Seller FAQs

When it’s best for you! Obviously, if you are closing on a home purchase, moving for work, or want to get settled before the new school year, you have a timeline you need to work with. But, if you have the luxury of choosing when to sell, there are a few considerations. Spring is traditionally a time when there are more buyers looking, but you may also have more competition. Fall, and closer to the holidays, is a good time to get a higher price from buyers that need to move before the new year.

Determining your home’s market value is one very important reason to use a real estate agent. I will do a comparative market analysis (CMA) to help you set the correct listing price. I look at recent sales of comparable homes, similar homes that are under contract, and homes that are listed in the same price range of your home. Then I compare features of the homes including the size, style, number of rooms, age of the home, amenities, condition, lot size and placement, and the location or neighborhood. (Note: the tax appraiser’s assessed value of your home has nothing to do with the market price.)

What your home is worth and what you should list it at are not the same. You always want to

have room to negotiate with buyers, so setting a “firm” price to avoid the negotiation process is not usually a good strategy. Neither is setting a very high price to “see what we get.” Setting an unreasonably high price usually results in longer time on the market, which does not look good to buyers and will frustrate you. Many sellers ask about the price that Zillow or other real estate websites give for their home. These are not reliable because these sites are only taking into consideration very general demographics.

The length of time on market will depend upon the market in your area at the time of listing and whether the home is priced realistically. I am always working to get you the highest price in the shortest time possible. On average, a home that is priced right goes under contract in two to three months. If you need to sell fast, that should be reflected in the list price.

Our teams commission is 6% of the sales price, split between the listing and selling sides. Commissions are not paid directly to the agents, but to our brokers. They collect fees for marketing your home on MLS and other websites, administrative costs, insurance fees, and required fees for storing your transaction records as required by law. My broker then pays me for representing you in the transaction. As your agent, I will work very hard to represent you ethically and with your best interest always the priority. If you have any questions about the commissions, I’d be happy to talk with you further.

I recommend that you give the home a thorough cleaning– get rid of anything you aren’t taking with you, declutter surfaces, take care of repairs, make sure the major mechanical systems are in good operation, have the exterior pressure cleaned and the landscaping spruced up. You may also consider repainting if it is overdue or if the home is painted in dark or bold colors. See our helpful Preparing Your Home for Photos and Tips for Showing Your Home guides for more details.

We will decide together on how to handle showings. We can set parameters as to the hours and days that showings are allowed, and how to notify you in advance. Homes show best when the homeowner is not present, but if this is not possible, we will work together to create the best experience for the buyer that also fits your lifestyle. We use an online scheduling system called ShowingTime that allows agents to pick the day, time and length of the showing which we can either confirm or decline. Usually we use an electronic lockbox that allows buyers’ agents to access your housekey. If you have pets in the home that need to be tended to during showings, we will work out the best way to handle them. Furthermore, I will try to get feedback from each showing and pass that information back to you.

I strongly discourage those routes, not only because I want to help you sell your home, but also because they can be a huge burden and don’t get you the best price. Buyers know that when a home is sold FSBO or on a flat fee service, that the seller is paying little or no commissions, so they will offer less. Consider that when you sell your home by yourself, you will have to be present for all showings, and you won’t have someone to advocate for you through all the steps of the contract and closing process. If something goes wrong, you’ll want me in your corner to prevent problems or save the deal, so you don’t have to start over.

Hands down, our best marketing tool is the Multiple Listing Service (MLS.) This is the database all real estate agents use when searching for properties for buyers. And buyers are using websites like Realtor.com, which is why all my listings automatically show up on these websites. My broker will list your home on our company website, and I may also use additional avenues such as open houses, brokers’ opens, and direct mailing, depending on your home and market.

Incentives are something we like to consider on a case-by-case basis. There are certain circumstances where it may be smart to offer an incentive. Some incentives can be offered from the start. For example, if your home is in an area that doesn’t get a lot of traffic, we may offer an incentive to agents to bring us a buyer. Or if you know the appliances are at the end of their lifetime, you may offer a home warranty to help the buyers replace them. Other incentives, like helping with closing costs, are better used during the negotiation process.

It’s smart to disclose any issues right up front. Your buyers will have the right to inspect the home, so it’s best they not be hit with bad news after going under contract. If you know of problems with the appliances, plumbing, electric, HVAC, roof, foundation, property lines, or deed, these need to be listed on the Seller’s Disclosure. If there are repairs that you can have done before listing, go ahead and take care of those. Anything that cannot be remedied before listing should be considered when setting your list price.

It sometimes happens that a home does not appraise at or above the contract price. When this happens, we go back to negotiations to determine if we can save the deal by adjusting both the sales price and the terms of the contract to the satisfaction of both buyer and seller. Usually we are able to work it out and save the deal. You always have the right to refuse to lower the price to meet the appraisal, but it’s usually in your best interest to try to work with the buyer to resolve the issue as the next appraisal could result in the same valuation. If you are concerned about the appraisal value, go ahead and have your home appraised before setting the listing price.

A multiple-offer scenario is a fun position to be in as a seller. I will help you through the negotiation process to select the right buyer– and that is not always the one with the highest offer. We need to consider how strong the offer is, whether they are offering cash or financing, how much they are financing and what type of loan they are using. How much they are offering to put in escrow and the terms of the inspection process are indications of their commitment to the deal. You may also draw on sentiment: are they buying your home as an investment or a place to raise their family?

It is customary that the Seller’s Closing Costs would include, but it is not limited to the cost of drafting of conveyance documents and bill of sale, cost of obtaining Seller’s consents, FHA or VA mandatory closing fee, notary fees, recording fees to clear Seller’s title, 60% of the premium for standard coverage title insurance, 50% of Escrow fee, Conveyance Tax, buyer and seller agent commissions, and FIRPTA/HARPTA. Additionally, Seller costs can include ordering Section M certified documents from your property’s association that must be no older than 6 months old, a Survey and Termite Inspection Report, if requested by the Buyers and agreed upon in the accepted purchase contract.

HARPTA, which stands for Hawaii Real Property Tax Act, is a state law that requires non- resident sellers to withhold 7.25% of the proceeds from a real estate transaction. The seller may fill out an exemption application which can save them money or eliminate entirely the withholding. The exemption applications are filed prior to transferring of title to the new owner in order for the 7.25% to not be withheld. If the Seller is withheld the 7.25% but thinks they can prove they do not owe this entire amount they can file for a refund. Be aware you will need to provide receipts and accounting documentation to prove your exemption or refund. Always speak with a tax professional for guidance on this or any other Real Estate tax subject.

FIRPTA, which stands for Foreign Investment in Real Property Tax Act, is a state law that requires foreign to withhold 15% of the proceeds from a real estate transaction. Similar to HARPTA, the seller may fill out an exemption application which can save them money or eliminate entirely the withholding. The exemption applications are filed prior to transferring of title to the new owner in order for the 15% to not be withheld. If the Seller is withheld the 15% but thinks they can prove they do not owe this entire amount they can file for a refund. Be aware you will need to provide receipts and accounting documentation to prove your exemption or refund. A Seller whom is not a US citizen must file and pay for both HARPTA and FIRPTA. Always speak with a tax professional for guidance on this or any other Real Estate tax subject.

Yes, you can. If you are dependent on the sale to make your move, we normally advise you to wait until the inspection period and the conditional loan approval have been fulfilled before making that step. Make sure to speak with the escrow officer to see if it makes sense for you to sign your closing documents here on the island verses with a notary wherever you are moving to. If moving out of the country it may be best to sign here on the islands instead of having to coordinate the long process with the Embassy elsewhere.

While it is not required to stage your home before putting it on the market, we find it to be an incredibly valuable tool used in selling your home quickly and at the best price. Home staging makes it easier for buyers to visualize the property as their future home. Pineapple Group includes staging at no cost to you.

We can send you a list of vendors that may be able to help with repairs and renovations and handle all scheduling and granting access to the property.

While you technically can be home, we do not feel that this is the best practice. Selling a home can be an emotional process, and seller’s emotions or opinions about their home are often apparent if they are home while a buyer is viewing the property. It is best for a Buyer to view the home without the Seller being home so that that they can feel comfortable making comments and opinions to their Agent. It is also difficult for a Buyer to imagine the house as their own when the Seller is home during a showing.