The realtor earns their commission through marketing your home, negotiating prices/terms, maintaining strict contract guidelines, and handling a ton of the important paperwork for the sale of your home.
It is up to you to decide how long you would like to list your home with any realtor. You can negotiate with the realtor in the terms for the duration of the contract.
The average duration of most listing contracts in Hawaii is six months. If the house does not sell by then, you may choose to list it with another realtor. The term should be no less than three months, because that gives the realtor the chance to get to know your property and market it effectively. They can build up momentum in order to make a good sale.
The average commission on a home is 6% of the final closing price of the property. There are realtors that will negotiate on commission rate however sellers beware “you get what you pay for” Paying a lessor commission for your home may attract Realtors with little experience or selling your home may not be a priority for a realtor with more experience. This can lead to subpar services and lead to a rocky transaction which will affect your
It is important to note that in some cases you might still have to pay a commission even if the listing has already expired. If the person who eventually buys is someone that the realtor brought to the table, the
clause will usually state that the commission is payable for up to 90 days
after the contract has expired. This helps protect realtors from having all their hard work taken advantage of by unscrupulous sellers and buyers trying to cut them out of the deal and save money.
Your contract with the realtor can be cancelled early for a number of reasons. If you don’t feel the realtor is doing enough to market your property effectively, you are legally entitled to ask for an early cancellation. Be clear about the responsibilities and obligations of
each party, and see if you can get them to be more proactive on your behalf. If they are not meeting the terms of the agreement, ask to cancel. It’s the goal of every realtor to have happy clients and most will be willing to bend when possible.