Commissions
What we charge, and how commissions work
Our fees at a glance, how commissions work in Hawaii, what changed in 2024, and published national data.
Draft for Marcus Suzuki (R)'s review. Each statement is tagged with its source in sources-commissions.md. Not yet reviewed by an attorney.
General information only. This page is not legal or tax advice. Rules and practices change, and every agreement is different. Read your own agreements carefully, and talk with a licensed attorney or tax professional about your situation.
Our fees at a glance
Draft: pending Hawaii advertising rules review
| You are | Our fee | Usually paid by |
|---|---|---|
| Selling a home | 1.5% of the sale price, minimum $8,000, maximum $25,000 | The seller, from the sale proceeds at closing |
| Buying a home | 1.5% of the purchase price, minimum $8,000, maximum $25,000 | The seller. If the seller offers more, you get the difference as a credit. If less, we cover it on homes of $400,000 or more. |
| Buying a newly built home | The builder's published fee for that project, with 50% credited to you at closing | The builder |
Commissions are not set by law and are fully negotiable. These are the terms we offer. Your final terms are the ones in your signed agreement.
Details and examples: selling a home · buying a home, and your credit · buying a newly built home
One side only
We represent one side only, the buyer or the seller, never both in the same sale. If you want to buy a home we have listed, we will refer you to another brokerage.
How commissions work in Hawaii
A real estate commission is what a brokerage is paid for representing you. It is written into an agreement you sign, and it is usually paid at closing through escrow and shown on the closing statement.
- Negotiable. Broker fees are not set by law and are fully negotiable. The local multiple listing services (MLS) do not set or recommend rates, and your agreement must say the commission is negotiable.
- Two agreements. A listing agreement, between the seller and the listing brokerage, and a buyer agreement, between the buyer and the buyer's brokerage. Each sets what that brokerage is paid.
- Cooperating compensation. A payment from the seller, or the listing brokerage, to the buyer's brokerage. It is optional and negotiated, and the seller approves it in writing, with the amount or rate, before it is offered or paid.
What changed in 2024
New National Association of REALTORS® (NAR) practice rules took effect on August 17, 2024, and HiCentral MLS adopted them on Oahu.
- No compensation offers in the MLS. A seller can still offer to pay a buyer's brokerage, but outside the MLS or as part of an offer.
- Written buyer agreement before touring. A buyer working with an MLS member brokerage signs one before touring a home, in person or by live virtual tour.
- A specific amount or rate. The buyer agreement states exactly what the buyer's brokerage will be paid. It can't be open-ended, and the brokerage can't be paid more, from any source.
- Agreements can be changed if the buyer and the brokerage both agree in writing.
Hawaii general excise tax (GET)
GET applies to commission income. It is a tax on the business, not a sales tax, and a business may pass it on to its customers. On Oahu the rate on commissions is 4.5%, including a 0.5% county surcharge, and the maximum visible pass-on rate is 4.712%. Our fees include GET. When you compare quotes, ask whether GET is included or added.
Sources: HiCentral MLS Rules and Regulations (July 20, 2026), sections 1.9, 5, 5.0.0 and 5.0.2; HiCentral MLS, "NAR Settlement" page; NAR press release (August 16, 2024) and consumer guide to written buyer agreements; Hawaii Department of Taxation, General Excise Tax and County Surcharge pages.
Published national data
These are national figures from past sales, not Oahu figures, and not standard, recommended or expected rates. We did not find a published, credible commission figure for Oahu or Hawaii.
| Source | What it measured | Figure |
|---|---|---|
| Federal Reserve Board, FEDS Notes (May 12, 2025) | Rates offered to buyer's agents in MLS listings, 1995 to 2023, before the 2024 changes | Average fell from about 3% in the late 1990s to about 2.7%. In 2022 most rates were between 2% and 3%. |
| Redfin (December 8, 2025) | Buyer's agent commissions on thousands of closed sales per quarter by Redfin agents and Redfin partner agents, July to September 2025 | Buyer side: 2.42% on average. Under $500,000: 2.52%. $500,000 to $999,999: 2.32%. $1,000,000 and up: about 2.22%. |
| AccountTECH study (January 21, 2025) | 224,176 transactions at 1,290 brokerage offices, five months after the 2024 changes | Seller side: 2.73% on average. Buyer side: 2.55% on average. |
Our own experience on Oahu: in the Oahu purchases we've handled, sellers' offers to buyer's brokerages have ranged from 2% to 3%, plus Hawaii general excise tax. This is buyer-side only, from our own records.
Sources: Banerjee and Paciorek, "Commissions and Omissions," FEDS Notes, Federal Reserve Board (government research); Redfin quarterly commission report (a brokerage's own transaction data); AccountTECH benchmark study (a brokerage software company's data). Links below.
Questions?
Commissions are easier to understand with your own numbers in front of you.
Official links and sources
- HiCentral MLS: NAR settlement
- HiCentral MLS Rules and Regulations (July 20, 2026)
- NAR: consumer guide to written buyer agreements
- NAR: what the settlement means for home buyers and sellers
- Hawaii Department of Taxation: general excise tax
- Hawaii Department of Taxation: county surcharge and pass-on rates
- Federal Reserve Board: "Commissions and Omissions" (FEDS Notes, May 12, 2025)
- AccountTECH: commission rates after the NAR settlement
- Redfin: buyer's agent commissions, Q3 2025 (December 8, 2025)
Marcus Suzuki (R) is a real estate broker. This page is general information about real estate commissions and is not legal or tax advice. Last reviewed: [date to be set at launch].
Questions about commissions?
Ask Marcus Suzuki (R), principal broker.
Aloha American Realty, Inc.