Budgeting for Closing Costs in Hawaii: Tips and Insights for 2024

In Hawaii, buyers can expect to pay closing costs ranging from 2% to 5% of the total purchase price. For a $600,000 home, this translates to $12,000 to $30,000 in closing costs. Factors such as loan type, home value, sale contingencies, and local laws influence the exact amount. Buyers can explore options like seller credits, lender negotiations, or no closing cost mortgages to manage these expenses.

On the other hand, sellers in Hawaii typically pay 8% to 10% of the home’s sale price in closing costs and agent commissions. For a $600,000 property, this amounts to approximately $48,000 to $60,000. The real estate agent commission, usually around 6% of the sale price, makes up the largest portion of this expense, with transfer taxes, prorated property taxes, and title fees accounting for the remaining costs.

Key Takeaways

  • Closing costs for buyers in Hawaii range from 2% to 5% of the purchase price, or $12,000 to $30,000 for a $600,000 home.
  • Loan type, home value, sale contingencies, and local laws impact the exact closing costs.
  • Buyers can reduce closing costs through seller credits, lender negotiations, or no closing cost mortgages.
  • Sellers in Hawaii typically pay 8% to 10% of the sale price in closing costs and agent commissions.
  • For a $600,000 home, sellers can expect to pay $48,000 to $60,000, with the real estate agent commission being the largest expense.

What Are Closing Costs?

Closing costs are expenses associated with finalizing a real estate transaction, paid by both the buyer and the seller. These costs are in addition to the purchase price of the property and cover various services, such as appraisals, inspections, title searches, and mortgage origination fees.

Also read: Georgia Closing Costs: What Home Buyers Need to Know

Different Types of Closing Costs

For Home Buyers

Home buyers in Hawaii typically encounter the following closing costs:

  • Loan origination fees
  • Appraisal fees
  • Home inspection fees
  • Title search and insurance
  • Escrow fees
  • Property taxes and homeowners insurance prorated to the closing date

For Home Sellers

Home sellers in Hawaii generally pay for the following closing costs:

  • Real estate agent commissions
  • Transfer taxes
  • Prorated property taxes and homeowners association fees
  • Mortgage payoff and closing fees
  • Title transfer fees

Who Pays Closing Costs in Hawaii

In Hawaii, both the buyer and the seller are responsible for paying specific closing costs. However, the exact distribution of these costs can be negotiated during the sale process. In some cases, the seller may agree to pay a portion of the buyer’s closing costs as a concession to facilitate the sale.

Who Pays Closing Costs on FSBO in Hawaii

In a For Sale By Owner (FSBO) transaction, the buyer and seller must negotiate and agree upon the allocation of closing costs. Without the guidance of real estate agents, it’s essential for both parties to familiarize themselves with the typical closing costs and work together to reach a mutually beneficial agreement.

How Much Are Closing Costs for Buyers in Hawaii

Buyers in Hawaii can expect to pay between 2% and 5% of the purchase price in closing costs. For example, if you purchase a home for $500,000, your closing costs could range from $10,000 to $25,000. However, the exact amount will depend on various factors, such as the type of loan, the lender, and the specific services required.

Here’s a table showing the estimated closing costs for buyers and sellers in Hawaii based on different home prices:

Home PriceBuyer Closing CostsSeller Closing Costs
$200,000$4,000 – $10,000$16,000 – $20,000
$300,000$6,000 – $15,000$24,000 – $30,000
$400,000$8,000 – $20,000$32,000 – $40,000
$500,000$10,000 – $25,000$40,000 – $50,000
$600,000$12,000 – $30,000$48,000 – $60,000
$700,000$14,000 – $35,000$56,000 – $70,000
$800,000$16,000 – $40,000$64,000 – $80,000
$900,000$18,000 – $45,000$72,000 – $90,000
$1,000,000$20,000 – $50,000$80,000 – $100,000

Please note that these figures are estimates based on the typical closing cost percentages for buyers (2-5%) and sellers (8-10%) in Hawaii. The actual closing costs may vary depending on factors such as the specific location, type of property, loan type, and negotiated terms between the buyer and seller.

Also read: The True Cost of Buying a Home in Connecticut: Closing Expenses

Factors Influencing Closing Costs in Hawaii

  • Home value: Higher prices mean higher closing costs.
  • Loan type: Conventional, FHA, VA loans have different costs.
  • Down payment: Lower down payments may increase some costs.
  • Credit score: Lower scores can result in higher fees.
  • Location: Costs vary by county and municipality.
  • Property type: Single-family homes, condos, and land have different fees.
  • Negotiated terms: Buyer and seller can negotiate cost-sharing.
  • Service providers: Prices for inspections, appraisals, and title services vary.

Tips for Reducing Closing Costs

  • Shop around for lenders and compare fees.
  • Negotiate with the seller to cover some costs.
  • Consider a no-closing-cost mortgage with a higher interest rate.
  • Schedule closing at the end of the month.
  • Ask for discounts on services like title insurance.
  • Avoid paying for points to lower your interest rate.
  • Get seller concessions for home repairs or upgrades.
  • Look for local and state assistance programs.

How to Avoid Paying Closing Costs When Buying a House

  • Negotiate with the seller to cover closing costs.
  • Choose a lender offering a no-closing-cost mortgage.
  • Get a gift from family or friends for closing costs.
  • Seek out down payment assistance programs.
  • Apply for closing cost assistance grants.
  • Ask the seller to provide a credit at closing.
  • Roll closing costs into your mortgage (if allowed).
  • Delay closing until you’ve saved enough for costs.

How to Calculate Closing Costs

  • Determine your loan amount and type.
  • Add up lender fees (origination, appraisal, etc.).
  • Calculate property-related fees (taxes, insurance, etc.).
  • Include title and settlement fees.
  • Consider any buyer or seller concessions.
  • Sum up all costs for an estimated total.
  • Consult your lender’s Loan Estimate for a precise breakdown.

Steps to Prepare for Closing

  • Review and compare your Loan Estimate and Closing Disclosure.
  • Gather necessary documentation (ID, proof of funds, etc.).
  • Schedule a final walk-through of the property.
  • Obtain a cashier’s check or arrange a wire transfer.
  • Review all documents carefully before signing.
  • Attend the closing meeting with your attorney or agent.
  • Bring your IDs, checks, and any required paperwork.
  • Receive your keys and celebrate your new home!

Also read: Closing Costs in Louisiana: A Buyers and Sellers Guide

How to Find a Trusted Real Estate Agent

  • Ask for referrals from friends, family, and colleagues.
  • Research agents online and read reviews.
  • Look for agents with local market expertise.
  • Check their credentials and professional designations.
  • Interview multiple agents to find the right fit.
  • Inquire about their communication style and availability.
  • Discuss their marketing strategy and track record.
  • Trust your instincts and choose someone you feel comfortable with.


Closing costs are an essential aspect of purchasing a home in Hawaii, and understanding these costs is crucial for both buyers and sellers. By familiarizing yourself with the various closing costs, factors that influence them, and strategies for reducing expenses, you can navigate the home buying process with confidence. Working with a trusted real estate agent and lender can further ensure a smooth and successful transaction. With proper preparation and knowledge, you’ll be well-equipped to handle closing costs and make your Hawaiian homeownership dreams a reality.

Frequently Asked Questions (FAQ)

Who pays most of the closing costs?

Buyers typically pay the majority of closing costs, which range from 2% to 5% of the purchase price in Hawaii. The exact amount depends on factors such as the loan type, home value, and local laws. However, buyers can negotiate with the seller or lender to reduce these costs through seller concessions, credits, or by choosing a no closing cost mortgage. However, sellers usually pay around 8% to 10%, with a significant portion going towards real estate agent commissions.

Who pays escrow fees in Hawaii?

A: In Hawaii, escrow fees are typically split 50/50 between the buyer and seller, although this can be negotiated during the transaction. Escrow companies handle the transfer of funds and documents between parties, ensuring a secure and smooth closing process. The exact cost of escrow fees varies based on the property’s value.

How much is a downpayment on a house in Hawaii?

Down payment requirements in Hawaii vary depending on the type of loan and the lender. Conventional loans typically require a minimum of 3% to 20% down, while FHA loans can be as low as 3.5%. For a median-priced home in Hawaii, which is around $600,000, a 20% down payment would be $120,000.

Who pays most of the closing costs?

Buyers in Hawaii generally pay the majority of closing costs, ranging from 2% to 5% of the purchase price. These costs include lender fees, appraisal fees, title insurance, and more. Sellers also pay closing costs, typically 8% to 10% of the sale price, with real estate commissions being the largest expense.

What are the highest closing costs?

The highest closing costs for buyers in Hawaii often include loan origination fees, title insurance, and prepaid items like property taxes and homeowners insurance. For sellers, the most significant closing cost is usually the real estate agent commission, which can be around 6% of the sale price.


Razib is a skilled writer with 5 years of experience specializing in technology, finance, automotive and real estate. A BBA graduate from 2014, Razib's passion for these industries shines through in his informative and engaging content. His ability to break down complex topics and stay current on the latest trends makes him a valuable resource for readers seeking to understand these dynamic fields.

Related Articles