Confused about how buyer agent commission works after the August 2024 changes? These videos explain information sellers and buyer’s need to know in the post-NAR settlement era. Learn how to navigate buyer representation, commission negotiation, and the new Multiple Listing Service (MLS) guidelines. Stop wondering who pays the buyer’s agent and gain confidence in selling and buying your home!
There are a few key things everyone needs to know.
- Every buyer’s agent is required to have a signed Buyer/Broker agreement with all buyers. The agreements are required to be signed in advance of any property showings virtually or in person. Some states have been using Buyer/Broker Agreements for years across the board and some brokerages/agents have been using them in Florida. However, moving forward, all REALTORs® are required to use them.
- Each Board of REALTORs® had to draft a Buyer/Broker Agreement that would be used for this purpose. So, the agreements could vary across geographies, however, all agreements had to specify the compensation rate for the agent in the agreement. I have attached a copy of the current agreement for NABOR (Naples Area Board of REALTORs®). Please keep in mind that the Board may modify the agreement in the future, but this is the version that is in currently in place. This means that buyers and their agents must agree to a compensation rate that the buyer is willing to pay and the agent/broker is willing to accept for serving as their agent.
- Sellers may no longer advertise what commission rate they are willing to pay on to Buyer’s agents on MLS (Multiple Listing System). This does not mean they cannot offer to pay some or all of a Buyer agent’s commission as a part of their listing or contract negotiation, just that they cannot advertise it on MLS any longer. To date, we are finding most sellers are still willing to provide funding for buyer’s compensation at some level, but that will need to be discussed and decided during the process of considering that home and ultimately negotiating the offer.
Frequently Asked Questions
Are you a buyer wanting to know how these changes affect you?
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