- How do I sign an offer if I don’t have a FAX?
Faxing is quite uncommon nowadays. Most communication transpires through email, along with documents utilizing digital signatures via DocuSign® (http://docusign.com) where the paperwork is pre-filled with tabs so you only click with the mouse to initial, sign, and date.
- Where is NextHome Paradise Realty located?
NextHome Paradise Realty
75-170 Hualalai Road, Suite #D118
Kailua-Kona, Hawaii 96740
| Get Directions |Phone: 808-345-6214 | Contact Penn Henderson
- What are the down payment requirements?
The amount of down payment required depends on how you intend to use the property, (eg. primary residence, 2nd home, investment.)
Typical Down Payment Requirements:
Primary Residence:
- 0% VA
- 3 % FHA
- 3% - 3.5% HomePath
- 20% Conventional
- 25% Portfolio
2nd Home
- 3% - 10% HomePath
- 20% Conventional
- 30% Portfolio
Investment
- 3% - 10% HomePath
- 30% - 35% Portfolio
*Additional factors may affect down payment requirements. Your lender can help guide you through the various options.
- How many days are required to claim Hawaii residency?
200 days in Hawaii County (Big Island) to be eligible for residency. If you had your legal domicile in Hawaii for the whole tax year, or if you lived in Hawaii for at least 200 days (no matter where you had your domicile in this period), you are a resident of Hawaii. There are some exceptions, however: military employees and students are not considered residents if their domicile is outside Hawaii and if they resided in Hawaii for more than 200 days solely for educational or work purposes.
- What is considered a long-term rental on the Big Island?
A rental term of at least 180 consecutive days.
- Can I bring my Pet Cat or Dog to Hawaii?
Yes. However, there are strict requirements you must follow before traveling to Hawaii with animals, in addition to post-arrival quarantine.
Hawaii is rabies-free and the quarantine law is designed to protect residents and pets from potentially serious health problems associated with the introduction and spread of rabies.
All dogs and cats, regardless of age (puppies and kittens included) or purpose, must comply with Hawaii’s dog and cat import requirements.
Hawaii Administration Rules govern the importation of dogs, cats, and other carnivores into Hawaii. This law states that dogs and cats meeting specific pre-and post-arrival requirements may qualify for 5 Day Or Less quarantine program, which has a provision for direct release at Daniel K. Inouye International Airport (Honolulu) after inspection.
Furthermore, the law requires dogs and cats that do not meet all of the specific 5 Day Or Less program requirements to be quarantined for up to 120 days upon arrival in Hawaii.
- How much are property taxes on the Big Island?
Hawaii real property taxes are based on the fiscal year, running from July 1 - June 30 of the following year and are paid in 2 even installments: 1) Installment 1 is due August 20 (payment for July 1 - Dec 31 taxes) and 2) installment 2 is due February 20 (payment for January 1 - June 30 taxes of the following year).
Assessed Value
Property taxes are based on assessed value, which is a value the tax office’s appraisal team determines a property is worth, which is different from market value (what a Buyer is willing to pay).
Existing Properties
An appraiser at the tax office will typically review and analyze 5 comparable properties that have sold prior to July 1 of a given year (without actually visiting the property) and ideally not too many months prior to July 1 to determine what the value may be of a given property. The appraised value is the value on October 1 and since the appraiser only looks at sold data prior to July 1, the appraiser will also assess how much the market may have moved up or down in the 3-month period from July 1 to October 1 and use that as well in determining the property’s value on October 1. The assessed value on October 1 is used to calculate property taxes due the following fiscal year. Example: October 1, 2017, assessed value is the value used to determine property taxes for the fiscal year 2018, which runs July 1, 2018 - June 30, 2019. An owner can contest and appeal the assessed value in case an owner believes the assessed value is too high. *If you intend to appeal an assessment, make sure to have actual recent sold data to support your claim. Appeals can be filed online using this PDF form: RP Form 19-91 (Appeal Application)New Construction
For new construction, not completed yet, the appraiser will typically look at the costs of the building permits the developer takes out at the County of Hawaii’s Department of Planning & Permitting, which is normally a fraction of actual market value and a major reason why new construction oftentimes have 1-year or longer with property taxes that are substantially below where property taxes should be, based on market value. Example: If a new home is completed in May 2019 the property taxes for the fiscal year 2019 (July 1, 2019 - June 30, 2020) will be based on assessed value on October 1, 2018, which is a date prior to the house being completed, and there is a good chance property taxes will be low, relative to market value, since the assessed value is determined in great part based on the costs of the builder’s building permits. Come October 1, 2019, there will be sales data (at the least May 2019 original sales prices) and it is likely the assessed value for fiscal 2020 (July 1, 2020 - June 30, 2021) will be much closer to the home’s market value.Hawaii County (Big Island) Property Tax Rates
Property Class Taxable per/$1000 Affordable Renting Housing $6.15 Agricultural/Native Forests $9.35 Apartment $11.70 Commercial $10.70 Conservation $11.55 Homeowner $6.15 Hotel/Resort $11.55 Industrial $10.70 Residential (less than $2M) $11.10 Residential (more than $2M) $13.60 (Fiscal Year Beginning July 1, 2021 to June 30, 2022) Review Property Assessed Values & Property Taxes
Click here to review the assessed value of any property in Hawaii County. Select “Yes, I accept the above statement” and then click “Search by Site Address” and you can enter Street Number, Street Name, and Unit Information. - Fee Simple vs Leasehold
Fee Simple (also known as Freehold) is the most complete form of ownership and most common throughout the United States and Hawaii. Fee Simple ownership includes the land and the buildings thereon. A Fee Simple condominium includes the actual condominium unit and the proportionate interest in the land underneath plus the proportionate interest in the common and limited common elements of the project. Common elements could include the lobby, elevator, walkways, swimming pool, etc. Fee Simple owners are responsible for their property taxes and sometimes association dues and or maintenance fees in the case of a condominium.
Leasehold ownership only includes the buildings, but not ownership of the land! A Leasehold condominium includes the actual condominium unit and the proportionate interest in the common and limited common elements of the project but not the ownership of the land. Someone else (the fee owner) owns the land and the Leasehold owner only leases (rents) the land at terms defined in the lease document. Prices for leasehold properties may appear very affordable, but remember, the price reflects a value without ownership in the land.
Potential buyers of leasehold property should proceed with caution with a full understanding of leasehold terms: Leasehold owners pay a monthly lease rent to the landowner. Per the terms of the lease, the lease rent could increase over time and is payable above and beyond the property taxes and any possible association dues or maintenance fees. Per the terms of the Lease, there may be restrictions on property usage, alterations, and maintenance.
Financing for Leasehold properties could be more difficult depending on how short the remaining lease term is. Generally, lenders require the lease to be at least 5 years longer than the loan term. So, a 15-year loan would tend to require at least 20 years remaining on the lease. The terms and details of the Lease can vary for different properties and the risks of ‘Step-Up Lease Rent’, ‘Lease Renegotiation’, and ‘Lease Expiration’ need to be carefully considered.
- Property Values: Assessed vs Appraised vs Market
Tax Assessed Value
The tax assessor establishes an assessed value for the purpose of collecting the appropriate property taxes. Big Island assessed property values are established once every year on October 1 based on ‘comparable sales’ (similar size & location) that recorded prior to July 1st of a given year while also considering any market movements up until October 1.
The assessed value on October 1 determines taxes for the following fiscal year, which begins the following year on July 1. That means tax assessed values lag behind the real market value by at least one year. Note: The tax assessor rarely inspects the inside/condition of the property, which means the tax assessor may lack information to consider such as expensive upgrades versus original or even tear down condition. Additionally, the tax assessor does not adjust for gorgeous ocean views, beautiful landscaping, or property frontage.For example, a property in Kona with great ocean views, spectacular landscaping, and stunning curb appeal might have the same tax assessed value as a ‘similar property on a nearby busy street with a dilapidated interior and no view of the ocean. While both properties might have the same tax assessed value, the true market value for both properties could differ substantially. Hence, one of the reasons why lenders don’t use assessed value in their loan calculations since it’s far from an 'accurate' or reliable indicator of the real market value.
Appraised Value
The appraised value (appraisal) is a professional value opinion completed for a fee by a licensed appraiser, often hired by mortgage lenders. A licensed appraiser determines the appraised value by researching and comparing most recent (during the last few months) comparable sales (similar size & location) and uses certain predetermined detailed criteria to make adjustments for condition, upgrades, functionality, layout, etc. While appraisers have to be very detailed and follow specific formulas, 10 different appraisers still might come up with 10 different value opinions! Keep in mind, that appraisals are subject to the person performing the appraisal (appraiser), and even with a high degree of detailed analysis and specific formulas used for calculations, the end result can often be different from one appraisal to the next.Real Market Value
The real market value is the price that a willing and able buyer pays for a property at that time. This could be affected by several market dynamics. For example, if two or more buyers are interested in the same property at the same time, it is possible that the property could sell at a higher price than otherwise. - What’s the difference between a ‘Foreclosure’ and ‘Short Sale’?
A Foreclosure is when the lien holder (generally the bank) files legal documents to take possession of the property because the homeowner defaulted on their payment obligation. The process takes time and is costly for the lien holder, and therefore the bank’s last and least favorable remedy.
A Short Sale involves a lienholder willing to approve a sale even though the proceeds of the sale will not be enough to pay off the balance owed to the lien holder.
Banks will often prefer a Short Sale, where the bank (or lienholder) will accept less than the balance owed in order to avoid having to foreclose on the property.
The property owner will need to qualify for the Short Sale approval, by showing evidence of true financial hardship that makes it difficult to continue with the payment obligation for the property (job loss, income loss, etc.), and does not have the funds to make up the shortfall for the amount owed.
The lienholder typically orders an appraisal to determine the true market value and carefully scrutinizes the property owner’s financial hardship before approving the short sale.
- What is the Seller's Disclosure Statement?
The mandatory Seller’s Real Property Disclosure Statement (SRPDS) is a written statement that must be completed by the seller, to the best of the seller’s knowledge, and must fully and accurately disclose all material facts relating to the property for sale.
‘Material facts’ refers to any fact, condition or defect, past or present, that could measurably affect the value of the property for sale to a reasonable person.
Sellers should not take their obligation to disclose lightly. Shellers should be as detailed and thorough as possible in their disclosure. A real estate purchase is a huge financial commitment for any buyer, and they tend to look favorably to a seller’s attention to detail in completing the disclosure. More importantly, it’s the best way to minimize risk for potential issues down the road, or even a lawsuit.
Additionally, the seller must amend the SRPDS with any later discovered information during the escrow time period.
If the buyer is not satisfied with the SRPDS, or the amended SRPDS, the buyer may terminate the contract in writing and within the specified time period of receipt, otherwise the buyer will have waived this contingency.
- What is 'Seller Financing'?
When a property has no underlying mortgage, or only a very small balance that could easily be paid off, the owner of the property (seller) could act as ‘the bank’ and extend financing to the buyer, where then the buyer would make monthly mortgage payments to the seller.
Seller Financing is fairly uncommon (especially during times of low-interest rates) since most sellers prefer to get the proceeds of the sale and avoid the potential risks involved.
- What is a Termite Inspection Contingency?
Most Purchase Contracts include the right for a buyer to select a professional termite inspector to complete a termite inspection and review the written report within a specific time period.
The seller is generally responsible for the cost up to a certain amount, per the terms of the contract. If the termite inspection report reveals live termite infestation, the seller will be responsible for the treatment of the live infestation (not repair of the damage) within a certain time period.
The buyer’s purchase of the property is contingent on the delivery of the termite inspection report to the buyer within the specified time period stating there is no visible evidence of live termite infestation - or the treatment of the live termite infestation within a certain time period.
If neither occurs within the time periods specified, the buyer may elect to terminate the contract in writing and within the specified time period, otherwise, the buyer will have waived this contingency.
- What is a 'Cash Offer'?
A cash offer is an all-cash bid, meaning a buyer wants to purchase the property without a mortgage loan or other financing. These offers are often more attractive to sellers, as they mean no buyer financing fall-through risk and, usually, a faster closing time.
Most financed transactions in Hawaii take a minimum of 30-days and often 45 to 60-days to close. In comparison, a cash transaction could potentially close within a couple of weeks, so long as escrow has time to prepare documents for proper recording of the deed.
For most buyers, all-cash offers are not a viable option. However, since cash offers will often times be for less than the seller’s asking price – there’s still a chance for a non-cash buyer to woo the seller with an attractive 'financed offer'. Purchase offers that include a pre-approval letter and proof of funds, combined with a well-written cover letter can carry a lot of weight with the seller.
- How do I ship my stuff to Hawaii?
Unlike shipping things on the mainland, there are only a few options to transport your things to Hawaii.
- Shipping Containers, Crates, Pods, and Barges
- FedEx, UPS, USPS
- Air Cargo Aloha Cargo (from limited airports)
Generally, a shipping company is the most cost-effective way to move most of your household items (big things like furniture, bikes, etc.).
If you’ve successfully downsized to the point where a container is not necessary, then shipping your items by mail will be the way to go. You can also supplement your container shipment by shipping important things via mail such that they arrive quickly.
- How much does it cost to ship a car to Hawaii?
$900 - $2,000, depending on vehicle size, where you are shipping it from, and how fast you need it to arrive by. You can choose between shipping your vehicle in a container, specific auto carriers, or in secure stowage on the vessel.
Note: You cannot pack your car with things you would like transported to Hawaii. Most shipping companies require the vehicle to be completely empty of any belongings (except for maybe a child seat).
- How long does it take to ship a container to Hawaii?
Generally, 2-weeks. Depending on the company, the service you select, and a bit of luck – it could arrive in a week. Or sometimes, it may take 3-4 weeks. A lot of it depends on when your container arrives at the port relative to the vessels scheduled departure date and how busy they are.
- How much does shipping a container to Hawaii cost?
Expect to pay anywhere from $4,500 - $9,000 for shipping household goods to Hawaii. Four main factors will influence the price: Location, Weight, Size, and Contents.
- 20-Foot Container – Generally fits the contents of a 2-BR condo
- 40-Foot Container – Generally fits the contents of a 3-BR house
Here is a helpful post providing details from Royal Hawaiian Movers
- What things CAN’T I bring with me to Hawaii?
- How much does Hawaii pet quarantine cost?
- Direct Airport Release ($185)
- 5-Day-or-Less program ($244)
- Neighborhood Island Inspection Permit ($165)
- Arriving early before eligible for 5-Day-or-Less ($14.30/each day early + $244)
- 120-Day program ($1,080)
*Prices can fluctuate and are subject to change
Pet owners must pay the fee prior to arrival, and there are no discounts for multiple pets.
Guide dogs for the blind and certified service dogs do not have to pay this fee. Active-duty U.S. military members may also qualify for fee reimbursement from the U.S. Department of Defense.
- What happens to my pet upon arrival in Hawaii?
Once your pet arrives in Hawaii, they will be transported to the Airport Animal Quarantine Holding Facility (AAQHF) by airport personnel for inspection.
They’ll then be relocated into indoor kennels and given fresh water (food is provided at your request).
If they arrive early enough during the day, they’ll be transferred to the main station in Halawa Valley, where they may be eligible for direct release. Pets arriving in Honolulu after 3:30 p.m. will spend the night at the airport facility and either be ready for release the next morning or taken to the Animal Quarantine Station (for unqualified animals).
- Can my pet be quarantined on the Big Island?
Yes. There is a satellite quarantine station located on the east side of Hawaii Island in Keaau (Near Hilo), about a 2-hr drive from Kona. It is a privately run business with excellent facilities for your pets. Both of Penn’s Dogs were quarantined here in 2001 for 30-days. The 4-lbs 'Tiki' lost prior to travel was quickly regained (and then some) after discovering avocados from the tree located in the quarantine courtyard!
*You must make arrangements with them directly, well ahead of time.
Bar-King Dog Kennel
P.O. Box 1184
Keaau, HI 96749
Phone: (808) 966-8733If your pet is being quarantined at a satellite kennel, your pet must first go to the Animal Quarantine Station on Oahu for positive identification and examination. Pets usually stay in Honolulu for at least two* days before being transferred. (* Due to a limited number of inter-island flights, pets arriving on Thursday or Friday may not be transferred until the following Monday.)
Owners must pay fees to the Animal Quarantine Station prior to the pet being transferred to the satellite facility. In addition, owners are responsible to pay for fees charged by satellite facilities. ($120-day quarantine costs – approximately $136, plus satellite station fees).
- Pest & Termite Companies in Kona
Bowman Termite & Pest Management
(808) 329-3215 | EmailHitman Exterminators
(808) 329-9505Veteran Termite and Pest Control
(808) 327-3313 | EmailAkamai Pest Solutions
(808) 937-5051 | EmailAloha Pest Solutions
(808) 964-3100Mason Termite & Pest Control
(808) 557-3333 | EmailHawaii Fumigation
(808) 326-7117 | EmailKona Coast Pest Control
(808) 334-1900 | EmailSmart Pest Prevention
(808) 887-6278Terminix
(808) 484-4738 - Home Inspectors in Kona
Akamai Home Inspection
(808) 329-5484 | EmailKina’ole Home Inspection Services
(808) 769-0095 | EmailKona Home Inspections
(808) 769-0545Leyva Property Inspections
(808) 464-7900 | EmailPacific Inspection Group
(808) 344-0974Top Notch Home Inspections
(808) 796-1077 | EmailWeinmann Home Inspections
(808) 640-1906 | EmailWoodbury Inspection Group
(808) 322-5174 | Email - Land Surveyors in Kona
Wes Thomas and Associates
(808) 329-2353 | EmailPattison Land Surveying
(808) 327-9439 | EmailCrossroads Land Surveying
(808) 325-8600 | Email - Architects in Kona
Hawaii Design Group
(808) 326-7670Geesey Architects LLC
(808) 756-5244H & S International
(808) 329-3266Keith A Winnie Architects Inc
(808) 756-7300Ali’i Architects Inc
(808) 329-8777Bryan Lindsey, Architect
(808) 333-6853Weigang/Marvick & Associates
(808) 329-3755Paul Bleck Ltd
(808) 326-1598Terrance J. Cisco, Architect
(808) 937-8953 - Home Builders in Kona
Coming Soon
- Mortgage Lenders in Kona
Coming Soon
- Title Companies in Kona
Fidelity National Title Insurance
(808) 334-0202First American Title Company, Inc.
(808) 329-4431First Hawaii Title Corporation
(808) 329-8227Old Republic Title
(808) 327-3700Title Guarantee
(808) 329-6666 - Interior Designers in Kona
Perino Designs
(808) 325-5919Waters Designs
(808) 987-7166Carol Ann LLC
(808) 327-0088Jeanne Marie Imports
(808) 329-4818Henderson Design Group
(808) 315-8782Willman Interiors
(808) 887-1719Fine Design Interiors, Inc.
(808) 885-8992Trans-Pacific Design
(808) 885-5587Peggy Chesnut & Co Inc
(808) 322-7878 - Real Estate Appraisers in Kona
Big Island Inspections Services
(808) 324-0722Franz Appraisals
(808) 326-1901GP & Associates Inc.
(808) 329-5050Hawaii Appraisal Group
(808) 217-2501Kona Appraisal Service
(808) 557-1013Hawaii Appraisal Group
(808) 217-2501 - Real Estate Attorneys in Kona
Jung & Vassar
(808) 326-4852Carlsmith Ball LLP
(808) 329-6464Kona Law: Fagundes III Joseph
(808) 326-9831Stephen D. Whittaker, Aal, LLC
(808) 960-4536'Jewell & Krueger LLC
(808) 326-7654 - West Hawaii Preschools
Creative Day Preschool
(808) 329-1323 | Kailua-KonaAlaka’i Academy
(808) 331-8000 | Kailua-KonaHawaii Montessori Schools
(808) 329-0700 | Kailua-KonaKamehameha Preschool
(808) 322-5400 | Kailua-KonaPunana Leo o Kona
(808) 323-8052 | Captain CookUniversity of the Nations Preschool
(808) 326-4411 | Kailua-KonaA Small World Preschool
(808) 885-4388 | WaimeaCole Academy
(808) 731-3220 | Kohala Coast - West Hawaii Elementary Schools
Kahakai Elementary School
(808) 313-6200 | Kailua-KonaHolualoa Elementary School
(808) 313-3800 | HolualoaKonawaena Elementary School
(808) 323-4555 | KealakekuaKealakehe Elementary School
(808) 327-4308 | Kailua-KonaHonaunau Elementary School
(808) 328-2727 | Captain CookHo’okena Elementary
(808) 328-2710 | Captain CookWaikoloa Elementary School
(808) 883-6808 | WaikoloaWaimea Elementary
(808) 887-7636 | Waimea - West Hawaii Middle Schools
Kealakehe Intermediate School
(808) 327-4314 | Kailua-KonaKonawaena Middle School
(808) 323-4566 | KealakekuaWaikoloa Middle School
(808) 883-6808 | Waikoloa - West Hawaii High Schools
Kealakehe High School
(808) 313-3600 | Kailua-KonaKonawaena High School
(808) 323-4500 | Kealakekua - West Hawaii Charter Schools
Innovations Public Charter School
(808) 331-3130 | Kailua-Kona
Grades 1-8Hawaii Technology Academy
(808) 676-5444 | Kailua-Kona
Grades K-12West Hawaii Explorations Academy
(808) 327-4751 | Kailua-Kona
Grades 6-12Kona Pacific Public Charter School
(808) 322-4900 | Kealakekua
Grades K-8Kuleana Education
(808) 989-0986 | Holualoa
Grades K-8Waimea Middle Public Conversion CS
(808) 887-6090 | Waimea
Grades 6-8Kanu O Ka Aina New Center Public Charter School
(808) 887-1117 | Waimea
Grades K-12 (Charter School) - West Hawaii Private Schools
Parker School
(808) 885-7933 | Waimea
Grades K-12Hawaii Preparatory Academy (HPA)
(808) 885-7321 | Waimea
Grades K-12Makua Lani Christian Academy
(808) 329-3093 | Kailua-Kona
Grades 8-12Kona Adventist Christian School
(808) 323-2788 | Captain Cook
Grades K-8Waimea Country School
(808) 885-0067 | Waimea
Grades PreK-12 - Insurance Companies in Kona
Aloha Insurance Services Inc
(808) 334-0044Atlas Insurance Agency
(808) 329-4844Paradise Insurance LLC
(808) 315-7207Allstate Insurance
(808) 326-1125 - Waimea Schools
A Small World Preschool
(808) 885-4388 | WaimeaWaimea Elementary
(808) 887-7636 | Waimea
(Public)Kanu O Ka Aina New Center Public Charter School
(808) 887-1117 | Waimea
Grades K-12 (Charter School)Waikoloa Middle School
(808) 883-6808 | Waikoloa
(Public)Parker School
(808) 885-7933 | Waimea
Grades K-12 (Private)Hawaii Preparatory Academy (HPA)
(808) 885-7321 | Waimea
Grades K-12 (Private)Waimea Country School
(808) 885-0067 | Waimea
Grades PreK-12 (Private)Waimea Middle Public Conversion CS
(808) 887-6090 | Waimea
Grades 6-8 (Charter School) - Waikoloa Schools
A Small World Preschool
(808) 885-4388 | WaimeaCole Academy (Preschool)
(808) 731-3220 | Kohala CoastWaikoloa Elementary School
(808) 883-6808 | Waikoloa (Public)Kanu O Ka Aina New Center Public Charter School
(808) 887-1117 | Waimea
Grades K-12 (Charter School)Waikoloa Middle School
(808) 883-6808 | Waikoloa
(Public)Parker School
(808) 885-7933 | Waimea
Grades K-12 (Private)Hawaii Preparatory Academy (HPA)
(808) 885-7321 | Waimea
Grades K-12 (Private)Waimea Country School
(808) 885-0067 | Waimea
Grades PreK-12 (Private)Waimea Middle Public Conversion CS
(808) 887-6090 | Waimea
Grades 6-8 (Charter School) - FAQ Disclaimer
The following FAQ’s are some of the questions frequently asked in some, but not all of the areas the author(s) of this content are familiar with. The questions and answers are not intended to be exhaustive and do not constitute legal or tax advice in any such manner. Content is subject to occasional amendments without notice.
It does not create an agent-client relationship for your particular question, issue, or concern. The questions and answers do not create any agent-client relationship or duty to assist you.
The information is intended to be helpful and to get you thinking in a more sophisticated manner pertaining to the buying or selling real estate. Moreover, you are encouraged to contact Penn to dialog further on your issues pertaining to matters of real estate.