How are real estate commissions determined in Hawaii?

In Hawaii, real estate commissions are determined through negotiation between the parties involved, specifically the seller, buyer, and their respective brokers. This flexibility allows for a range of commission rates to be established based on the unique circumstances of each transaction, service agreed upon, and market conditions.

The process of negotiation reflects the principles of agency in real estate, where the broker represents either the buyer or the seller and works to secure terms that agree upon with their clients. As a result, the final commission can vary widely, depending on factors such as property type, market dynamics, and the level of service provided by the broker.

The other options suggest fixed or regulated mechanisms for determining commissions, which do not accurately represent the nature of real estate transactions in Hawaii. Unlike a situation where commissions are set by a governing body or law, the negotiable nature reinforces the personalized service aspect of real estate brokerage.