Closing costs are one of the most overlooked expenses when buying a home in Hawaii. While most buyers focus on the purchase price and down payment, closing costs can add thousands of dollars to your total out-of-pocket expense. On Oahu, closing costs typically range from two to five percent of the purchase price. On a home priced at 800,000 dollars, that could mean 16,000 to 40,000 dollars in additional fees. The good news is that many of these costs are negotiable.

Closing costs include all the fees associated with finalizing your home purchase. Common closing costs in Hawaii include escrow fees, title insurance, lender fees, appraisal fees, home inspection costs, property taxes, homeowners insurance, and recording fees. In Hawaii, the escrow company handles the closing process rather than an attorney.

One of the most effective strategies is to ask the seller to contribute toward your closing costs through a seller concession. Shop around for service providers since you are not required to use your lender's preferred title company or escrow service. Ask your lender about no-closing-cost loan options. Negotiate directly with your lender on origination fees and processing fees.

Hawaii charges a conveyance tax on all real estate transfers, typically paid by the seller. Condo buyers may face additional costs related to HOA document review fees and association transfer fees. Military buyers using VA loans have specific protections that limit closing costs. Kristy and Austin Home Group works with buyers every day to minimize closing costs and negotiate the best possible terms on Oahu.