There’s no question there has been record home value appreciation across the entire country and the state of Hawai`i must be in the top five markets. In areas across our entire state, we’ve seen anywhere from 17% appreciation to 40% appreciation. It’s been remarkable. Homeowners are delighted at how much equity they have gained in their house, but there is a downside to all of that, namely in the form of property taxes.
You see, the tax season has begun, and the counties are getting their property tax assessments out in the mail. If you own real estate in Hawai`i, then you will soon be receiving a notice on exactly how much your property assessment has risen. This is bad news because the increased home value goes together with an increase in assessments. Many people are going to wake up to the fact that their property taxes, in some cases, have almost doubled.
In addition, the 2022 legislative session has begun, and lawmakers are starting to put together bills to introduce more taxes. One of the tax proposals being considered is a tax on second homes that are vacant or not being used. Now I’m not sure how that’s all going to shake out or what the wording is yet in the bill or even if it will get passed. I’m sure this will not be the only measure they’ll consider over the legislative session. We are keeping an eye on all legislative proposals and how they may affect our clients. The Hawai`i team will keep you updated on what gets passed and then eventually signed by the governor.
With that said, this is also the time of year when people start discussing selling their property in Hawai`i. You see, they get their tax bill in the mail, and they start questioning whether they’re really using that second home enough and whether they want to continue to pay the taxes, fees, and maintenance to go along with it. If this is you, and you’re thinking about selling your home, cashing out that equity and the appreciation you’ve gotten in the last 12 to 24 months… then let’s talk. We are happy to discuss how you can cash out, minimize tax consequences and do so in a smooth and hassle-free manner. We have done this over 1,200 times and have a proven system that nets you the highest price in the shortest amount of time.
Shout Out to KW Luxury
Keller Williams luxury agents around the country are by far the world’s largest sales force. The 2021 numbers are in, and Keller Williams luxury agents helped people buy and sell 58,000 luxury properties around the US. That totaled $98 billion in sales volume with more than 23,000 agents selling a home over $1 million. Those numbers simply blow away all the other competition. In fact, if you look at the 180,000 Keller Williams agents around the country, you’ll see Keller Williams sells $1 billion dollars of real estate every day of the year.
So, you may be asking the question, how does this pertain to me?
If you’re selling a home in Hawai’i, you want access to buyers in the top 10 feeder markets for Hawai`i. Keller Williams has more offices in those top 10 feeder cities than any other brokerage firm on the planet. Not only do we have offices there, but Chris and I have developed deep relationships with the top luxury agents in all those cities. So, in our marketing, when we tell people that we have the buyers… it’s true!
If you’re buying a home in Hawai`i or anywhere else in the country for that matter, don’t worry, we’ve got a top KW agent in every city and in every town in the US. Just in our luxury division alone last year we shared almost 8,000 referrals between KW agents. Go Big Red!
What are your real estate goals and plan for 2022? We would love to hear them.
Dan Polimino is the owner of the Hawai`i Team in Kailua-Kona, Hawai`i. He and his team are the luxury residential experts for the Big Island. If you are thinking about buying or selling in Hawai`i, then please reach out to us at team@thehawaiiteam.com or call 808-913-0899.
