Do you have to disclose past fire damage in Hawaii?
In most states a seller must disclose known material defects — and fire or smoke damage qualifies, even if repaired. Hawaii's exact disclosure form and rules vary, so confirm what you must disclose with a Hawaii real-estate attorney; the safe move is always to disclose the fire.
Can you sell a fire-damaged house as-is in Hawaii?
Yes — damaged houses are routinely sold as-is, which lets you sell without promising repairs. An as-is clause does not, however, let a seller hide a known defect, so disclose the fire and sell as-is.
Who controls the insurance money?
If the home has a mortgage, your lender is typically named as loss payee on the fire policy and has rights to the claim proceeds — usually directing them toward repairs or the loan balance rather than a free check. That's a big reason a straightforward cash sale can beat fighting the carrier and servicer over a repair escrow.
The Hawaii figures behind a fire or storm sale
- Median sale price
- $741,000 (Redfin state market tracker, May 2026)
- Property tax while it sits
- ~0.28% a year (#51 highest of the 50 states and D.C.), about $173 a month on a median-priced home, owed whether or not anyone can live in it
- Cost of a traditional sale
- about $49,721 on the median: $40,829 commission (5.51%) + $7,410 closing costs + $1,482 transfer tax
- Transfer tax rule
- Conveyance tax ranges from $0.15 to $1.25 per $100 depending on property value. Seller pays.
- Market clock
- 86 days median to go under contract once listed (Redfin state market tracker, May 2026)
- Closing custom
- title or escrow closings are standard in Hawaii
The bills keep coming after the fire
The fire stops the living, not the costs. Property tax in Hawaii runs about 0.28% of value a year, the #51 highest rate in the country, which is roughly $173 a month on a median-priced home. Add the mortgage payment, coverage on a house that may now be rated vacant, and utilities, often on top of rent somewhere else. Repairs done, the market adds its own wait: about 86 days median to contract in Hawaii (Redfin state market tracker, May 2026), about $489 of tax over that stretch.
What a repaired Hawaii house nets after selling costs
Say the repairs go well and the house lists at the Hawaii median, about $741,000 (Redfin state market tracker, May 2026). The sale still costs about $49,721: $40,829 of commission (5.51%), $7,410 of closing costs and about $1,482 of transfer tax. That leaves about $691,279, and the rebuild, the months of carry and any mortgage balance come out of it. An as-is sale skips the rebuild; the honest comparison is net against net.
Unpaid taxes on a damaged house in Hawaii
Mail to a burned-out house often goes unread, and that is how tax arrears start. Real property tax is administered by the four counties. Under the pattern of HRS §246-60 (carried into county codes), after a tax sale the owner may redeem within 1 year of the sale (or of late deed recording) by paying the sale amount plus the purchaser's costs plus 12% per-annum interest. Mechanics vary by county (Honolulu, Maui, Hawai'i, Kaua'i) — confirm with your county's real property tax office. (HRS §246-60; county real property tax ordinances) Those dates are set by statute and enforced by the county, so check where the property stands with the county treasurer before deciding how, or how fast, to sell.
The honest math on a fire-damaged Hawaii house
Between an insurance holdback, a lender-controlled claim check, and Hawaii property taxes (~0.28%/yr) that keep running on a home nobody can occupy, a fire-damaged house bleeds money and time while you wait on adjusters and contractors.
The real comparison is a clean as-is cash sale — disclosed, closed in days — against months of repair coordination for a house you may not want to keep.
