By Melissa Forte-Litscher, NextHome Cornerstone Realty
The National Association of Realtors (NAR) settlement with the Department of Justice will come into effect nationwide on August 17, 2024. Our local association, the Emerald Coast Association of Realtors, will implement the changes on August 12, 2024. This settlement introduces changes to how real estate agents’ compensations are handled in the MLS (Multiple Listing Services) and in real estate transactions.
One of the main changes is that buyer’s agent compensation will no longer be listed in the MLS. While there are some differences in how things are processed, an agent’s compensation on both sides of a transaction is, and always has been, negotiable. Florida has been one of 11 states that didn’t require a buyer to sign an agreement with an agent to enlist their services in purchasing a home. Now, nationwide, buyers will need to sign a brokerage agreement before an agent can show the buyer any property listed in the MLS.
As a buyer, you must sign a written agreement with a broker/agent before touring a home, whether in person or virtually. This agreement should include the services and value that will be provided to you, and the cost of those services, thus securing your agent to work solely on your behalf as a buyer. Once you have reached an agreement and begin your home search, your agent will be working with you to secure your dream home. After you find a home that you like and want to make an offer, your agent will negotiate the best offer which meets your financial situation. That can include asking the seller to pay some or all of the compensation due to your agent, which is permitted. But, the offer cannot be shared on a MLS. Also, the amount your agent receives cannot exceed the amount you agreed to in your brokerage agreement. You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services. You can still accept concessions from the seller, such as offers to pay your closing costs or buy down your interest rate. For more information, you can visit the consumer facing website at www.nar.realtor/the-facts.
Agents who are Realtors are here to help you navigate the process of buying a home and are ethically obligated to work in your best interest. Their compensation remains fully negotiable, they must abide by the REALTOR® Code of Ethics, and they must have clear and transparent discussions with you about compensation. At NextHome Cornerstone Realty, our brokerage has been closely following how these developments have unfolded over the past two years.
Because of this, our leadership is uniquely positioned to guide our agents to successfully navigate these changes in the real estate industry.
You have a wide range of choices when it comes to one of the largest financial decisions in your life. Make sure to enlist the assistance of a trusted professional to help you understand the full range of these choices when purchasing a home. As an experienced Accredited Buyer’s Representative and a Certified Residential Specialist, I have the skills to help guide you through this process, and as always, I’m at your service. Call or text me at (850) 496- 7444 or email Melissa@NextHomeCornerstone.com. Visit destin-fwbrealty.com on the web.
