WINTER PARK, Fla. – Real estate agents in Florida and across the country are preparing for a major change in the way they do business.
Starting Saturday, new rules will come into effect that could change the way real estate agents who help people buy and sell homes are paid.
One of the two biggest changes is that agents are no longer allowed to list commissions when listing a home on the Multiple Listing Services (MLS).
Buyers must also sign a written agreement with their broker specifying the amount of compensation to be paid.
Jared Dunn of LPT Realty says the industry has been preparing for the change for some time.
“Across the country, our agents are completing training so they can prepare to best represent their clients, myself included,” Dunn said.
Dunn said the new rules will change the way he approaches a home before showing it.
“One of them is that I have a pre-show agreement that I make with my clients in advance where we just agree on the commission,” Dunn said.
A series of lawsuits against the National Association of Realtors forced changes across the board.
The lawsuits alleged that the compensation rules, which required selling brokers to disclose compensation for buyers’ brokers in the offering materials, essentially amounted to a monopoly that reduced revenues and artificially inflated commission rates.
As part of the settlement, the country’s largest trade association agreed to a series of industry-wide changes and paid more than $400 million in damages.
Many in the industry believe the changes will encourage buyers and sellers to look for agents who offer lower commissions or flat fees, and that some may forgo using an agent altogether.
Dunn sees it differently.
“Sellers will still get compensation, especially in this market, if they want their homes shown,” he said. “Because that’s the way the market has always been.”
Rose Kemp, who has worked as a real estate agent for over 20 years and is president of the Orlando Regional Realtor Association, said she knows firsthand that agents and their skills are critical to the successful purchase and sale of real estate.
“Usually it’s the biggest transaction of your life, an investment, a nest egg, retirement savings or whatever,” she said. “That’s why you need a real estate agent.”
