What is HARPTA and does it apply to me?

HARPTA is the Hawaii Real Property Tax Act. If the seller is not a Hawaii resident, escrow must withhold 7.25% of the gross sales price at closing and remit it to the State of Hawaii. The withholding is calculated on the sale price, not on profit. Foreign sellers also face FIRPTA federal withholding of 15%, putting combined withholding in the low 20s percent of gross. Both are refundable, and sellers can apply for a withholding waiver or reduced-withholding certificate before closing.

How long does it take to sell a house on Maui in 2026?

In the 2026 Maui market, expect roughly 30 to 90 days to go under contract for a correctly priced home, plus 45 to 60 days to close with a financed buyer. Inventory is up and buyers are negotiating again, so overpriced listings sit, go stale, and typically sell for less than they would have if priced correctly at launch.

Should I make repairs before listing my Maui home?

On Maui, termite treatment, resolving water intrusion or rot, and cleaning up permits on additions almost always pay for themselves, because buyers and lenders will find those issues during inspection and renegotiate for more than the repair cost. Cosmetic renovation generally does not return its cost. Paint, landscaping, and decluttering do.

Are Zillow estimates accurate for Maui homes?

Automated valuation models are unreliable on Maui because local inventory includes agricultural zoning, ohana units, rain catchment water, unpermitted space, and ocean view premiums that can swing six figures within a single street. A credible Maui valuation requires genuinely comparable closed sales, current competing inventory, and the property's actual permit and zoning status.

Should I sell my Maui vacation rental condo now?

It depends on whether the unit is on the Minatoya list and which Bill 9 phase-out deadline applies to its location. West Maui transient vacation rental use on Minatoya-list units ends after December 31, 2028, and South Maui after December 31, 2030. That deadline drives the unit's value and financing, so it must be analyzed before deciding to sell or hold.

Selling a Home on Maui: Your Questions, Answered

Answers from Michael "Mick" St John, REALTOR® with Compass in Haiku, Maui (License RS-84410). Last reviewed July 2026. This is general information, not tax or legal advice. Confirm your numbers with your CPA.

What does it cost to sell a house on Maui?

Budget 6% to 8% of the sale price all in. That typically breaks down as: real estate commission (negotiable, and now negotiated separately with each side), Hawaii state conveyance tax, escrow fee, title insurance, a termite inspection, county and HOA document fees, any agreed repair credits, and prorated property taxes.

Hawaii's conveyance tax is a seller cost and it is tiered by price and by whether the buyer qualifies for a county homeowner exemption. It scales from a fraction of a percent at the low end up to well over 1% on high-value non-owner-occupied transfers, so on a luxury sale it becomes a real line item, not a rounding error.

What is HARPTA and will it apply to me?

HARPTA is the Hawaii Real Property Tax Act. If you are not a Hawaii resident, escrow is required to withhold 7.25% of the gross sales price at closing and send it to the State of Hawaii. That is withholding on the sale price, not on your profit, which is why so many out-of-state sellers are blindsided by it.

If you are a foreign person, FIRPTA stacks on top at 15% federal withholding, which puts combined withholding in the low-20s percent of gross. Both are refundable if you overpaid, but you only get it back by filing. You can also apply for a withholding waiver or reduced-withholding certificate before closing, which is the move most sellers miss. Start that early, not at signing.

Do I owe capital gains tax when I sell my Maui home?

If it was your primary residence for at least two of the last five years, you can generally exclude up to $250,000 of gain if single and $500,000 if married filing jointly, under IRS Section 121. Gain above that is taxable, and Hawaii taxes capital gains at the state level as well.

If it was an investment or rental property, Section 121 does not apply, but a 1031 exchange can defer the tax entirely if you set it up before closing. Once escrow releases funds to you, the 1031 door is closed. See our 1031 exchange FAQ.

How long does it take to sell a house on Maui right now?

The 2026 Maui market is not the 2021 Maui market. Well-priced, well-prepared homes in Upcountry, Haiku, Wailuku, and Kahului still move, but days on market have stretched and buyers are negotiating again. Inventory is up and interest rate pressure means the buyer pool at any given price point is thinner than it was.

Practically: expect 30 to 90 days to contract for a correctly priced home, plus 45 to 60 days to close if the buyer is financed. Overpriced homes on Maui do not "sell eventually," they sit, go stale, and then sell for less than they would have if priced right on day one.

Should I fix things before listing, or sell as-is?

On Maui, three things almost always pay for themselves: termite treatment, resolving obvious water intrusion or rot, and permit cleanup on additions. Buyers and their lenders will find those anyway, and finding them during inspection costs you more in renegotiation than fixing them costs you upfront.

Cosmetic renovation is a different question and usually not worth it. Paint, landscaping, and decluttering give you the return. A new kitchen typically does not.

Is the real estate commission negotiable on Maui?

Yes, and it always has been. Since 2024, listing side and buyer side compensation are negotiated separately, and any offer of buyer agent compensation is no longer published in the MLS. What matters is what your listing agreement actually says. Ask for it in writing, ask what you get for it, and ask what happens if a buyer comes unrepresented.

What is my Maui home worth?

Automated estimates (Zillow, Redfin) are consistently unreliable on Maui because our inventory is idiosyncratic: ag zoning, ohana units, catchment water, unpermitted space, ocean view premiums that swing six figures across one street. The algorithm cannot see any of that.

A real Maui valuation looks at genuinely comparable closed sales, current competing inventory, your property's permit and zoning reality, and your timeline. Request one at mick@stjohnhawaii.com or (808) 281-9530.

I own a Maui condo that was a vacation rental. Should I sell now?

That depends entirely on whether your unit is on the Minatoya list and which phase-out deadline applies. This is the single biggest value question on Maui right now and it deserves its own analysis, not a paragraph. See our Bill 9 and Minatoya list FAQ.

What is the first step to selling?

A conversation before a listing appointment. I want to know your timeline, your tax situation, whether you are non-resident (HARPTA), and whether you are buying again, because those four facts change the strategy more than anything about the house itself.

Reach Mick St John at (808) 281-9530 or mick@stjohnhawaii.com.