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Who Pays Realtor Fees in Hawaii

Who Pays Realtor Fees in Hawaii?

When it comes to buying or selling a property in Hawaii, one question that often arises is who pays the realtor fees. Unlike some other states in the U.S., the responsibility of paying realtor fees in Hawaii is typically placed on the seller. However, there are some exceptions and variations to this general rule. In this article, we will explore the intricacies of realtor fees in Hawaii and answer some frequently asked questions regarding this topic.

Who pays realtor fees in Hawaii?

As mentioned earlier, it is customary for the seller to pay the realtor fees in Hawaii. This means that the seller is responsible for compensating both their own realtor (listing agent) and the buyer’s realtor (selling agent). The standard commission rate in Hawaii is typically 6% of the final sale price, which is then split equally between the listing agent and the selling agent.

Are there any exceptions to this rule?

While it is the norm for the seller to pay realtor fees, there can be exceptions and negotiations that may alter this arrangement. In some cases, the buyer may choose to pay their own realtor fees, especially if they are working with a buyer’s agent who offers specialized services or representation. This arrangement is more common in commercial real estate transactions, where the buyer may have specific needs or requirements that necessitate additional compensation for their agent.

Additionally, in cases where the property is being sold as a For Sale By Owner (FSBO), the seller might choose not to work with a listing agent. In such instances, the seller is not obligated to pay any realtor fees. However, if the buyer is represented by a realtor, the seller may still need to pay the buyer’s agent’s fees as part of the transaction.

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Do realtor fees impact the final sale price of the property?

Realtor fees are typically factored into the final sale price of the property. When determining the listing price, sellers often take into consideration the anticipated commission fees they will have to pay. However, it is important to note that realtor fees are separate from closing costs, which are typically borne by the buyer. Closing costs include expenses such as title insurance, escrow fees, and loan origination fees.


Q: Can realtor fees be negotiated?
A: Yes, realtor fees can be negotiated between the seller and the real estate agent. Some agents may be willing to reduce their commission rate under certain circumstances, such as if the property is high-value or if the seller is working with the same agent for multiple transactions.

Q: How are realtor fees split between the listing agent and the selling agent?
A: In Hawaii, the standard practice is to split the commission equally between the listing agent and the selling agent. Each agent typically receives 3% of the final sale price.

Q: Are realtor fees tax-deductible?
A: Realtor fees paid by the seller are considered a selling expense and may be tax-deductible. However, it is always recommended to consult with a tax professional for specific advice regarding tax deductions.

Q: Can the buyer negotiate to have the seller pay their realtor fees?
A: While it is uncommon for the buyer to negotiate having the seller pay their realtor fees in Hawaii, it is not entirely impossible. However, such arrangements are typically made on a case-by-case basis and may depend on the specific circumstances of the transaction.

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In conclusion, the general practice in Hawaii is for the seller to pay realtor fees. However, there are exceptions and variations to this rule, and negotiations can be made between the parties involved. It is essential for both buyers and sellers to have a clear understanding of realtor fees and to communicate their expectations with their respective agents during the real estate transaction process.

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