You found the perfect house in Ewa Beach, your offer was accepted, and your mortgage is approved. Then your lender sends over the closing disclosure, and you see a line-item list of fees totaling thousands of dollars more than you expected. What are all these charges? Who pays for what? And is any of this negotiable?
⚡ Quick Take
- Buyers should budget 1--3% of the purchase price for closing costs; sellers should expect 6--8% (mostly agent commissions) (Source: Honolulu Board of Realtors, Feb 2026)
- On the Oʻahu median of $1,122,500, seller closing costs run $67,350--$89,800 — agent commissions alone eat the biggest slice
- Hawaii's conveyance tax is a sliding scale from $0.10 to $1.25 per $100 of sale price — the more your home is worth, the higher the rate (Source: Hawaii Bureau of Conveyances, 2026)
- VA buyers can potentially close with near-zero out of pocket if the seller covers closing costs — see our first-time buyer guide
- Think of closing costs like the plate-lunch sides — the entrée (your home price) gets all the attention, but the mac salad and rice (escrow, title, taxes) add up fast
Closing costs catch a lot of buyers and sellers off guard — especially in Hawaii, where some fees are unique to the state. After helping hundreds of families buy and sell on Oʻahu, we break down every dollar so there are no surprises at the closing table.
Closing Costs Overview: Buyer vs. Seller
Here is the big picture before we get into the details:
| Buyer | Seller | |
|---|---|---|
| Typical total | **2–5% of purchase price** | **6–8% of sale price** |
| On a $700,000 home | **$14,000–$35,000** | **$42,000–$56,000** |
| On a $1,122,500 home (median) | **$22,450–$56,125** | **$67,350–$89,800** |
| Biggest single cost | Loan origination / points | Agent commissions |
(Source: Honolulu Board of Realtors, Feb 2026)
For buyers, closing costs are made up of many smaller charges that add up to a meaningful total. For sellers, the costs are dominated by one bigger item: agent commissions. We always walk both buyers and sellers through a full cost estimate before any offer is written so everyone goes into the transaction with clear eyes.
Sellers pay significantly more because the real estate agent commissions — typically 5–6% of the sale price — come out of the seller's proceeds at closing. Buyers' costs are mostly lender fees, escrow charges, and prepaid items.
Buyer Closing Costs: Line by Line
Loan Origination Fee
0.5–1% of the loan amount. This is the lender's fee for processing your mortgage. On a $630,000 loan (for a $700K home with 10% down), that is $3,150–$6,300. Some lenders charge a flat fee instead. Shop around — this is negotiable.
Appraisal Fee
$500–$800. The lender requires an independent appraisal to confirm the home is worth what you are paying. Hawaii appraisals run slightly higher because of the smaller pool of licensed appraisers on the island.
Credit Report Fee
$30–$50. A minor cost, but it shows up on your closing disclosure.
Title Search and Title Insurance
$600–$1,500 for the search and $1,000–$3,000 for lender's title insurance. Title insurance protects the lender (and optionally you) against ownership disputes, liens, or errors in the title history. In Hawaii, where land ownership has a complex history involving former kingdoms, trusts, and leasehold interests, title insurance is essential.
Owner's title insurance is optional but recommended. It is a one-time premium that protects you for as long as you own the home.
Escrow Fee
$1,000–$2,500, typically split between buyer and seller. In Hawaii, all real estate closings go through an escrow company. The escrow officer holds funds, coordinates document signing, and ensures everything is recorded properly.
Property Tax Prorations
The seller has either prepaid or owes property taxes up to the closing date. You will be credited or debited accordingly. Hawaii property taxes are billed twice a year (August and February). Your escrow officer will calculate the exact proration.
Prepaid Interest
You will owe interest from your closing date to the end of that month. If you close on the 15th of a 30-day month, that is 15 days of prepaid interest. On a $630,000 loan at 6.5%, that is roughly $68/day or $1,020 for 15 days.
Homeowner's Insurance Premium
$1,200–$3,600/year, paid upfront for the first year at closing. Your lender requires proof of insurance before funding the loan. Hawaii insurance costs vary by location — homes in flood zones or near the coast pay more.
Escrow Reserves (Impound Account)
Your lender may require 2–6 months of property taxes and insurance held in an escrow account as a buffer. This can add $2,000–$5,000 to your closing costs.
Recording Fees
$50–$200. The county charges a fee to record the deed and mortgage documents. Standard administrative cost.
VA Funding Fee (VA Loans Only)
2.15% for first-time use with $0 down. On a $700,000 VA loan, that is $15,050. This can be rolled into the loan amount so you do not pay it out of pocket. Exempt for veterans with service-connected disabilities. See our VA loan guide for complete details.
Mortgage Insurance (FHA/Conventional)
FHA loans include an upfront mortgage insurance premium of 1.75% of the loan amount, plus monthly premiums. Conventional loans with less than 20% down include PMI of $150–$400/month. Neither applies to VA loans.
Buyer Closing Costs Summary Table
| Fee | Estimated Cost |
|---|---|
| Loan origination | $3,150–$6,300 |
| Appraisal | $500–$800 |
| Credit report | $30–$50 |
| Title search + insurance | $1,600–$4,500 |
| Escrow fee (buyer's half) | $500–$1,250 |
| Property tax proration | Varies |
| Prepaid interest | $500–$2,000 |
| Homeowner's insurance (1 yr) | $1,200–$3,600 |
| Escrow reserves | $2,000–$5,000 |
| Recording fees | $50–$200 |
| **Total buyer closing costs** | **$14,000–$35,000 on $700K** |
(Source: Honolulu Board of Realtors, Feb 2026)
On a $700,000 purchase, your closing costs as a buyer are typically in the $14,000–$21,000 range. The biggest chunks are title insurance, escrow reserves, and your lender's origination fee. None of these are optional, but some are negotiable — especially the origination fee, and we always negotiate on your behalf where we can.
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(808) 927-0508Seller Closing Costs: Line by Line
Real Estate Agent Commissions
5–6% of the sale price, split between the listing agent and the buyer's agent. On the Oʻahu median of $1,122,500, that is $56,125–$67,350. This is the single largest closing cost for sellers.
Commissions are negotiable, though most Oʻahu agents charge within this standard range. Discounting too aggressively can reduce the marketing and buyer agent cooperation your home receives.
Hawaii Conveyance Tax
This is Hawaii's version of a transfer tax, and it is the seller's responsibility. The rate depends on the sale price and whether the property is owner-occupied or an investment:
| Sale Price | Owner-Occupied Rate | Investment Rate |
|---|---|---|
| Under $600,000 | 0.10% | 0.15% |
| $600,000–$999,999 | 0.20% | 0.25% |
| $1,000,000–$1,999,999 | 0.30% | 0.40% |
| $2,000,000–$3,999,999 | 0.50% | 0.60% |
| $4,000,000–$5,999,999 | 0.70% | 0.80% |
| $6,000,000+ | 1.00% | 1.25% |
(Source: Hawaii Bureau of Conveyances, 2026)
The conveyance tax is a sliding scale — the more expensive the home, the higher the percentage. On the Oʻahu median, it is a manageable $3,367. On luxury properties it climbs more steeply, so we always factor it into the full cost picture for sellers.
On the Oʻahu median home of $1,122,500 (owner-occupied), the conveyance tax would be $3,367.50 (0.30%).
Escrow Fee
$1,000–$2,500, with the seller typically paying half. Same escrow company handles both sides of the transaction.
Title Insurance (Owner's Policy)
In many Hawaii transactions, the seller pays for the buyer's owner's title insurance policy. This costs $1,000–$3,000 depending on the purchase price. This is sometimes negotiable.
HARPTA / FIRPTA Withholding
Hawaii Real Property Tax Act (HARPTA) requires a 7.25% withholding of the sale price if the seller is a non-resident of Hawaii. FIRPTA requires a 15% withholding if the seller is a foreign person. If you are a Hawaii resident selling your primary home, neither applies.
If either does apply, the withholding is deposited with the state/IRS and credited against your actual tax liability when you file your return.
Remaining Mortgage Payoff
Not technically a closing cost, but the remaining balance on your mortgage is paid from the sale proceeds at closing. Make sure you know your payoff amount — it may differ from your statement balance.
Repairs and Credits
If the buyer's home inspection revealed issues, you may have agreed to make repairs or provide a credit. These are settled at closing.
Property Tax Prorations
Similar to the buyer's side — taxes are prorated so each party pays their fair share up to the closing date.
Seller Closing Costs Summary Table
| Fee | Estimated Cost on $700K Sale |
|---|---|
| Agent commissions (5–6%) | $35,000–$42,000 |
| Conveyance tax | $1,400 (0.20%) |
| Escrow fee (seller's half) | $500–$1,250 |
| Title insurance (owner's policy) | $1,000–$3,000 |
| Repairs / credits | Varies |
| Property tax proration | Varies |
| **Total seller closing costs** | **$42,000–$56,000 on $700K** |
(Source: Honolulu Board of Realtors, Feb 2026)
On a $700,000 sale, you will see roughly $42,000--$56,000 in closing costs before your net proceeds. Agent commissions are the largest piece — everything else is smaller by comparison. We always present a full net sheet so sellers know exactly what they will walk away with before listing.
How to Reduce Your Closing Costs
For Buyers:
Negotiate seller concessions. Sellers can contribute toward your closing costs — up to 3% on conventional loans with less than 10% down, 6% with 10%+ down, and 4% on VA loans. We build this into our offer strategy.
Shop your lender. Loan origination fees, rates, and points vary significantly between lenders. Get quotes from at least three. A difference of 0.25% in origination fees saves you $1,575 on a $630K loan.
Ask about lender credits. Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate. If you plan to sell or refinance within 5 years, this can be a smart trade.
Close at the end of the month. Prepaid interest is calculated from closing day to month-end. Closing on the 28th means 2–3 days of prepaid interest instead of 15–20 days.
For Sellers:
Price your home correctly from the start. Overpriced homes sit on the market, leading to price reductions and eventually selling below where they would have if priced right initially. Properties on Oʻahu currently average 27 days on market — proper pricing gets you there faster. Read our guide on selling your Oʻahu home fast.
Negotiate commission with transparency. Discuss commission structure with your agent upfront. Understand what services are included — professional photography, staging consultation, digital marketing, and negotiation expertise all have value.
Handle repairs before listing. Pre-listing inspections and repairs avoid last-minute negotiation credits. Fixing a $2,000 issue before listing is cheaper than giving a $5,000 credit during negotiations.
What This Means for Buyers
Closing costs are the part of homebuying that nobody posts about on Instagram — but they determine how much cash you actually need at the table. On Oʻahu, budget 1--3% of the purchase price on top of your down payment. If you are a first-time buyer, negotiate seller concessions into your offer — up to 3--6% depending on your loan type. VA buyers have the strongest position here: zero down payment, no PMI, and the ability to ask sellers to cover closing costs. That combination is rare anywhere in the country, let alone on an island where the median home costs over a million dollars.
What This Means for Sellers
Your closing costs are dominated by agent commissions, and there is no sugar-coating it — $56,000--$67,000 on the Oʻahu median is a significant number. But that commission buys professional marketing, negotiation expertise, and buyer agent cooperation that directly affects your final sale price. The sellers who try to save on commissions often lose more in final sale price than they save in fees. Price your home right, stage it well, and understand every line item on your closing disclosure before you sign. For a full breakdown of what selling costs, see our cost to sell guide.
Frequently Asked Questions
Who pays closing costs in Hawaii — the buyer or seller?
Both parties pay closing costs, but they pay different things. Buyers pay lender fees, title insurance, prepaid items, and escrow fees — typically 2–5% of the purchase price. Sellers pay agent commissions, conveyance tax, and their portion of escrow and title fees — typically 6–8% of the sale price. The exact split is outlined in the purchase contract and can be negotiated.
Can closing costs be rolled into the mortgage?
VA loans allow you to roll the VA funding fee into the loan amount. Some lenders offer "no-closing-cost" loans where fees are rolled into a higher interest rate. FHA loans let you finance the upfront mortgage insurance premium. However, you generally cannot roll escrow fees, title insurance, and prepaid items into a conventional loan. Seller concessions are the most effective way to reduce out-of-pocket closing costs.
What is the Hawaii conveyance tax and who pays it?
The conveyance tax is Hawaii's real estate transfer tax, paid by the seller at closing. Rates range from 0.10% to 1.25% based on the sale price and whether the property is owner-occupied or an investment. On a $700,000 owner-occupied home, the conveyance tax is $1,400. On a $1,122,500 home, it is $3,367.50. This is specific to Hawaii — not all states have a transfer tax.
How much cash do I need at closing as a buyer?
Your total cash needed includes your down payment plus closing costs minus any seller concessions. For example: buying a $600,000 home with 10% down and 3% closing costs, your total out of pocket is roughly $60,000 + $18,000 = $78,000, minus any credits. VA buyers can potentially close with minimal cash if the seller covers closing costs. We map out exact numbers for every client before you make an offer.
Are closing costs tax deductible?
Some closing costs are tax deductible. Property taxes paid at closing are deductible. Mortgage interest (including prepaid interest) is deductible. Mortgage points may be deductible in the year paid. However, title insurance, escrow fees, and agent commissions are generally not deductible for buyers (sellers can deduct commissions as a selling expense). Consult a tax professional for your specific situation — we are real estate experts, not tax advisors.
When do I receive my closing disclosure?
Federal law requires your lender to send the closing disclosure at least 3 business days before your closing date. This document shows every fee, the final loan amount, your interest rate, and your total cash needed at closing. Review it carefully and compare it to your original loan estimate — if any numbers changed significantly, ask your lender to explain before you sign. We review the closing disclosure with every client to make sure there are no surprises.
Know the Numbers Before You Sign
Closing costs should never be a surprise. Whether you are buying your first condo or selling a home you have owned for 20 years, understanding every line item puts you in control of the transaction.
We walk every client through their estimated closing costs before they make an offer or list their home. No surprises, no hidden fees, just complete transparency. Contact us to get a personalized closing cost estimate for your situation.