New Buyer Agreement Rules: What the August 17 Changes Mean in Manatee & Sarasota
If you've been house hunting in Bradenton, Lakewood Ranch or Sarasota this summer, you may have seen headlines about "new real estate rules." As of Saturday, August 17, 2024, those rules are in effect. They came out of the National Association of REALTORS® settlement, and they change some of the paperwork and conversations at the start of a home search.
The short version: you can still tour homes, make offers and get great representation. You'll just sign a clear, written agreement with your agent first. Here's what changed and what it means for buyers and sellers here in Manatee and Sarasota counties.
What Changed on August 17
According to Florida Realtors' summary of the practice changes, two big changes took effect nationwide:
A written agreement before touring. An MLS participant working with a buyer must have a written agreement with that buyer before touring a home. That includes in-person showings and live virtual tours.
No offers of buyer-agent compensation on the MLS. Listings in the MLS can no longer show an offer of compensation to the buyer's broker. Sellers can still offer compensation to a buyer's agent; that conversation just happens off the MLS. Sellers can also still offer buyer concessions on the MLS, such as help with closing costs.
NAR's own consumer guide to the settlement is worth reading too. It stresses that commissions have always been negotiable and still are.
What Goes Into a Buyer Agreement
Under the new rules, a written buyer agreement must:
State the agent's compensation clearly. It must be objective, such as a flat fee, a percentage or an hourly rate. It can't be open-ended, like "whatever the seller offers."
Cap what the agent can receive. Your agent can't receive more from any source than the amount you agreed to.
Say plainly that fees are negotiable. The agreement must state that broker fees are fully negotiable and not set by law.
Florida Realtors has updated its standard forms to reflect these requirements, so the paperwork you'll see is designed around the new rules.
What This Means for Buyers in Manatee & Sarasota
Expect the agreement conversation up front. Before we tour that pool home in Parrish or that condo near downtown Sarasota, we'll sit down (or hop on a call) and go over the agreement together. That way you'll know exactly what services you're getting and what they cost before you fall in love with a house.
You don't need an agreement just to talk. Chatting with an agent at an open house or asking about their services doesn't require a signed agreement. The requirement applies before touring. NAR's guidance also encourages buyers to ask agents about their services, compensation and agreement terms before signing. I welcome those questions.
Know who pays. In many cases the seller may still agree to pay some or all of the buyer's agent fee, or offer concessions you can put toward costs. If the seller doesn't cover it, the buyer is responsible under the agreement. That's why it matters to talk through your budget and offer strategy together. Asking the seller for a contribution can be part of your offer.
Rates are helping a little. On the financing side, Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed average at 6.49% for the week of August 15, 2024, down from 7.09% a year earlier. That's a meaningful improvement in monthly payments.
What This Means for Sellers
If you're selling in Bradenton, Palmetto or Sarasota, you have choices to make with your listing agent:
Whether to offer buyer-agent compensation. You can still offer it; it just can't appear in the MLS.
Whether to offer concessions. Closing-cost help can still be advertised on the MLS, and it can make your home stand out to buyers stretching to afford today's prices and insurance costs.
How to compare offers. An offer that asks you to cover the buyer's agent fee isn't automatically weaker than one that doesn't. What matters is your net proceeds and how strong the terms are. Your listing agent should walk you through the numbers side by side.
What This Means for Investors
For investors buying duplexes, small multifamily or rentals, the rules work the same way: sign the agreement before touring. If you buy often, consider an agreement written to fit your strategy and timeline rather than signing a new one for every property. And build any buyer-agent fee into your numbers from the start, the same as closing costs, inspections and reserves.
My Take
These changes add some paperwork, but they also add clarity. My job hasn't changed: help you find the right property in Manatee or Sarasota, negotiate hard and get you to closing with no surprises.
Have questions about the new buyer agreements or how they'd work for your purchase or sale? Call or text me at (941) 993-8311 or reach out through my contact page. I work with clients in English and Spanish.
Luis Odon, REALTOR® Keller Williams Coastal Living II (941) 993-8311
This article is for general information only and is not legal or financial advice. Rules and forms may change; consult a qualified professional about your situation. Equal Housing Opportunity.
