Many times buyers (particularly first time home buyers) are not familiar with escrow requirements when they purchase real estate.

First of all, escrow needs all of the buyer’s contact information:  home, work, cell and email.

Secondly, a packet from escrow will be provided to you and they will need to know how you would like to hold title to your home.

You also need to let Escrow know if funds are coming from the sale of an existing home. 

After your loan documents have been received, Escrow will let you know what the amount is needed to close.  Funds need to be in the form of a wire transfer or cashier’s check payable to the Escrow Company.

You also need to provide Escrow with the name of your insurance agent and phone number prior to close of escrow.

At Signing:  All individuals named on the Deed and/or Mortgage must be present.  Everyone must present a valid identification in the form of:   a current Driver’s License, Passport, Department of Motor Vehicles Identification Card or other approved identification card provided it has a photograph, description of the person, signature and an identifying number.

You will receive the keys from your real estate agent and the recorded deed will be mailed to you from the County Recorder’s Office.

I just got my license and my best friend’s cousin calls me saying he needs help because he wants to sell his home via an Open Listing.  I tell him before he does anything let me meet with him to discuss the different types of listings.

I tell him there are four types of listing contracts; a Net listing, an Open listing, an Exclusive listing and an Exclusive Right to Sell listing.

A Net listing is one where the owner specifies a net price he wants for his property, and any amount over and above that price is the commission paid to the selling broker for his services.

An Open listing not only allows the seller to list the property with more than one broker, but also allows him to sell the property himself.

An Exclusive Agency listing gives the employment contract to one broker only and assures him that the property will not be listed with other brokers.  However, the seller has the right to sell it himself and not compensate the broker.

Lastly, the Exclusive Right to Sell listing is one that makes the broker the sole and exclusive agent for the seller.  Regardless of who sells the property the broker will get compensated.

After going over the pros and cons of all of the listing types he turns to me and asks me where I learned all of this.  I proudly say “Inet School of Real Estate”.  He then says, “lets go with the Exclusive Right to Sell”.  I take out the paperwork for signatures and get my first listing, list price……$1,250,000!   Yeah!!

In many cases, staging helps a home sell quickly and for more money. It’s also one of the few things your clients have control over. With a little help, any homeowner can get their home picture perfect and buyer ready.

In terms of staging, we’re not talking about major renovations; just deep-cleaning, uncluttering, and maybe a fresh coat of paint. The point of staging is to remove anything that will distract a buyer from all the great things the home has to offer. But for some sellers, it’s easy to go overboard if they’re not careful.
Here are a few of the biggest mistakes sellers make to over-stage a home.

1. Don’t be dull

Staging is not to make the home boring and bland. Staging is to get the potential buyer to feel that the home looks nice all the time, so it should feel like real—but incredibly neat!—people live there. Buyers typically prefer boring over cluttered and crazy, but color will photograph well and will stand out, leaving a lasting impression for buyers. Simple touches add subtle interest, just don’t go too wild.

2. Selling with smell

No one wants a home to smell like the dog or last night’s dinner when a potential buyer arrives. But it’s almost as bad to overcompensate with potpourri and air fresheners. Overwhelming a serious buyer with strong scents can backfire. A home should smell fresh and clean, not heavily perfumed. You best bet is to do a deep clean to remove lingering smells and avoid cooking anything too potent during the list time.

3. The sound of music

Forget the music. It backfires more often than not. You can’t guess the buyer’s musical tastes, and it can make some buyers feel like they’re being manipulated.

4. The elephant graveyard

Sometimes homeowners move out before the house sells, taking with them their best furniture and possessions for the new home, leaving the unwanted furniture behind. In a mostly empty house, it’s even more important that what’s in there be tasteful and add to the ambiance of the home. The old sectional sofa sitting forlornly in an empty living room will just make the house feel abandoned. The house should be well furnished or completely empty. Not somewhere in between.

5. Wasting money on the wrong renovations

Many sellers start huge renovation projects just before they sell. Maybe it’s the bathroom or kitchen that they’ve always wanted to fix up. But renovations rarely give the seller any return on the investment. Plus, it’s impossible to guess what the next buyer’s tastes are like. It’s better to do small things like new cabinet hardware or new light fixtures. They usually go a long way toward making the home feel up to date, without the cost of a major renovation. Sellers should depend on their savvy agent to help figure out how much updating is needed so the home will sell easily in the current market.

6. Remove clutter, don’t just move it around

When it comes to selling a home, less is more. An uncluttered home is almost always more attractive. This means photos are nicer, which translates to more showings, and it makes the house feel open and airy. But you can’t just try to hide the clutter. A serious buyer will want to look in the closets, in the garage, in the storage spaces. That means they’ll explore, even looking under your sink. So it’s important to stress the importance of getting rid of, or storing things. It might seem like a lot of work, but it will make it easier to move out once the seller gets the offer they’ve been waiting for.

Immediate response  to the word “probate” dealing with the sale of real estate quickly brings to mind a delay in the transaction.  Probates usually take a minimum of 6 to 8 months to complete.  Did you know, however, you do not have to wait until the probate is completed in order to sell real estate.

Real estate can be sold as soon as the “personal representative” is appointed by the court.  The personal representative will gather the assets of the person who died, pay the bills, and distribute the property to the persons who are to inherit the assets.  Once a personal representative is appointed and if the beneficiaries or heirs agree to the sale, the real estate can be sold at that time.  If any of the beneficiaries or heirs disagree with the sale – then there will be a “confirmation hearing” in court, which will delay the sale of the property.

In some instances where all of the assets owned by the deceased is over $100,000 or less the Small Estates Division of the Circuit Court can handle the probate without an attorney.  This, however, could delay the sale of real estate and you would have to wait anywhere from 6 to 8 months before the property can be sold.  An alternative to this is you can hire your own attorney and do an “Informal Probate” and you may be able to sell real estate in 6 weeks instead of waiting 6 to 8 months or longer.

A common misunderstanding is the thinking that HARPTA is a tax.  This is a means for the State of Hawaii to collect taxes from absentee owners.  HARPTA stands for Hawaii Real Property Tax Law.

A question that arises from military families is whether HARPTA applies to them.  If an active duty member closes a sales as a primary residence and being transferred from Hawaii under military orders the 5% HARPTA does not apply.  If however the property was rented as an investment then HARPTA would apply.

Here are some other listed exemptions for HARPTA:

EXEMPTIONS FROM WITHHOLDING

1. Transferor furnishes Hawaii Resident Certification. No withholding is necessary if the seller or transferor furnishes to the transferee a properly completed Form N-289 stating (i) the transferor’s federal taxpayer identification number, (ii) address, and (iii) that the transferor is

2. a Hawaii resident. However, this exemption will not apply if the transferee has actual knowledge that the information on the Form N-289 is false. (Note that the definition of Hawaii resident for purposes of the withholding required by HRS §235-68 would include foreign corporations and partnerships which are registered with the Hawaii Department of Commerce and Consumer Affairs to do business in the

State of Hawaii).

3. Transferor’s Affidavit of Principal Residence. No withholding is necessary if the transferee receives an affidavit by the transferor stating (i) the transferor’s federal taxpayer identification number, (ii) that the transferor used the property as a principal residence for the year preceding the date of the transfer and (iii) the sales price for the property does not exceed $300,000.

4. Transferee Receives Hawaii Withholding Certificate.

(a) The withholding under HRS §235-68 may be reduced or eliminated pursuant to a “withholding certificate” issued by the Hawaii Department of Taxation. A withholding certificate may be issued by the Hawaii Department of Taxation upon receipt of Form N-288B establishing that either (i) the transferor will not realize any gain with respect to the transfer or (ii) the transferor will have insufficient proceeds to pay the withholding required by HRS §235-68 after payment of all costs, including selling expenses and the amount of any mortgages or liens secured by the property.

(b) The withholding may also be reduced or eliminated pursuant to a “written agreement” with the Hawaii Department of Taxation. Persons who engage in more than one real property transaction in a calendar year or to whom meeting the withholding requirements are not practicable are eligible to enter into these written agreements.

5. Notice of Non-recognition Treatment. No withholding is necessary if transferee receives from transferor a properly completed Form N-289 stating (i) that transferor is not required to recognize gain or loss with respect to the transfer and (ii) briefly describing the transfer and summarizing the law and facts supporting transferor’s claim. Non-Hawaii residents doing 1031 exchanges of real estate may consider this option to avoid withholding.

When it comes to selling and buying homes, there’s a large gap in the perception of what sellers think buyers want, and what buyers actually want.  Because of this gap, sellers often spend lots of money renovating and fixing their homes prior to selling, only to learn they wasted a lot of time and money doing things that buyers just aren’t interested in, or are willing to pay extra for.


Wouldn’t it be great to know exactly what buyers want BEFORE spending the time and money on costly renovations?

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Characteristics of Homes Purchased

Home Buyer’s Search for a Home With Particular Features

Home Buyer’s Search for a Home With Particular Rooms

Home Buyer’s Preferred Home Compared to Home Purchased

Undertook Home Improvement Project Within 3 Months of Home Purchase

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Escrow is a third party that assists in the exchange of real property from one person to another.

When a buyer and seller agree on price and terms through a real estate contract escrow is then opened with instructions and a deposit from the buyer.  An escrow officer will manage the transaction and remain an unbiased third party.

Some of their responsibilities include coordinating lender funds, distribution of funds, managing deposits, documents and recording ownership changes.  Other common practices are that the buyer will order title insurance and the escrow officer will obtain a preliminary title report.  The escrow officer will manage the contract's contingencies and coordinate for services that include: flood insurance, home insurance, inspections, financing and repairs.

It's helpful to have an experienced escrow officer managed so many of the complexities in a transaction and remain unbiased. The National Association of Realtors has a great article that elaborates on escrows.