08/05/2024
Tomorrow is the day (In the Tampa Bay Area). 8/6/2024 Real Estate transactions are changing. Any homes pending now are grandfathered in until they close. This is a simplified look at the changes. Please consult your chosen Real Estate Professional to explain this in much greater detail.
Brief Overview of how things used to operate. Previously, the listing agent and the seller would agree on a total commission amount. Essentially, the seller covered the commission for both the listing agent and the buyer’s agent (as an incentive to show their property). The listing agent would then allocate a portion of this total (often around half) to the buyer’s agent’s brokerage, and this amount would be posted on the MLS. The buyer’s agent could see their portion upfront, so there was no need for additional negotiation about their commission. The buyer's agent would schedule a showing, and then write the offer. Since the seller was paying for both sides of the commission, there was no need for the buyer to negotiate compensation for their own agent. Once it closed, the listing agent's brokerage would pay the buyer's agent brokerage the advertised amount and the brokerages would disperse it to their agents.
NOW...with the new changes.
BUYER Agents: MUST have a signed agreement with the buyer specifically stating their fees PRIOR to showing any property. The fees are negotiated between the Agent and the buyer. If the seller chooses not to offer a buyer's agent commission. It can be negotiated as part of any offer. If the seller still refuses to pay any commission or concessions...It will be the buyer's responsibility to pay their own agent.
SELLERS: Commission will no longer be advertised on the MLS. New listing agreements will spell out how your much your listing agent gets paid AND how much commission you are offering the Buyer's agent, if any. You can choose to offer CONCESSIONS and have that advertised on the MLS. Concessions will go straight to the buyer. The Sellers cannot force the buyer to use the concessions towards their buyer's agent commission. The buyer chooses how the concessions are to be used. Buy down of loan, closing costs, price reduction, etc.
IMPORTANT: SELLERS can still choose 'Business as Usual'. Pay the commission for both sides as an incentive for buyer's agents to show their property. We'll just be having longer conversations about it.
Now more than ever...who you hire MATTERS!
In other news...interest rates are dropping. So, there's that.
Oh and... the home shown below is for sale and just dropped their price by $100,000 AND are still offering a commission to a buyer's agent.
