Talk of The Villages Florida - View Single Post - Will new real estate law on August 17th dramatically lower realtor commissions?
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Old 08-06-2024, 06:31 AM
EatthMama EatthMama is offline
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In Florida, realtors are automatically assumed to be “transaction agents”, which means they can represent both sides; seller and buyer. The post that said they can’t is incorrect. I am an MLS realtor so I know of what I speak here.
Buyers will have to sign an agreement before they are ever shown a home by a realtor. The purpose of the new law is to provide transparency as to how each agent is to be paid. The vast majority of sellers’ agents will continue to offer split compensation to pay the buyers’ agent; it just can’t be posted on MLS that way. Buyers’ agents will be more likely to show a home that is offering compensation, so it’s in the sellers’ best interest to agree to the 5-6% on the initial agreement. Close to 80% of homes sold in The Villages are sold not by the listing agent but through the buyers’ agent, so it makes sense to make it attractive on the compensation to attract other agents who will show the home.
The reality is that nothing happens until the buyer brings the money for closing. It’s just a question as to whether the buyers’ agent commission is listed on the final balance sheet on the buyers’ or sellers’ side.
Of course you can choose to try to sell your home yourself. But there is quite a lot of work, knowledge and negotiation skills that realtors bring to the table. We definitely earn whatever percentage we negotiate.