1. The Big Shift in Who Pays the Commission

Thanks to the 2024 NAR settlement (stemming from the Burnett v. NAR case), traditional commission structures have evolved dramatically.

Buyers now pay their own agent. Sellers in Florida no longer cover the buyer’s agent commission.

MLS listings no longer show buyer-agent compensation, preventing potential steering.

Why this matters:

• Buyers must budget upfront for their agent’s fee—a change from the past.

• Sellers will negotiate only with their listing agent, simplifying their cost structure.

2. What Sellers Should Know

Listing Agent Fees Remain Negotiable: Sellers continue to compensate their own listing agent, typically around 2.5–3%, but this has always been negotiable. What’s new is that this fee is now more openly discussed and scrutinized due to the broader conversation about transparency in real estate.

Direct Buyer-Agent Negotiations: Buyers may ask sellers to contribute toward their agent’s fee or request concessions to offset that cost.

Strategy Tip: In competitive Florida markets, some sellers may consider offering a credit toward buyer agent compensation as an incentive to drive more showings and offers.

3. What Buyers Need to Prepare For

Budget More Upfront: Buyers must account for their agent’s fee (often 2–3%) in addition to down payments and closing costs.

Negotiate Advocate Fees: Agents and buyers are required to sign a written representation agreement before touring properties, detailing services and fees.

Explore Different Compensation Models: Agents might offer flat fees, hourly rates, or performance-based fees to attract clients.

4. How Agents & Brokerages Are Adapting in Florida

New Compensation Models: Expect options like flat-fee services, hourly consulting, or hybrid commission structures.

Technology Integration: Apps and platforms now include fee calculators, contract management tools, and negotiation portals—empowering both buyers and sellers to make informed decisions.

5. What This Means for Both Sides

For sellers, the new commission structure offers simplified listing costs with fewer hidden fees and more transparent pricing comparisons. However, they may now face the added complexity of negotiating directly with buyers or their agents regarding compensation.

On the other hand, buyers benefit from greater transparency and more control over how they compensate their agent. The trade-off is that they must now budget for their agent’s fee out of pocket, which can add to their upfront expenses and require more financial planning.

6. Florida-Specific Considerations

Hot markets (Miami, Orlando, Tampa): Buyers’ agents may charge premium fees due to high demand and complex negotiations.

Rural or suburban areas: With lower competition, flat-fee or hourly models may be more common and cost-efficient.

Rebates and incentives: Some Florida agents may offer rebates or credits—legal in many states—as incentives to stay competitive.

7. Pro Tips for Smooth Transactions

Buyers: Negotiate fees upfront and get a written agency agreement in place before looking at homes.

Sellers: Discuss incentive strategies with your listing agent—sometimes helping with the buyer’s agent fee can secure better offers.

Everyone: Stay informed on MLS changes and new fee structures—transparency is now the cornerstone of trustworthy deals.

Final Takeaway

The 2024 changes put buyers in the driver’s seat, giving them clarity and choice. Sellers benefit from simplified cost structures but may face more negotiation. Florida’s real estate market is adapting fast, with flexible fee arrangements, tech-powered tools, and evolving buyer-seller dynamics.

Want help navigating this new landscape—whether setting commission terms, drafting representation agreements, or crafting compelling listings? I’m here to help. Let’s ensure your Florida transaction is informed, fair, and successful.