Are you familiar with the true costs of selling your house in the Maui area? Before listing with a realtor, selling on your own, or partnering with a local solution provider like us, it’s important to understand how these expenses can significantly reduce your final proceeds. The numbers might surprise you!
Selling your home on Maui can be more expensive than many homeowners realize. There are numerous costs both before listing and after closing. When these expenses add up, a direct sale often becomes a more sensible option. In our latest post, we’ll explore the costs of selling your Maui house through the three most common methods. Understanding all your options is essential before making this important decision!
Costs Of Traditional Listing
Agent Commissions
Commission rates depend on the agent you hire. Typically, you’ll pay around 6% of your home’s final sale price to the agents involved in the transaction. Some agents also charge additional fees for marketing materials and administrative services. Before signing any listing agreement, make sure you understand exactly what services are included and what might cost extra.
Marketing Expenses
Even if your agent includes some marketing in their package, there are additional promotional costs to consider. Many Maui sellers invest in professional photography to showcase their property’s best features. Others utilize videographers or drone services to capture stunning aerial views that highlight proximity to beaches or mountain vistas. You might also want to upgrade your online listings to “premium” status so they appear at the top when potential buyers browse homes in your area.
Repair Costs
Most homes require at least some repairs before going on the MLS. After a buyer is found, the inspection will likely reveal additional issues, leading to negotiations about who handles these repairs. You can either complete the work yourself or reduce the sale price accordingly. In Hawaii’s tropical climate, moisture-related repairs and termite damage are common concerns that can become expensive quickly.
Cleaning And Staging Costs
Most sellers have their homes professionally cleaned before listing. This often includes removing personal items and clutter, which means paying for storage elsewhere. Many Maui homeowners also hire a professional stager to transform the property into a picture-perfect space that appeals to island buyers looking for that perfect Hawaiian lifestyle.
Closing Costs
In a standard home sale, sellers typically pay around 2% of the final sale price in closing costs. While this percentage can be negotiated between buyer and seller, 2% is the general expectation. On higher-priced Maui properties, this can represent a substantial sum.
Ongoing Ownership Expenses
Listing your house with a Maui real estate agent can take several months, especially if you’re an off-island owner. Throughout this period, you remain responsible for property taxes, utilities, homeowners insurance, maintenance, landscaping, and possibly mortgage payments. Hawaii’s higher utility rates and property maintenance costs can make these monthly expenses particularly burdensome, potentially adding up to thousands of dollars while you wait for a buyer!
Costs of An FSBO (For Sale By Owner) Listing
While selling your home yourself helps avoid agent commissions, there are other significant costs to consider. In addition to many of the expenses mentioned above, here are some additional costs to expect when selling your house in the Maui area on your own.
Extensive Marketing Costs
When using an agent, additional marketing is optional. However, with an FSBO, you’re responsible for 100% of the marketing expenses. You’ll need to pay for all online listings, printed materials, professional signage, and open house costs. Professional photography becomes essential to compete with agent listings, and you might want to invest in virtual tours or videos to attract off-island buyers who can’t visit in person.
Property Preparation Costs
Preparing a house for sale requires significant effort and expense. As with traditional listings, your home needs thorough cleaning from top to bottom. You’ll need to handle all repairs before listing and be prepared for additional repairs after inspection. Many sellers also face storage costs for personal belongings and may need to hire professional stagers to make the property appealing to Maui’s discerning buyers.
The Value Of Your Time
When you choose an FSBO listing, you’ll spend a considerable amount of time managing the entire sales process. You’ll need to be available for showings (difficult for off-island owners), create listings and marketing materials, respond to inquiries at all hours, process complex paperwork, handle negotiations, and navigate Hawaii’s unique real estate regulations. This time commitment can be especially challenging if you’re managing the sale from another island or the mainland.
Costs of Selling Directly
None
When you choose to sell your Maui house to a local solution provider like Maui Home Buyers, you can avoid all the selling costs mentioned above. There are no fees, repair costs, or even closing costs. As a family-owned business with deep island roots, we buy properties as-is, potentially saving you thousands of dollars and providing a dependable closing date you can count on.