[Plinker]

On August 17th a new real estate law will go into effect which will no longer allow realtors hired by the home seller to list the commission the seller will pay to the buyers realtor. In short, the seller will negotiate the commission with their realtor and the buyer will negotiate their end of the commission with the buyer’s realtor. Seller and buyer pay their own fees. The savings could be huge.
Instead of the seller paying a 5-6% commission to be split between seller and buyer agent, the seller could negotiate a 2 1/2 - 3% commission with their realtor. On a $500,000 home the seller would pay $25,000 - $30,000 under the old law and “only” $12,500 - $15,000 under the new law. Double this for a $1,000,000 listing, etc.
I spoke with a Village Realtor concerning pre owned homes and was told they are maintaining the 5-6 % commissions.
Will this cause Villagers to choose MLS if selling their home? Will FSBO sellers now be more willing to hire a realtor? How do you think this will play out?

[retiredguy123]

Is this a Florida state law, or is it an MLS rule? I have never agreed to pay any commission to a buyer's agent.

[Plinker]

Originally Posted by retiredguy123

Is this a Florida state law, or is it an MLS rule? I have never agreed to pay any commission to a buyer's agent.

FTC ruling so is national and all realtors must abide. Google “New realtor commissions and FTC”

[justjim]

Sounds like it’s another bureaucratic overreach to me. But I suppose we will see how it all “shakes out” when this is implemented.

[candacev]

This is the buyer information sheet from NAR. We will be able to have open houses without the form signed for touring an open house. However to answer specific questions and price negotiations we will have to have a form signed. No REALTOR will be able to show you a home without a from signed. It does not ask for financial information.


NATIONAL
ASSOCIATION OF
REALTORS®
HOMEBUYERS:
HERE'S WHAT THE NAR SETTLEMENT MEANS FOR YOU
Buying a home is one of the largest financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your homebuying journey and make the choices that work best for you. NAR's recent settlement has led to several changes that benefit homebuyers, and we wanted to clearly lay them out for you.
Here is what the settlement means for homebuyers:
• You will sign a written agreement with your agent before touring a home.
• Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
• The buyer agreement must include four components concerning compensation:
a. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
b. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)-and not open-ended (e.g., cannot be "buyer broker compensation shall be whatever the amount the seller is offering to the buyer").
c. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer, and,
d. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
• Written agreements apply to both in-person and live virtual home tours.
• 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.
• The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS) — MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
REALTORS are members of the National Association of REALTORS"

[retiredguy123]

Originally Posted by Plinker

FTC ruling so is national and all realtors must abide. Google “New realtor commissions and FTC”

Thank you. I don't understand how this would affect me at all. I have sold houses with a listing broker contract, but I have always made it clear that the broker is representing me only, not the buyer or their agent. The entire commission is paid by me at closing, and all of the money goes to the listing broker. Any licensed agent who shows my house is representing me. If they have a written buyer's agent agreement, they cannot show the house. It is also a violation of Florida law to be a dual agent.

[Plinker]

I’m not sure we are on the same page. I understand what the duty is of a sellers agent but this has nothing to do with the splitting of the commission. If a seller agrees to pay their broker a 6% commission, then that commission is split. At closing, the sellers agent will pay around half of their 6% commission to the buyers agent. Thus, the seller paid both the selling and buying agent fees. If the agent for the seller also brings a buyer then they get the entire 6%. This is known as double dipping. You mention that you paid the commission, as is customary. If a buyer has a realtor who shows and sells them a home then this is when the split occurs. May I ask what commission rate you paid? If it’s 5 to 6%, then you paid both agents. This is why the FTC got involved.

[candacev]

The new listing agreement that is out has more choices for the seller:

A: seller pays x% to listing agent and listing agent split with buyer's agent (what it has been)
B: seller pays x% to listing agent and seller pays x% to buyer's agent
C: seller pays x% to listing agent and 0 to buyer's agent

[BPRICE1234]

It didn't help me at all in Ohio. The way ot was explained it if you pay the seller realtor 3% and offer the buyer 2%, the home buyer makes up the difference. I was also told that realtors can see and sometimes won't show a house if they feel shorted on the commission. The whole thing is a scam.

[retiredguy123]

Originally Posted by Plinker

I’m not sure we are on the same page. I understand what the duty is of a sellers agent but this has nothing to do with the splitting of the commission. If a seller agrees to pay their broker a 6% commission, then that commission is split. At closing, the sellers agent will pay around half of their 6% commission to the buyers agent. Thus, the seller paid both the selling and buying agent fees. If the agent for the seller also brings a buyer then they get the entire 6%. This is known as double dipping. You mention that you paid the commission, as is customary. If a buyer has a realtor who shows and sells them a home then this is when the split occurs. May I ask what commission rate you paid? If it’s 5 to 6%, then you paid both agents. This is why the FTC got involved.

It's about representation. Under Florida law, an agent cannot represent both the buyer and the seller. When I sign a listing agreement, it is clear that any licensed agent who shows my house is representing me, the seller. If an agent has a written agreement to represent the buyer, they cannot show my house because they are acting as an illegal dual agent. At closing, the entire commission is paid by me on the seller's side of the closing statement. If it turns out that an agent showing my house has a buyer's agent agreement, they are violating both the listing contract and Florida law. I am willing to pay an agent to represent me in selling a house, but, I will not agree to pay any commission to a buyer's agent. I expect agents to treat buyers and sellers fairly, but, I expect them to act in my best interest to get the best price, since they are representing me, the seller.

[Plinker]

Originally Posted by retiredguy123

It's about representation. Under Florida law, an agent cannot represent both the buyer and the seller. When I sign a listing agreement, it is clear that any licensed agent who shows my house is representing me, the seller. If an agent has a written agreement to represent the buyer, they cannot show my house because they are acting as an illegal dual agent. At closing, the entire commission is paid by me on the seller's side of the closing statement. If it turns out that an agent showing my house has a buyer's agent agreement, they are violating both the listing contract and Florida law. I am willing to pay an agent to represent me in selling a house, but, I will not agree to pay any commission to a buyer's agent. I expect agents to treat buyers and sellers fairly, but, I expect them to act in my best interest to get the best price, since they are representing me, the seller.

I agree with your post 100%. However, with respect, the new law is about how seller and buyer realtor commissions will be paid and not about representation.

[Snakster66]

Originally Posted by Plinker

I agree with your post 100%. However, with respect, the new law is about how seller and buyer realtor commissions will be paid and not about representation.

It's not a law, but yes.

[retiredguy123]

Originally Posted by Plinker

I agree with your post 100%. However, with respect, the new law is about how seller and buyer realtor commissions will be paid and not about representation.

Thanks. Referring to Post No. 8, I have always used option C. I don't care if a buyer has an agent, but I will not pay for it.

[Normal]

Originally Posted by Plinker

I’m not sure we are on the same page. I understand what the duty is of a sellers agent but this has nothing to do with the splitting of the commission. If a seller agrees to pay their broker a 6% commission, then that commission is split. At closing, the sellers agent will pay around half of their 6% commission to the buyers agent. Thus, the seller paid both the selling and buying agent fees. If the agent for the seller also brings a buyer then they get the entire 6%. This is known as double dipping. You mention that you paid the commission, as is customary. If a buyer has a realtor who shows and sells them a home then this is when the split occurs. May I ask what commission rate you paid? If it’s 5 to 6%, then you paid both agents. This is why the FTC got involved.

I would in no way shape or form agree to a 6% sales contract now that the new law is coming into effect. You can list any home on the MLS yourself for $99. Zillow is a great platform to advertise on.

[retiredguy123]

Originally Posted by candacev

The new listing agreement that is out has more choices for the seller:

A: seller pays x% to listing agent and listing agent split with buyer's agent (what it has been)
B: seller pays x% to listing agent and seller pays x% to buyer's agent
C: seller pays x% to listing agent and 0 to buyer's agent

I hasn't been that way when I have signed a listing contract. I have always used option C.