Are you trying to sell your house in Hawaii, but don't know where to start? In this article I'm going to show you a few different options you have for selling your house (or condo, townhouse, multi-family, etc.), whether you're looking for a top of market retail value or a quick sale, whether you're in preforeclosure or have oodles of equity. The right option will be determined by you alone, so buckle up and let's get right to it!

It's no secret that the Hawaii real estate market operates at a different price point than most markets in America. Oahu, Maui, Kaua, Big Island - of course, there are differences across and between the islands, but real estate here is generally expensive compared to the rest of the country. For this reason (among many others), it's critical to understand both the local market as well as your options for selling your property.

Option #1: List Your House With A Realtor

This is the option most people selling their home are familiar with. It is not - I repeat, not - the only way to sell your house, no matter what some might tell you. It is perfectly legal to sell your house on your own, however most people do enlist the services of a licensed real estate agent.click here now sell my house cash

Pros: A good agent will know your local market conditions if you aren't up to speed yourself. Trending prices of Waikiki condos? The affects of Chinese tourism increases on townhouses in Kihei? Whether you should buy in Poipu or Kapaa? Your agent should have industry insight into these questions. They should also know about local Hawaii-specific guidelines and regulations, such as the differences in shoreline setback regulations between Oahu and Kauai and legalities of erosion control structures. Being a coastal state means extra considerations. A realtor will also handle most if not all of the paperwork, filings, open houses and other activities that stand in the way of a closing.

Cons: Listing your house with an agent will, in most cases, cost you 6% in commission fees. That might not be a big deal in some states, but in Hawaii that can easily be $30,000 or more for a single family house. You might also have differing opinions on the listing price and timeframe for price drops than your agent. What will you do when opinions differ? If your house is in foreclosure, then you also need to have an agent who understands how foreclosures are handled here - our laws and guidelines aren't the same as on the mainland. Many realtors, unfortunately, don't know how to handle a short sale and Hawaii has no shortage of overleveraged mortgages.

Bottom Line: If you have the budget and don't mind waiting for a top of the line retail price, than using an agent to sell your house is likely the best bet. Ask me for a local referral if you need one.

Option #2: Selling Your House Yourself On The Market

This option has become quite popular in recent years. The "For Sale By Owner" or "FSBO" tactic has become the method of choice for home sellers from Honolulu to Kehaka. Do you have the chops?

Pros: Save that 6%. Probably the most common reason for home sellers to go it alone is to save that commission and keep it in their pocket. As stated earlier, that's a large chunk of change in Hawaii where homes can easily sell for over $500,000. Another reason might be controlling to whom and when you show your house. You and you alone will determine your open house schedule. Want to go surfing on Sunday? Go for it - tell the buyers to pop in on Saturday morning instead. It's your call. Lastly, you can list your own property on the MLS for $300 or less for added exposure.

Cons: Are you ready for the paperwork? Do you know how to read a standard Hawaii real estate purchase contract? If not, you better get a friend who does. You also might not understand your local market conditions and risk settling for a lower price or longer sale period than you intended for. Lastly, many do-it-yourself home sellers don't have the marketing reach that an agent can offer. Also, if you need a short sale, forget the FSBO - you'll need a licensed Hawaii agent or a professional investor to help you along.

Bottom Line: FSBOs are popular here. Drive around Honolulu on weekends and look for the "For Sale By Owner" signs on the lawn - you'll see them. Selling your house yourself puts more responsibility on your shoulders but also puts more money in your pocket when the house sells. In Hawaii where the stakes are larger, that's a lot of cash when all's said and done. Just don't skimp on the lawyer since odds are you don't work with the contracts everyday.

Option #3: Selling Your House Quickly To An Investor

Another option for many folks is to not even bother with any marketing at all. A quick Google search or scan of Craigslist will reveal Hawaii real estate investment companies that buy houses directly. Let's look at the pros and cons of this method:

Pros: You can sell your house directly, saving that 6% just as if you were selling your house yourself. Once again, big savings in the Aloha State. Many investors can also buy your house in 30 days or less since they use available private investor capital instead of waiting on a lengthy bank appraisal process. So if you're in a distressed situation where you need an influx of cash sooner than later or you need to get out from under 

burdensome mortgage payments, a quick sale to an investor may be your best ticket. If you're trying to avoid a foreclosure, an investor can also be your best friend because they can not only help have your short sale processed but can be the buyer as well, saving you from watching your house sit unsold on your local island MLS while buyers pass over your short sale for a house they know they can buy without bank intervention. Hawaii has many real estate investors but make sure you work with one who is professional and can actually close on your property - there are many who don't have much heft beyond a fancy business card.

Cons: You're unlikely to get retail price when selling your house to an investor. Investors by and large need a significant amount of upfront equity since they have a profit motive (instead of moving in). So if you're ready to accept a discount and have more to think about than price, go for it. But if you can wait 6 months or longer for that top of market offer on that Diamond Head beachfront home, this is not the way to go. Maybe you can work out some seller financing on top of the commission savings to increase your net. But if you're in a bankruptcy, divorce or probate scenario, you might want to take less money but know your deal is going to close and move on to better days ahead.

Bottom Line: If you want to sell your house in Hawaii quickly and need a fast solution, than an investor may be your best option. In addition to saving you agent fees, you'll get a fast close of a problem property. However, this option won't get you market value. This is for folks who need a helping hand.

As you can see, the best option really depends on the situation you're in with regard to price, time and any surrounding circumstances. Hawaii isn't just surf, sun and sand - we also have real people with real families and real lives. Folks here manage their finances and mortgages just like folks on the mainland. Some people own their houses free and clear while others, in areas like Ewa Beach, Kihei and Hilo, are having trouble making even partial payments. The Hawaii real estate market has certainly been shaken up these past five years, the outer islands especially. Understanding your neighborhood and motivation and needs for selling your house will help you choose the best option for you and your family. Aloha.

Big Rock Investments, LLC, is a Hawaii real estate solutions and investment provider here in the Aloha State. We buy, sell, rehab and wholesale residential property right here in the islands. We specialize in helping people in trouble solve their real estate problems, whether they need to stop foreclosure on their Hawaii house or sell a distressed property quickly for cash. We also put these properties back on the market either fully rehabbed or in their current condition at discount market prices, creating equity-driven Hawaii real estate investment opportunities. Additionally, we offer a very attractive private mortgage lending program where your money works hard for you, earning a very fixed high interest rate with the safety of a recorded private mortgage.