There has been much in the news lately about a settlement to resolve claims against the members of the National Association of Realtors (NAR) and its state and local associations, including Hawaii Realtors.
As a current or future home buyer or seller here in Hawaii, here’s what you need to know.
NAR elected to settle rather than continue litigation that could ultimately hurt its members and their small businesses, including the 11,000 members of Hawaii Realtors who work and live in communities throughout our state. As part of the settlement, NAR will pay $418 million to people who sold their homes in recent years to shield its members from liability.
While the NAR settlement doesn’t fundamentally change the way people buy and sell homes in Hawaii, there are two key changes expected to go into effect in mid-August.
First, due to the settlement, properties listed on the Multiple Listing Service (MLS) will no longer include the buyer agent’s compensation. Second, a buyer who wants to work with an agent will need to sign a written agreement with their agent before touring any home. If you plan to buy a home in Hawaii, before starting your home search, you and your agent will need to agree on what they’ll do on your behalf and how much you will pay them.
Here’s what won’t change.
As always, fees will continue to be negotiable between you and your real estate agent. NAR and its state counterparts — including Hawaii Realtors — don’t set commissions. Realtor commissions aren’t the cause of the affordability crisis here in Hawaii — where prices are among the highest in the nation — or anywhere else. They are driven by the market.
Most importantly, you can still choose to work with a real estate professional to help you navigate the often convoluted and sometimes overwhelming process of buying or selling a home in Hawaii.
Members of Hawaii Realtors understand the market and will help you list your home at a realistic, competitive price to maximize your profit. They explain home buying and selling nuances specific to our island communities, such as the difference between a fee simple and a leasehold property. They coordinate and secure property viewings and inspections, appraisals and other necessary services. They are resources for information on neighborhoods, utilities, zoning and local laws and regulations.
Most significantly, Realtor members abide by a strict code of ethics that requires a higher standard of professionalism and integrity and advocate for our clients through every step of a transaction.
Realtors work with consumers in what is most likely the largest investment or transaction these individuals and families will make in their lives. Members of Hawaii Realtors will continue to provide exceptional value to consumers. As always, we stand by our clients and are equipped and ready to do everything we can to help you realize the dream of home ownership in the Aloha State.
Nancy Donahue Jones is CEO of Hawaii Realtors.
