HONOLULU (HawaiiNewsNow) – Realtors nationwide and in Hawaii are making a seismic shift to the way they do business and it impacts their commissions.
Hawaii real estate agents have been preparing for months and on Oahu and new polices took effect Monday.
Christina Nishiyama, senior vice president at Engel & Volkers Honolulu, says for sellers on the MLS (multiple listing service), commissions can no longer advertised. Agents also must enter into a written agreement with the homebuyer so the buyer knows what their agent will charge for their services.
“We’ve been really in full force, from leadership down, going over all the new forms that our organization has put together for us so that we can have each item broken down for our clients, for full transparency,” said Nishiyama.
The change stems from a settlement with the National Association of Realtors after class-action lawsuits on the continent. Critics claimed homeowners were forced to pay inflated agent commissions when they sell their home. Commissions have typically been around 6 percent with it split between the sellers and buyers agent.
“What stemmed in the Midwest was that I think it was miscommunication and lack of transparency,” said Nishiyama.
She says the commission is always negotiable and home prices will continue to be set by the market. With Oahu’s median home prices at just over a million dollars, a 6 percent commission would be $60,000.
“I know it’s a lot to swallow, but I will tell you that it’s because of our beautiful island. We have very limited land and likewise because of inventory,” said Nishiyama.
While there have been nationwide predictions that home prices could be impacted by the new way of doing business, Oahu realtors don’t see much change.
“When you really look down to the data and you dive deep in there, it really hasn’t been impacted by this new rule change. It just really is elevating our profession,” she said.
Hawaii realtors say one of the biggest benefits is more education for their clients.
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