Keller Williams Realtors Hollywood 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.

**WHAT BUYERS NEED TO 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.

**WHAT SELLERS NEED TO 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.

3850 Washington, Suite #1016, Hollywood Florida 33021

Email: info@ateamflorida.com

Phone: 954-964-2559