agent who understands seller preferences and market nuances.