How to Sell Hawaii Land Held in a Trust in 2026

Owning land in Hawaiʻi can feel like holding a piece of paradise—but selling that land gets more complex when a trust owns the property. Today’s buyers expect clean documentation, transparent pricing, and a fast, digital-first transaction process. Trustees also face strict fiduciary obligations, Hawaiʻi-specific land customs (including leasehold), and a market shaped by limited supply and high demand.

At the national level, farm real estate values continue to climb: the U.S. average reached $4,350 per acre in 2025, up 4.3% (or $180 per acre) from 2024, according to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary. Hawaiʻi’s land dynamics are even more distinctive because so much property is concentrated among government and large legacy owners, and because residential valuations strongly influence buyer expectations across the market.

Understanding Hawaiʻi’s Land Market in 2026

Hawaiʻi is a small state with outsized property values—and a land ownership structure that can directly affect how you position and sell trust-held land.

• Statewide, the combined gross valuation of property reached $517 billion in fiscal year 2023–2024, according to Hawaii Department of Business, Economic Development & Tourism (DBEDT).
• Residential property value totaled $387.7 billion—about 75% of the statewide total—per Hawaii Department of Business, Economic Development & Tourism (DBEDT).
• The average home value in Hawaiʻi is $816,383 as of 2026, down 2.2% year over year, according to the Zillow Home Value Index.
• The median price of single-family homes hit $950,000 in 2024, up 6% from 2023, according to Honolulu Civil Beat.

Ownership concentration is also a defining feature of Hawaiʻi real estate. The State of Hawaiʻi owns 1,590,061.1 acres, making it the largest landowner, according to Hawaii Department of Business, Economic Development & Tourism (DBEDT). By comparison, private entities own 1,107,513.5 acres, per DBEDT. Large private landholders can shape regional comparables and buyer strategy too—for example, Parker Ranch holds 204,748.3 acres as the second largest landowner in the state, according to DBEDT.

For agricultural and rural parcels, pricing and buyer interest often connect to income potential. In 2025, cropland cash rents in Hawaiʻi were $295 per acre, among the highest in the U.S., according to American Farm Bureau Federation Market Intel. At the same time, cropland cash rents in Hawaiʻi declined by more than 5% in 2025, per American Farm Bureau Federation Market Intel. That mix—high rents but recent softening—matters when you market land as an income-producing asset inside a trust.

Selling Land Held in a Trust: What Changes (and What Doesn’t)

A trust is a legal arrangement where a trustee manages assets for beneficiaries. If the trust owns Hawaiʻi land, the trustee usually signs the listing agreement, purchase contract, and closing documents. The trustee must also follow the trust’s instructions and meet a fiduciary duty to act in the beneficiaries’ best interests.

The fundamentals of a land sale still apply—pricing, marketing, negotiation, escrow, and deed transfer—but selling from a trust adds a compliance layer: authority, approvals, documentation, and careful recordkeeping.

How to Sell Hawaiʻi Land in a Trust: Step-by-Step

1) Review the trust document for authority to sell

Start by confirming the trustee’s powers and any sale restrictions. Look for:

• Explicit authority to sell or convey real property
• Beneficiary notice or consent requirements
• Co-trustee signature rules
• Instructions for distributing proceeds
• Limits on pricing, timing, or acceptable buyer types

2) Identify required approvals before you go to market

Some trusts require beneficiary consent; others allow the trustee to sell independently. In certain disputes or special situations, court involvement may be necessary. Build these timelines into your plan early so they don’t derail escrow later.

3) Price the land using Hawaiʻi-specific comparables and use cases

Trustees should support pricing with evidence. A strong valuation file often includes:

• A land appraisal from a Hawaiʻi-experienced appraiser
• Local land comps segmented by zoning, access, water, and topography
• Income indicators when applicable (such as lease potential and cash rent context)

Use both macro and local signals to set expectations. Nationally, farm real estate averaged $4,350 per acre in 2025, up 4.3% (or $180 per acre) from 2024, according to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary. In Hawaiʻi, cropland cash rents reached $295 per acre in 2025 but declined by more than 5% the same year, according to American Farm Bureau Federation Market Intel. These data points help trustees and buyers discuss value with more clarity—especially when the land’s best use is agricultural, conservation, or a long-term hold.

4) Prepare the property and documentation buyers will request

Even raw land sells faster when you reduce uncertainty. Consider:

• Survey, boundary marking, and access confirmation
• Title review (including easements, encroachments, and historical conveyances)
• Zoning, permitted uses, and any Special Management Area (SMA) or shoreline considerations
• Water availability, utilities, and any prior environmental studies
• Leasehold vs. fee simple status and any lease terms (if applicable)

5) Build a marketing strategy that matches land buyers in 2026

Land buyers search differently than home buyers. A high-performing land listing typically includes:

• Clear use-case positioning (ag, conservation, residential potential, or legacy hold)
• Maps (tax map key/TMK context), topo overlays, and access photos
• Disclosure-ready facts: zoning, flood/volcano zones where relevant, utilities, and known constraints
• Distribution across major listing platforms plus targeted outreach to local agents who specialize in land

Anchor your story in real market context. Hawaiʻi’s broader property valuation reached $517 billion in FY 2023–2024, with $387.7 billion in residential value (about 75% of the total), according to Hawaii Department of Business, Economic Development & Tourism (DBEDT). Buyers also track housing signals: the average home value is $816,383 as of 2026 (down 2.2% year over year) per the Zillow Home Value Index, while the median single-family home price reached $950,000 in 2024 (up 6% from 2023) per Honolulu Civil Beat. These indicators shape buyer psychology—even when you’re selling land rather than a finished home.

6) Evaluate offers through a fiduciary lens

Trustees should compare offers based on more than price. Consider:

• Certainty of closing (cash vs. financing, contingencies, inspection timelines)
• Feasibility of buyer’s intended use under zoning and regulatory limits
• Net proceeds after commissions, escrow fees, surveys, and required cures
• Risk of delay (permits, access disputes, or title complexities)

Some trustees choose a faster, simpler exit by selling to a land-buying company for cash. That route can trade top-dollar pricing for speed and convenience, which may fit certain trust objectives (for example, distributing funds promptly or avoiding ongoing carrying costs). If you pursue this option, document why the terms align with beneficiary interests and the trust’s instructions.

7) Manage escrow, title, and trust compliance

After accepting an offer, coordinate closely with escrow and legal counsel. Typical tasks include:

• Confirming the trustee’s signing authority and providing trust certification/required excerpts
• Clearing title issues and finalizing the vesting/vesting deed language
• Completing required disclosures and responding to buyer due diligence
• Keeping written records of trustee decisions and communications

8) Close the sale and distribute proceeds properly

At closing, escrow records the deed and disburses funds. The trustee then follows the trust document to:

• Pay liens, taxes due, and closing costs
• Cover permitted trustee fees and professional expenses
• Distribute remaining proceeds to beneficiaries as directed

Common Challenges When Selling Trust-Held Land in Hawaiʻi

Regulatory and zoning complexity

Hawaiʻi land use rules can be strict and highly localized. Buyers often scrutinize zoning, conservation/district constraints, shoreline rules, and permitted development pathways before committing.

Environmental diligence

Because Hawaiʻi ecosystems are sensitive, buyers may request environmental assessments, drainage information, and documentation about prior uses—especially for agricultural, rural, or near-shore parcels.

Cultural and historical sensitivity

Cultural and historical context can affect access, development feasibility, and buyer perceptions. Trustees benefit from respectful, accurate positioning and professional guidance where appropriate.

Market pricing signals can diverge by segment

Residential indicators may not move in sync with agricultural or vacant land. For example, the Zillow Home Value Index shows the average home value at $816,383 in 2026 with a 2.2% annual decline, while Honolulu Civil Beat reports the median single-family price rose to $950,000 in 2024, up 6% from 2023. For farm and rural strategies, rent metrics matter too: Hawaiʻi cropland cash rents were $295 per acre in 2025 yet fell by more than 5%, according to American Farm Bureau Federation Market Intel.

Alternatives to a Traditional Open-Market Sale

Sell for cash to a land-buying company

A cash buyer can reduce timelines and eliminate financing risk, which may help a trust that needs liquidity quickly. This approach often produces a lower price than a fully marketed listing, so document the rationale and how it serves beneficiary interests.

Lease the land for income

If the trust can hold the asset, leasing may generate ongoing revenue. Hawaiʻi’s $295 per acre cropland cash rent level in 2025—among the nation’s highest—illustrates why some trustees consider income strategies, even though rents declined by more than 5% that year, according to American Farm Bureau Federation Market Intel.

Improve or entitle before selling

In some cases, targeted improvements (surveying, access clarification, utility planning) or entitlement work can increase marketability. Trustees must confirm the trust allows this and weigh cost, timeline, and risk.

Final Thoughts

Selling Hawaiʻi land held in a trust is a legal process and a market process. You need clear trustee authority, clean documentation, and a pricing strategy grounded in real data. Hawaiʻi’s high valuations and concentrated ownership—such as the State of Hawaiʻi’s 1,590,061.1 acres, private entities’ 1,107,513.5 acres, and Parker Ranch’s 204,748.3 acres, per Hawaii Department of Business, Economic Development & Tourism (DBEDT)—make local expertise especially valuable.

Whether you list traditionally or pursue a faster cash sale, the trustee’s job stays the same: act in the best interests of the beneficiaries, follow the trust document, and support decisions with a clear record. When you combine trust compliance with Hawaiʻi-specific market knowledge, you can sell confidently—and close with fewer surprises.