What Should I Know About Big Island Real Estate Listings?

If you’re considering buying or investing in property on Hawaii’s Big Island, it’s essential to understand the unique aspects of this dynamic real estate market. Here’s a FAQ-style guide to help you navigate Big Island real estate listings effectively.

1. What Are the Key Regions on the Big Island?

The Big Island, or Hawai’i Island, has diverse regions, each offering a unique lifestyle and property types:

• Kona (West Coast): Known for sunny weather, beaches, and luxury homes.
• Hilo (East Coast): Offers lush greenery, more affordable housing, and a laid-back vibe.
• Kohala Coast: Features high-end resorts and exclusive gated communities.
• Puna District: A mix of affordability and off-grid living, often surrounded by tropical rainforests.
• Waimea (Upcountry): A cooler climate with ranch properties and farm-to-table living.

2. Are There Any Unique Zoning or Land Use Laws?

Yes! Hawaii’s zoning laws are distinct, and properties may fall under:

• Conservation Land: Limits on construction and land use.
• Agricultural Land: Ideal for farming but may have restrictions on building structures.
• Residential Zoning: More conventional for homes, but regulations on size and setbacks still apply.

Always check local zoning laws before purchasing.

3. What Are Lava Zones, and Why Do They Matter?

The Big Island is home to active volcanoes, so properties are categorized into lava zones based on volcanic activity risk:

• Zones 1 & 2: High risk, with fewer insurance and financing options.
• Zones 3-9: Lower risk and more attractive for buyers.

Understand the zone of your prospective property, as it affects insurance costs and availability.

4. Are There Special Considerations for Off-Grid Properties?

Yes. Many Big Island properties rely on:

• Catchment Water Systems: Rainwater collection instead of municipal water.
• Solar Power: A popular choice for electricity.
• Septic Systems: Common due to limited public sewage infrastructure.

These systems require upkeep and additional costs.

5. How Does Leasehold Property Differ From Fee Simple?

Hawaiian real estate includes two primary types of ownership:

• Fee Simple: Full ownership of the land and structure.
• Leasehold: You own the building but lease the land, often for a set term (e.g., 50-100 years). Be aware of lease rent and expiration dates.

6. Is the Market Competitive?

Yes! The Big Island attracts a wide range of buyers, from local families to international investors. Factors like desirable locations, proximity to beaches, and unique property features can make the market highly competitive. Be prepared to act quickly when you find the right listing.

7. What’s the Price Range for Properties?

Prices vary widely based on location, size, and amenities:

• Luxury Homes (Kohala & Kona): $1M to $10M+
• Mid-Range Homes (Hilo & Waimea): $400K to $1M
• Affordable Options (Puna): $200K to $500K

Be sure to account for additional costs like property taxes and homeowners’ association fees.

8. Are There Vacation Rental Opportunities?

Yes, vacation rentals are a popular investment, but they come with regulations:

• Short-Term Vacation Rental (STVR) Permit: Required for homes outside resort zones.
• Compliance with county regulations is a must. Failure to follow rules can lead to fines or revoked permits.

9. Do I Need a Local Real Estate Agent?

Absolutely! A local agent understands the nuances of Big Island real estate, from navigating lava zones to ensuring compliance with zoning laws. They’ll also help you negotiate and manage transactions efficiently.

10. What Are Closing Costs Like?

Expect to pay 2-5% of the purchase price in closing costs, which may include:

• Title insurance
• Escrow fees
• Property inspections
• Appraisal fees

Final Thoughts

Big Island real estate is as diverse and unique as the island itself. By understanding the landscape, zoning laws, and local customs, you can make informed decisions about your property purchase.

Ready to dive in? Contact a trusted real estate professional to explore your dream Big Island home today!