6% real-estate commission: Will selling a $1M Maui home cost less?

A landmark 2024 settlement and subsequent rule changes in the U.S. real-estate industry have the potential to disrupt the long-standing practice of sellers paying roughly 5–6% in total agent commissions. For owners selling a $1 million Maui home, that could mean commissions become negotiable rather than automatic, altering how transaction costs are allocated.

The litigation targeted the National Association of Realtors (NAR) and several brokerages, resulting in a $418 million settlement announced in March 2024. One key outcome removed practices that effectively required sellers to offer cooperative compensation to buyer agents to have a listing appear on many Multiple Listing Services (MLS). As a result, compensation terms are now subject to clearer disclosure and negotiation.

Historically, sellers commonly absorbed a 5–6% commission, typically split between listing and buyer agents; the new environment could reduce that burden in competitive markets. Yet industry reporting shows brokerages are exploring workarounds and some markets have seen little immediate decline in commissions, suggesting a gradual, uneven transition rather than an overnight collapse of the standard rate.

Operational changes accompanying the settlement include requirements for written buyer-broker agreements and updated MLS procedures, which force greater transparency about who pays whom and how much. Emerging listing platforms that make seller-offered buyer-agent compensation visible may accelerate fee competition, but adaptation timelines vary by state and MLS operator.

Market analysts expect a multi-year shift toward a more negotiated fee structure, with alternative pricing models (flat fees, hourly rates, tiered services) gaining traction. For a $1M Maui property the commission outcome will hinge on local demand, the seller’s negotiating position and whether market norms in Hawaii evolve faster than on the mainland. Sellers should obtain transparent, written fee agreements and compare agent offerings rather than assume a default 6% charge.