How commission works | Getting low rates | Low commission companies | Methodology
📊 The data: We polled local agents and found that the average real estate commission in Hawaii is 5.11%, which is less than the national average of 5.45%. |
For a house sold for $649,905, this rate translates to $33,210 in real estate agent commission costs.
Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.
» MORE: Learn how Clever can help you save on commission.
Below, we cover everything you need to know commission costs in Hawaii and also give you tips for getting low rates.
How real estate agent commission works in Hawaii
There are two real estate agents involved in a typical home sale:
- The seller's agent (also called the listing agent), representing the home seller
- The buyer's agent, who represents the person buying the home
The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission and is baked into the sale price of a home and split between the two agents.
» LEARN: More about how real estate commissions work.
Based on our research, the average commission split in Hawaii has 50.42% of the commission going to the listing agent and 49.53% going to the buyer's agent.
Who pays for real estate commissions?
Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.
However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in part — through a higher sales price.
» MORE: Who pays realtor commission.
How to save on real estate commission in Hawaii
💰Best ways to save While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
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» MORE: Options for saving on realtor commission
In 2021, Hawaii’s housing market is even-keeled. Because the market doesn’t lean strongly in favor of sellers or buyers, sellers who want to save during their next transaction should explore low commission real estate companies.
Without the promise of a fast sale, most agents will be hesitant to budge on commission — making low commission real estate companies your best bet for savings.
Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.
»FIND: Top Real Estate Agents in Hawaii
Tips for negotiating realtor commission in Hawaii
Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.
Factor | You may have an easier time negotiating low rates if... |
|---|---|
Your situation |
|
The Hawaii housing market |
|
» LEARN: How you can negotiate lower commission rates.
While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in Hawaii.
In a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more inclined to offer lower commission rates. The opposite is true in a buyer's market.
📖Definitions Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market. Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market. Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable. |
To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in Hawaii.
Stats and facts: The current state of the Hawaii real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 5.7 months of housing inventory on the market | Neutral market |
Sale-to-list price | Homes are selling for 97.90% of their listing price | Seller's market |
Home value | Home values have risen/fallen 1.43% year over year | Neutral |
Low commission real estate companies in Hawaii
Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:
Discount real estate brokers in Hawaii
Discount real estate brokers are companies that will list your home for a reduced commission percentage or a flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.
Clever
Clever Real EstateListing Fee
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 reviews)
- Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
- Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
- Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
- Buyers may be eligible for 0.5% back after closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
Pros
| Cons
|
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
- Trustpilot: 4.8/5 (379 reviews)
- BBB: An A rating
Redfin
RedfinListing Fee
1-1.5% (min. fees apply)
Buyer Rebate
Avg. $1,500 (where availabe)
Avg. Customer Rating
3.2/5 (243 reviews)
- Redfin is an online listing portal and multi-state real estate brokerage operating in 80+ markets across the United States
- Sellers get full service and support from a Redfin agent for a reduced listing fee (rates and minimums vary by location)
- Redfin agents are salaried. Since they do not work on commission, there is no incentive to get sellers the highest sale price — learn more
- RedfinNow — Redfin's iBuyer program — makes all-cash offers on qualifying homes in 10 markets for a 7% service fee (but no additional commission)
- Buyers in select markets might be eligible for a home buyer rebate — learn more
| Asheville | Houston* | Orlando |
| Albany | Indianapolis | Palm Beach |
| Atlanta | Inland Empire* | Palm Springs |
| Austin* | Jacksonville | Philadelphia |
| Birmingham^ | Kansas City^ | Phoenix |
| Boise | Knoxville^ | Pittsburgh |
| Boston | Lake Tahoe | Portland, OR^ |
| Buffalo | Las Vegas* | Raleigh |
| Charlotte | Little Rock^ | Rhode Island |
| Chicago | Los Angeles* | Richmond |
| Cincinnati | Louisiana^ | Sacramento |
| Cleveland^ | Louisville^ | Salt Lake City |
| Columbus | Maryland | San Antonio*^ |
| Connecticut | Memphis^ | San Diego* |
| Dallas* | Miami | San Francisco |
| Delaware | Minneapolis | Savannah |
| Denver* | Nashville^ | Seattle |
| Des Moines^ | Nebraska^ | South Carolina |
| Detroit | New Jersey | South Texas^ |
| El Paso^ | New Mexico | Spokane |
| Flagstaff | New York City | St. Louis^ |
| Fort Myers | Northeast Virginia | Tampa |
| Grand Rapids | Northern New England | Tucson^ |
| Hampton Roads | Oklahoma^ | Washington, D.C. |
| Hawaii | Orange County, CA* | Wisconsin^ |
*Also a RedfinNow location
^No home buyer rebate available
Pros
| Cons
|
As of May 20, 2020, Redfin's average customer rating is 3.2/5 based on 235 reviews across Yelp, Google, and Consumer Affairs.
- Yelp*: 3.5/5 (120 reviews)
- Google*: 4.5/5 (42 reviews)
- Consumer Affairs: 2/5 (81 reviews)
- BBB: B+
*These reviews are for Redfin's Seattle, WA office. Reviews may vary by location.
» MORE: About discount real estate brokers.
Flat-fee MLS listing services Hawaii
Flat-fee MLS listing services offer to post your home on your local MLS for a low rate often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, this might not be a good option for you.
FSBO.com
FSBO.comPrice Range
$399.95
Number of Photos
20
Listing Term
6 months
- FSBO.com is a flat-fee MLS referral service that connects you with licensed brokerage MLSmart Realty, LLC. MLSmart Realty then refers you to a regional Hawaii broker who will list your home on your local MLS for a pre-negotiated rate
- Set your own buyer’s agent commission (FSBO.com recommends 2-3%)
- Edit or cancel anytime (may include an additional fee)
$399.95 - Hawaii Flat Fee MLS
- 6-month listing on MLS
- Syndicated to Realtor.com, Zillow, Trulia, and more
- Up to 20 MLS photos
- FSBO.com Listing
- Unlimited photos on FSBO.com
- Video upload on FSBO.com
Pros
- Set your own buyer’s agent commission
Cons
- Only one package to choose from
- No home valuation included
As of August 12, 2020, FSBO.com has an average rating of 4.9/5 based on 26 reviews on Zillow and an A+ rating with Better Business Bureau.
Note: As a referral service, the reviews and service quality of your local FSBO.com broker may vary. Be sure to research your broker before signing a listing agreement.
Hawaii Flat Fee
Hawaii Flat FeePrice Range
$250
Number of Photos
25
Listing Term
1 year
- Hawaii Flat Fee is a flat-fee MLS service operated by Hawaii Real Estate Team, a licensed real estate brokerage in Hawaii
- Set the buyer’s agent commission (1-3%)
- Listings typically go live in 1 business day
- 10 free listing status changes
- Your number in MLS listing and buyer and agent inquiries forwarded to you
$250
- 1-year listing on MLS
- Syndicated to Realtor.com, Zillow, Trulia, and more
- 25 photos
- Forms, addendums, and disclosures (downloadable)
- Yard sign
- Lockbox rental
Hawaii Real Estate Team also offers a full-service option for a 1% commission (plus buyer’s agent commission). Check website for details.
Pros
- Work directly with a local broker, not a referral service
- Home buyer rebate available if you also buy with Hawaii Real Estate team
- Pay no buyer’s agent commission if you find the buyer
Cons
- Only one flat-fee MLS listing package to choose from
- Only available in Hawaii, Kauai, Maui and Oahu
As of August 1, 2020, Hawaii Flat Fee has an average rating of 4.2/5 based on 10 reviews on Google.
» MORE: About flat-fee MLS services.
Methodology
Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area. Due to data limitations, Hawaii commission figures were inferred from regional averages.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
- Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020