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Today, we’re diving deep into a crucial topic that every non-resident buyer and seller of property in Hawaii should know about: HARPTA. Understanding the Hawaii Real Property Tax Act (HARPTA) can save you from surprises at closing, so let’s break it down and make the process a breeze!       What is HARPTA? HARPTA, or the Hawaii Real Property Tax Act, isn’t a tax itself but a withholding requirement. Specifically, if you’re a non-resident selling property in Hawaii, the state requires that 7.25% of the sales price be withheld at closing. The purpose? To ensure that any capital gains taxes are paid before you leave with the proceeds. How Does HARPTA Impact Sellers? If you're selling your property and you’re not a Hawaii resident, HARPTA will affect you. It’s essential to note that the withholding is based on the sales price, not just your profit. So, for example, if your property sells for $800,000, $58,000 will be withheld, regardless of how much profit you’ve made. However, the good news is that this withheld amount isn’t gone forever. If your actual capital gains tax is less than the withheld amount, you can apply for a refund! Can You Reduce or Eliminate HARPTA Withholding? Yes, there are ways to reduce or eliminate the withholding before you even file your taxes. Here’s how: Form N-288C: Filing this form can help you get a refund of the withheld amount before you file your tax return. This is particularly useful if the amount withheld exceeds your actual tax liability. Form N-289: If you meet certain conditions, such as having used the property as your primary residence for at least two years before the sale, you may be able to apply for an exemption from HARPTA. What Buyers Need to Know About HARPTA As a buyer, you’re not off the hook! HARPTA directly involves you because you’re responsible for ensuring the withholding is done and sent to the state. This might sound overwhelming, but don’t worry—your title and escrow company typically handles the process for you. However, it’s essential to be aware of HARPTA’s implications, especially if you’re buying from a non-resident seller. If you don’t ensure the withholding happens, you could potentially be on the hook for unpaid taxes. Also, consider the future: If you’re a non-resident buyer now but might become a non-resident seller down the line, HARPTA will come into play when you sell the property. Why Does Hawaii Have HARPTA? HARPTA ensures that the state of Hawaii collects its due taxes from non-residents selling property within the state. It prevents non-resident sellers from avoiding their tax obligations and ensures that the proper amount of capital gains tax is paid to the state. In some cases, this may result in over-withholding, but again, the seller can apply for a refund if the withholding exceeds their tax liability. Final Thoughts on HARPTA: What You Need to Remember HARPTA may seem complex, but with a little knowledge and the right forms, it’s manageable. Whether you're buying or selling in Hawaii, understanding HARPTA is crucial to ensuring that the real estate process goes smoothly and there are no surprises at closing. Take Action: Simplify Your Hawaii Real Estate Experience Whether you’re a non-resident seller looking to understand HARPTA or a buyer navigating the beautiful Big Island real estate market, we're here to help! Contact us today for expert guidance on buying or selling property in Hawaii. We’ll walk you through HARPTA, help you prepare the right forms, and make your real estate journey as smooth as the island breezes. If you have any questions about HARPTA or Hawaii real estate, don’t hesitate to reach out! Leave a comment below, or click here to schedule a consultation with our team. Aloha! 

No matter how many elections you’ve witnessed, every November feels like it’s full of surprises. The big question looms: should you make a move in the housing market, or should you hold off until the election dust settles? Historically, presidential elections have only a minor and temporary impact on the housing market. Still, it’s natural to wonder how this year’s election might influence your decision to buy or sell a home. Here’s a quick overview of what to expect, based on patterns from past election years. How Do Elections Affect the Housing Market? Home Sales During election years, November usually sees a slight dip in U.S. home sales. According to Ali Wolf, Chief Economist at Zonda, this slowdown isn’t drastic, but it’s noticeable. The reason? Uncertainty. People tend to hesitate when making big decisions, like buying or selling a home, if they believe the election could impact their finances or lifestyle choices. But here’s the good news: this dip is temporary. Home sales typically bounce back in December and continue to rise in the following year. In fact, data from the U.S. Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR) shows that after nine of the last 11 presidential elections, home sales increased the next year. **Home Prices** When it comes to home prices, the story gets interesting. According to Bankrate, home price appreciation has often outpaced that of non-election years. A detailed analysis of Case-Shiller data reveals that since 1987, home prices have risen an average of 4.84% during election years, compared to 4.44% during non-election years. On the surface, this might make it seem like election years are a boon for the housing market. But the reality is more nuanced. Let’s break it down with some historical data: - 2008: The housing market plummeted, with home values dropping by 12%. This wasn’t due to election jitters but rather the bursting of the housing bubble and a collapsing global economy.- 2021: The best year for home price growth since 1987, with values soaring 18.9% during the pandemic housing boom. Again, this had little to do with the election and everything to do with extraordinary economic conditions. Mortgage Rates Mortgage rates are a crucial factor because they determine your monthly payments when buying a home. So, what happens to mortgage rates during an election year? According to Freddie Mac, in eight of the last 11 presidential elections, mortgage rates declined from July to November. Looking ahead to the aftermath of this year’s election, most housing market forecasts suggest a slight easing of mortgage rates through the end of 2024 and into 2025. If these predictions hold, we could see a continuation of the trend where interest rates dip before the election and keep falling afterward. Lower rates mean lower monthly payments, but they also attract more buyers into the market. So, if you’re waiting for rates to drop below 6%, be prepared for increased competition, which could drive up home prices and reduce the likelihood of negotiating concessions. Final Thoughts Presidential candidates often make big promises about their economic plans, but when it comes to the housing market, their influence is usually minimal. Despite what they might claim, the housing market tends to follow its own rhythm, guided more by broader economic factors than by who’s sitting in the Oval Office. The housing market can be confusing, especially during an election year. But with the right information and a focus on local data, you can navigate it confidently. If you’re looking for personalized insights into your home or neighborhood, feel free to reach out. I’m here to help you make informed decisions, no matter what November has in store.

Selling a home on the Big Island of Hawaii can be an exciting journey, especially when you receive multiple offers. While it's a great position to be in, it can also be overwhelming to decide which offer is the best. Beyond just the highest price, several factors should influence your decision. In this post, we’ll guide you through the process of evaluating multiple offers to ensure you make the best choice for your situation. 1. Understand the Key Components of an Offer Before diving into the specifics, it’s important to understand the key components of a real estate offer: Purchase Price: The amount the buyer is willing to pay for your home. Contingencies: Conditions that must be met for the sale to go through, such as financing, home inspection, or the sale of the buyer’s current home. Closing Timeline: The time frame in which the buyer wants to close the deal. A quick closing might be appealing if you’re eager to sell, but a longer timeline could be beneficial if you need more time to move out. Earnest Money Deposit: A good faith deposit made by the buyer to show they are serious about purchasing the property. A higher earnest money deposit can indicate a more committed buyer. 2. Evaluate the Strength of the Buyer’s Financing Not all offers are created equal, especially when it comes to financing. A cash offer is typically seen as more favorable because it eliminates the risk of the deal falling through due to financing issues. If the offer involves a mortgage, consider whether the buyer is pre-approved or pre-qualified, as pre-approval is more reliable. Also, check the lender’s reputation and the type of loan the buyer is using; some loans, like VA or FHA, may have stricter requirements. 3. Consider the Contingencies Contingencies can significantly impact the certainty and speed of the sale. The fewer contingencies, the less likely the deal will fall apart. For instance, an offer with no inspection contingency or a waived appraisal contingency could be more appealing if you’re looking for a smoother transaction. However, be cautious of offers with too few contingencies, as they may carry risks for you as the seller. 4. Assess the Buyer’s Flexibility Flexibility in the closing timeline or move-out date can be a major advantage. If you need to close quickly, an offer with a shorter closing period might be more attractive. Conversely, if you need more time to find your next home, a buyer willing to extend the closing date or allow for a rent-back agreement could be ideal. Understanding your own timeline and needs will help you prioritize offers based on their flexibility. 5. Weigh the Earnest Money Deposit A higher earnest money deposit shows that the buyer is serious about their offer and less likely to walk away without good reason. If the buyer backs out of the deal without a valid reason, you typically get to keep the earnest money. Therefore, a larger deposit not only indicates a committed buyer but also provides you with some financial security in case the deal falls through. 6. Think About the Buyer’s Motivation Sometimes, a buyer's personal motivation can be a deciding factor. Buyers who are relocating to the Big Island, looking for a second home, or needing to secure housing before a specific deadline may be more motivated to close the deal without complications. A motivated buyer is less likely to cause delays or request extensive repairs. 7. Work with Your Real Estate Agent Your real estate agent is your best ally in navigating multiple offers. They can provide valuable insights into the local market, help you compare the pros and cons of each offer, and guide you through negotiations. Trust their expertise to help you make a well-informed decision that aligns with your goals. Conclusion Receiving multiple offers on your Big Island home is a great position to be in, but choosing the best offer requires careful consideration of various factors. By evaluating the buyer’s financing, understanding the contingencies, and considering the overall strength of each offer, you can make a decision that ensures a smooth transaction and the best possible outcome. If you’re selling your home and need expert guidance in navigating multiple offers, contact us today to get started.