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When you list your house with a real estate agent, you will be charged a commission. This is typically a percentage of the final sale price of your home, and it is paid to the agent orfirm that facilitated the sale.
The average real estate commission in Hawaii is 5.39%, according to a poll of FastExpert real estate agents, which is near the national average of 5.57%, as reported by FastExpert agents from all states.
The average commission, otherwise known as realtor fees, in Hawaii falls slightly below the national average, but there is still a wide range in what you can expect to pay. Some agents may charge as low as 3%, while others may charge as much as 7%.
The best way to know how much you will be charged is to ask your agent upfront. Be sure to get this information in writing, so there are no surprises later on.
>>MORE: Finding local agents is easy with FastExpert
Read About Hawaiian Real Estate Commissions:
Who receives the commission payment?
The average real estate commission payment in Hawaii is paid by the seller and includes both the listing agent’s commission and the buyer’s agent’s commission. The listing agent is the agent representing the seller, while the buyer’s agent represents the buyer.
Each agent does not keep the entire portion of their commission; a percentage also goes to their brokerage. Thus, there are four parties that receive payment on real estate transactions: the listing agent, the listing agent’s brokerage, the buyer’s agent, and the buyer’s agent’s brokerage.
Typically the total commission or realtor fees are split 50/50, with 50% going to the listing agent and 50% going to the buyer’s agent. However, this split is negotiable, and you may be able to negotiate a different arrangement with your agent.
While real estate agent commission rates and brokerage fees may vary, you can determine a reasonable estimate of the realtor fees. The graphic above shows the general path of the realtor fees based upon a home value of $500K. If the commission is split equally between the four parties, each will receive a payment of $7,500.
>>MORE: How Do Real Estate Agents Get Paid?
Calculating the Commission on a Hawaiian Home
Let’s take a more specific look at the average home in Hawaii and the Hawaii real estate commission.
The median sales price of a home in Hawaii is $699K, according to Redfin. With an average total real estate agent commission of 5.39%, the realtor fees would be $37,676. This is split between the buyer’s agent’s brokerage and the seller’s agent’s brokerage. If the local agents and brokerages are equally dividing the realtor fees, each party will receive $9,419.
The realtor commission can vary, so it is important for prospective buyers and home sellers to discuss the commission prior to working together.
We suggest interviewing multiple local agents to determine not only who is the best fit for your individual needs, but also who provides the best services at a low cost.
>>MORE: Steps Realtors Take to Sell Your Home
What Affects the Commission Rate?
There are a few factors that can affect the commission rate you pay in Hawaii.
The first is the type of property you are selling. For example, the condition of the property, the location, and the type of home (condo, single-family, etc.) can all affect the commission.
The second factor is the work of selling your home. If your home is in high demand, it may sell quickly with minimal effort from the agent. On the other hand, if your home is a fixer-upper or is otherwise difficult to sell, the agent may charge a higher commission to compensate for the extra work.
The third factor is the market conditions. In a hot market, agents may be able to charge a higher commission because they are confident that they will sell your home quickly. In a slower market, you may be able to negotiate a lower commission.
The fourth factor is the agent’s experience. More experienced agents may charge a higher commission because they have a proven track record of selling homes.
In general, you can expect to pay a lower commission in Hawaii than in other states. This is due in part to the high cost of living in the state and the difficulty of selling property here.
If you are selling your home in Hawaii, be sure to shop around and compare commission rates from different agents. You may be able to save money by negotiating a lower rate or by finding an agent who charges a flat fee instead of a percentage of the sale price.
What Are the Duties of a Real Estate Agent in Hawaii?
The duties of a real estate agent in Hawaii include helping buyers find properties that meet their needs and budget and helping sellers sell their homes. While it sounds pretty basic, there are certain legal and regulatory responsibilities that agents must adhere to.
Some of the duties of a real estate agent in Hawaii include:
- Negotiating with buyers and sellers to reach a fair price
- Drawing up contracts and other legal documents
- Disclose, in writing, if they are acting as a dual agent
- File all paperwork correctly and in a timely manner
How to Find a Real Estate Agent in Hawaii
FastExpert can help you find the perfect agent for your needs. Finding an agent in Hawaii is easy with our agent directory. Simply enter your zip code, and we’ll provide you with a list of top-rated agents in your area.
You can then read agent reviews, view listings, and compare agent commission rates to find the best fit for you.
So, what are you waiting for? Start today!