Florida real estate agents brace for a major shift in the way they do business

WINTER PARK, Fla. — Real estate agents in Florida and across the country are bracing for a major shift in the way they do business.

Starting Saturday, new rules roll out that could change the way agents get paid helping people buy and sell homes.

Two of the biggest changes include agents no longer being allowed to advertise commissions when posting a home to the multiple listing services (MLS).

Buyers will also have to sign a written agreement with their agent outlining how much they will get paid. 

Jared Dunn, of LPT Realty, says the industry has been preparing for the change for some time now.

“We have agents across the nation doing trainings to get ready in order to do what they need to do in order to represent their clients to the best of their ability, myself included,” said Dunn.

Dunn said the new rules will change what he does before showing a home.

“One of them is I do a pre-show showing agreement where I get with my clients ahead of time, and we just agree with the commission,” said Dunn.

A series of lawsuits filed against the National Association of Realtors have forced changes across the board.

The lawsuits alleged that the compensation rules, which forced selling agents to advertise compensation for buyer’s agents on listings, essentially amounted to a monopoly, which reduced earnings and artificially inflated commission prices.

The settlement saw the country’s largest trade organization agree to a list of industrywide changes and pay more than $400 million in damages.

Many in the industry believe changes will encourage buyers and sellers to shop around for agents offering lower commission rates or flat fees, and some may give up using an agent altogether. 

Dunn does not see it that way.

“The sellers are still going to get compensation, especially in this market, if they want their homes to be shown,” he said. “Because that’s the way the market has always been.”

Rose Kemp, who has been a real estate agent for more than 20 years and is president of the Orlando Regional Realtor Association, said she knows firsthand that agents and their skills are crucial for buying and selling property properly.

“Typically, the biggest transaction they make in their life, or it’s an investment, nest egg, retirement whatever it might be,” she said. “That is why you need a Realtor.”