Inheriting land in paradise is a once-in-a-lifetime opportunity to build your dream home or invest for profit. But inherited Hawaii property also requires careful management from beginning to end. Whether you want to hold the property for income, sell it for a windfall or liquidate for cash, experienced advisors will steer your inheritance toward your goals.
Selling the inherited property Land Boss: Hawaii Property Solutions starts with navigating the state’s complex historical land systems stemming from ancient traditions like Ahupua’a awards and Kuleana awards. Documentation requirements involving these legacy-based ownership rights tripped up many attempting real estate transactions solo without legal guidance on protocol and local ordinance practices. Then there are ingress/egress issues involving private road access if you intend to subdivide for multiple homes or commercial/agricultural use permits if you plan to develop waterfront parcels. In addition, confirming that no cultural artifacts or indigenous burial sites trigger historic preservation restrictions on usage.
Finding a buyer means leveraging online marketing and traditional advertising. Create a website and print flyers that highlight your property’s unique attributes. Post eye-catching “For Sale by Owner” signs at road access points and throughout the area. List on national land selling websites that charge membership fees but reach targeted buyers. Advertise in local newspapers and penny saver circulars that still work to attract older buyers. And place ads in real estate magazines and at local feed, hardware and post offices.
Once you find a buyer, close the deal. Closing costs typically run 1-2% of the purchase price to cover legal transfers, title insurance, loan fees and conveyance taxes. Sellers and buyers may split or share these charges as negotiated. In addition, you’ll likely pay for infrastructure requirements like clearing the land, obtaining utility access and driveway construction.
For a buyer, the most significant cost is the initial investment. Prices for Hawaii land run $30,000 to $100,000 per acre for undeveloped and rural sites away from high-end resorts and prime beaches. Then there are additional costs like legal fees, land appraisals and the substantial expense of transferring ownership in public deed record offices. Buyers should consider these and other costs when determining if an inherited Hawaii property is the right investment.