Cindy Abraham Real Estate Professionals Broward County Florida. In recent years, navigating the real estate market has been challenging, partly due to the prevalence of less experienced and less knowledgeable Realtors. Although this often meant that we did a significant amount of the work and shared the commission offered by the seller equally, it frequently allowed us to negotiate better terms for our clients. However, the landscape is shifting. With new regulations in place, many agents will need to demonstrate clear value for their services, which might lead to a reduction in the number of agents who are less committed to their profession. Consequently, buyers will be more inclined to seek out top-notch representation if they are required to cover their agent’s commission.
Historically, my focus has been primarily on representing sellers. While our team continues to excel in representing sellers, Brian, with his background as a buyer’s agent, brings valuable skills to the table for negotiating on behalf of buyers. His expertise in construction is particularly beneficial during the inspection process, and my understanding of the current market aids in navigating appraisals. Additionally, our experience with various condo associations, including those in Hillcrest, ensures that we handle the approval process smoothly and respectfully by communicating directly with property managers or board presidents.
**WHATÂ BUYERSÂ NEEDÂ TOÂ KNOW**
Starting August 17, 2024, buyers will be required to sign an agreement that specifies the commission for their agent before viewing any properties. This agreement will detail the services provided by the agent and their compensation.
Compensation offers will no longer be listed on the Multiple Listing Service (MLS). Previously, this information was accessible only to agents. Sellers can still offer concessions for buyer closing costs on the MLS. These concessions are given directly to the buyer and can be used to cover various expenses, including the agent’s commission.
Buyers may also request to include their agent’s commission in the sale price they offer to the seller. To determine if this approach is feasible, buyers should consult their lender to see if the commission can be incorporated into the mortgage loan. This could help reduce the amount of cash needed at closing.
**WHATÂ SELLERSÂ NEEDÂ TOÂ KNOW**
With buyers now responsible for their agent’s commission, offering concessions will be an effective strategy. Previously, concessions were stated as a percentage contribution towards closing costs, pre-paids, etc. However, with the new rules, buyers can use seller concessions to cover their agent’s commission, among other expenses, giving them greater flexibility.
Offers presented to sellers will include a buyer broker agreement that specifies the buyer’s commission. Sellers can offer concessions to cover all or part of this commission. Buyers can apply these concessions toward various costs, including but not limited to mortgage points and closing costs.
**WHATÂ REALÂ ESTATEÂ AGENTSÂ NEEDÂ TOÂ KNOW**
As of August 17, 2024, MLS listings will no longer display offers of compensation. However, buyers and agents can still negotiate compensation off-MLS. These negotiations help make professional representation more accessible to buyers and expand the buyer pool for sellers.
Agents must secure a written agreement with buyers before showing properties. It’s crucial for agents to familiarize themselves with the new forms and educate clients about these changes.
Remember, real estate commissions are negotiable. Each ½% change equals $500 per $100,000. It’s up to buyers and sellers to decide the value of their agent’s expertise, especially in negotiations. I always say that if a realtor isn’t willing to advocate for their own compensation, why would they advocate for yours?
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Email:Â info@ateamflorida.com
Phone:Â 954-964-2559
