Richard Eimers, Broker Owner August 19, 2024
The National Association of REALTORS® (NAR) settlement practice changes took effect on Saturday, August 17, 2024, significantly impacting how real estate transactions are conducted in Florida and across the United States. Here’s what Florida buyers and sellers need to know.
For Buyers:
- Written Agreements: Before touring a home, you’ll now need to sign a written agreement with your agent. This applies to both in-person and virtual tours.
- Compensation Disclosure: The agreement must clearly state how much your agent will be paid and how that amount is determined. This could be a flat fee, percentage, or hourly rate.
- Negotiable Fees: Remember, all broker fees and commissions are fully negotiable. Don’t hesitate to discuss this with your agent.
- No Hidden Costs: Your agent can’t receive compensation exceeding the amount agreed upon in your contract.
For Sellers:
- Commission Flexibility: You can still offer to pay the buyer’s agent commission, but this information can no longer be advertised on Multiple Listing Services (MLS).
- Potential Savings: You may see more cash at closing if you choose not to cover the buyer’s agent fee.
- Buyer Concessions: You can still offer buyer concessions (like assistance with closing costs) on the MLS.
For Both Buyers and Sellers:
- Increased Transparency: These changes aim to make the commission structure more transparent and potentially reduce overall costs.
- More Negotiation: Expect more discussions about agent compensation. Don’t be afraid to ask questions and negotiate.
- Potential Market Shifts: These changes may lead to shifts in the real estate market, including possible adjustments in home prices and agent availability.
- Agent Exodus: Some part-time or less experienced agents may leave the industry, potentially leading to a more professional agent pool.
To navigate these changes effectively:
- Ask your agent to explain the new rules and how they affect your specific situation.
- Take time to understand any agreements before signing.
- Shop around for agents to compare services and fees.
- Stay informed about local market trends, as these changes may influence pricing and negotiation strategies.
Remember, while these changes may seem complex, they’re designed to benefit consumers by increasing transparency and negotiability in real estate transactions. Your real estate professional can guide you through this new landscape to ensure a smooth buying or selling experience.