Hawaii Real Estate Commissions: What You Can Expect in 2024
Whether you’re purchasing a home or selling one, understanding how real estate commissions work is a crucial aspect of the process in Hawaii. In 2024, new rules were put in place to increase transparency and improve communication regarding real estate commissions. These changes are designed to give both buyers and sellers more clarity and control over the costs associated with their transactions.
This guide will help explain the basics of real estate commissions in Hawaii and how they can affect your next home sale or purchase, whether you’re new to the market or a seasoned participant.
Current state of the Hawaii housing market
Before diving into the details of real estate commissions, it’s helpful to look at how Hawaii’s housing market is performing:
Median Home Sale Price
$783,200
Housing Supply
6,878 (+29.8% YoY)
Homes Sold Above List Price
21.6% (-4.2 pts YoY)
Understanding real estate commissions in Hawaii
What are real estate commissions?
Real estate commissions are the fees paid to agents for their assistance in buying or selling a property. Typically, these commissions are calculated as a percentage of the final sale price and are paid at closing.
Who pays the commission?
Traditionally, the seller has been responsible for covering both their own agent’s fees as well as the buyer’s agent’s fees. However, starting on August 17, 2024, buyers are now required to sign an agreement that outlines their agent’s fees before starting home tours.
Although buyers can still negotiate with the seller to cover their agent’s commission, the amount is now more flexible and can be negotiated during the offer process.
Average real estate commission rates in Hawaii
Commission rates vary based on individual negotiations and the specific details of the transaction. Factors such as the location of the property, the local market, and the services the agent offers can influence the commission. Below is an example of commission costs in some of Hawaii’s major cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Honolulu
$580,000
$8,700
$17,400
$29,000
East Honolulu
$1,625,000
$24,375
$48,750
$81,250
Pearl City
$775,000
$11,625
$23,250
$38,750
At Redfin, we strive to offer competitive rates, with listing fees for sellers starting as low as 1%*. While buyer fees can differ based on location, our goal is to keep our rates competitive so your offer stands out in the market.
Can you negotiate real estate commissions in Hawaii?
Yes! Real estate commissions in Hawaii, like elsewhere, are fully negotiable. Many agents may be willing to adjust their fees based on the specifics of the transaction, such as the level of service provided or the property’s marketability.
When negotiating, consider the agent’s marketing strategies, experience in the local market, and the uniqueness of your property. Agents may also be more open to negotiating lower fees if they are representing both the buyer and the seller in a dual agency agreement.
Tips for a successful negotiation
Speak to Multiple Agents: Before choosing an agent, consult with several to compare their fees and services.
Explore Incentives: You might negotiate bonuses based on how quickly the agent can sell your home or for securing offers above asking price.
Leverage Property Appeal: If your home is in a desirable area or likely to sell quickly, you may have more room to negotiate a lower commission rate.
Hawaii real estate commission FAQs
What are the changes to real estate commission? Two key changes were implemented in 2024:
Buyers must sign an agreement specifying their agent’s fee before touring properties.
In many markets, the buyer’s agent fees are no longer displayed in MLS listings.
Learn more about the real estate commission changes here.
How do the changes impact buyers in Hawaii? Buyers are now required to agree to their agent’s fees in writing before starting property tours. However, they can still request the seller to contribute towards these fees during the offer negotiations.
How do the changes impact sellers in Hawaii? Sellers will now need to discuss with their agent how much they are willing to offer towards the buyer’s agent’s commission, if any, and this will be negotiated as part of the offer process.
How do you find a real estate agent in Hawaii? Whether you’re buying or selling a home, Redfin agents are here to guide you through every step of the real estate process in Hawaii.
How can you avoid fees? If you choose to sell your home without the help of an agent—commonly known as a For Sale By Owner (FSBO) sale—you can potentially avoid paying commission fees. However, this option requires you to manage every part of the sale, from marketing the property to handling showings and completing all necessary paperwork.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.
The post Hawaii Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
