Navigating Recent Changes in Real Estate Regulations - What Buyers and Sellers Need to Know

What’s Changing? Recent changes in real estate regulations are designed to enhance transparency and consumerprotection. Primarily, these changes affect how real estate agents are compensated and how they represent clients. Whether these changes will actually benefit the consumer is still a debatable question.   Key Points for Consumers: 1. Written Buyer Representation Agreements: Previously, it wasn't always required, in Florida, for a real estate agent to have a written agreement with a buyer. Now, it is. This agreement outlines the services the agent will provide and how they will be compensated. Buyers, sellers and agents will be having different conversations about the transaction. Each side will be negotiating with the Realtor and the other side regarding price and commissions.2. Clearer Compensation: The way agent commissions are discussed is changing. Instead of pre-set percentages, agents will be more upfront about their fees. You can negotiate these fees just like any other service. Buyers agents may get paid by the buyer or even the seller - subject to a written agreement.3. Your Agent Works for You: Remember, as a buyer, your real estate agent represents your interests, not the seller's. Their job is to help you find the best property at the best price. If you are the seller - your agent may have more responsibility to represent you. Florida is still a Transaction Broker state, the agent represents the deal not necessarily their client - unless agreed upon in writing.   What This Means for You: ● More Control: You may have more power to negotiate terms and fees with your agent. More experienced agents will likely be charging customary fees. Beware of inexpensive representation - you may get what you pay for.● Transparency: You’ll have a clearer understanding of the costs involved in buying or selling a home.● Protection: The new rules are designed to protect consumers from unfair practices. If you are using a licensed Realtor they must adhere to a strict code of ethics, established by the National Association of Realtors, that promises they will deal fairly in all transactions.   If you have questions about these changes or your real estate transaction, don't hesitate to contact The GPS Group at ENGEL & VÖLKERS for clarification. We are here to guide you throughout the process.   Remember: While these changes may seem complex, the goal is to create a fairer and more transparent real estate market for everyone.