The real estate industry continues to evolve. One of the latest changes you might have heard about involves updates to the REALTOR® commission structure. As of August 17, 2024, new rules are in place, adjusting how commissions are negotiated and handled between home buyers, sellers, and brokers. This latest update aims to increase transparency and clarify the commission process for all parties.
Bee Realty Corp REALTORS® led by experienced Broker Bee Powell have already been preparing for the transition, attending training sessions, reviewing updated contract requirements, and refining their processes to ensure a seamless, stress-free experience under the new guidelines.
Understanding the Commissions Changes: What Buyers and Sellers Should Know
Here’s how real estate commissions have worked until now:
- Sellers agreed to a commission, which was then split between the listing agent and the buyer’s agent.
- The fee was deducted from the seller’s proceeds at closing.
For some people, this created the perception that sellers were paying both agents. In practice, however, the cost was typically passed on to buyers through the purchase price, buyers then covered the commission by securing a higher mortgage. In other words, it allowed the buyer to finance the commission paid.
In recent years, lawsuits challenged the status quo, accusing NAR and mega real estate brokerages like ReMax, ERA, and Compass just to name a few of inflating home prices by requiring sellers to offer at least some sort of commission to the buyer agent on the MLS. While the suits alleged the standard practice violated antitrust laws, the National Association of Realtors argued commissions have always been negotiable.
In the end, NAR and several large brokerages settled the matter by agreeing to a monetary payout and a change in policies on how commissions are handled.
- Buyers and sellers will now sign separate agent agreements and negotiate commissions directly. (Although for the time being the “old” co-broker model is also still available)
- Listing agents can no longer offer a buyer’s agent fee on the multiple listing service (MLS). At the same time, a seller can still cover a buyer’s agent’s commission.
- Buyers working with an agent must have a written agreement spelling out their agent’s commission before viewing any properties.
This shift to greater transparency is a significant change, making working with an experienced brokerage more important than ever.
Our Commissions Approach: Transparent, Upfront, and Customer-Focused
As far as how this will affect the way Bee Realty Corp does business, we do not expect a significant impact, as we have always prioritized transparency and clear communications regarding commission fees.
Long before the recent change, we made sure buyers and sellers fully understood the costs involved in a real estate transaction. We believe that by discussing fees upfront and outlining what customers could expect, we help avoid surprises at the closing table. A proactive communications approach was and is one of our brokerage’s core principles—one that takes on even greater importance in light of the new commission rules.
Experience tells us that informed customers are empowered customers. So, looking ahead, we’re doubling down on customer education, detailing how commissions work under the new rules. Buyers and sellers can be certain there are no hidden costs or confusion. Everything is plainly laid out and discussed early in the process.
Brokers like Bee Powell who become leaders in the real estate industry have one thing in common: the trust they build with their customers. Bee Realy Corp agents provide honest, upfront guidance that puts our customers first. Whether clarifying commission negotiations or explaining contract details, we make sure you are informed every step of the way!
Why Now Is Still A Great Time to Buy or Sell in Central Florida
The commission reset was expected to hit Florida particularly hard. For instance, the state’s high-volume market is a prime example of how commission structures can have a significant impact on listing and purchase prices. And while the new rule’s intent is to increase transparency, some are worried that buyers and sellers might find it confusing.
While these and other concerns are valid, experienced brokerages are well-prepared to address them. At Bee Realty Corp, we’re adapting quickly to ensure our customers are fully aware of how the new rules will affect their transactions, making the process as easy as possible.
At the end of the day, the real estate industry is no stranger to change, and this certainly won’t be its last update. With a take-charge, customer-first approach, we’re confident Central Florida home buyers and sellers can navigate these changes smoothly—and even find opportunities in them. Our experience and commitment to transparency make all the difference in helping you move forward with confidence.
As Volusia County’s largest producing private brokerage, Bee Realty Corp has unparalleled knowledge of the region’s real estate market. We’re dedicated to delivering exceptional results for buyers and sellers alike, whose interests we always put first.
As the real estate landscape continues to shift, one thing remains certain: choosing an experienced, proactive brokerage matters more than ever. Our deep market understanding, commitment to transparency, and personalized approach ensure you’re in capable hands. Reach out to us today about how we can be your trusted guide to a successful real estate journey. You can also call us at 386-275-7522.
