U
nderstanding real estate commissions in Hawaii is crucial whether you're buying or selling a property. New rules implemented in 2024 aim to increase transparency and improve communication regarding commission costs, giving buyers and sellers more clarity and control over their transactions.

    Before diving into the details of real estate commissions, it's helpful to look at Hawaii's current housing market:

    * Median Home Sale Price: $783,200

    * Housing Supply: 6,878 (+29.8% YoY)

    * Homes Sold Above List Price: 21.6% (-4.2 pts YoY)

    Real estate commissions are fees paid to agents for their assistance in buying or selling a property. Traditionally, sellers have covered both their own agent's fees and the buyer's agent's fees. However, starting August 17, 2024, buyers must sign an agreement specifying their agent's fee before touring properties.

    Commission rates vary based on individual negotiations and transaction details. Factors such as location, local market, and services offered can influence commission costs. For example:

    * Honolulu: $580,000 (1.5% = $8,700, 3% = $17,400, 5% = $29,000)

    * East Honolulu: $1,625,000 (1.5% = $24,375, 3% = $48,750, 5% = $81,250)

    Redfin offers competitive rates, with listing fees starting as low as 1%. Buyer fees can differ based on location, but Redfin aims to keep its rates competitive.

    Real estate commissions in Hawaii are fully negotiable. When negotiating, consider the agent's marketing strategies, experience, and property uniqueness. Agents may be more open to negotiating lower fees if they represent both buyer and seller in a dual agency agreement.

    Tips for successful negotiation include:

    * Speaking with multiple agents

    * Exploring incentives

    * Leverage property appeal

    Key changes to real estate commission in 2024 include:

    * Buyers must sign an agreement specifying their agent's fee before touring properties

    * Buyer's agent fees are no longer displayed in MLS listings in many markets

    Buyers can still request sellers to contribute towards buyer's agent fees during offer negotiations. Sellers will need to discuss with their agent how much they're willing to offer towards the buyer's agent commission.

    To find a real estate agent in Hawaii, consider working with Redfin agents who can guide you through every step of the process. If you choose to sell your home without an agent (FSBO), you may avoid paying commission fees, but this option requires managing every part of the sale.