A guide to buying in Florida
The Sunshine State remains a popular place for a holiday home or relocation but there have been some key changes to the buying process. These changes are part of a legal settlement by the National Association of Realtors (NAR) to provide more transparency and flexibility for buyers and sellers - especially around how agents are paid.
The new rules from August 2024 are designed to give buyers more control and clarity around agent fees. In Florida commission is now often referred to as agent compensation, which is confusing when in the UK this term means something (usually money) awarded because of loss or injury.
But the new rules encourage honest, open conversations so you the buyer can choose what suits your budget and needs. Here are the basics, provided by Kylie Palazzo of Homes of America Realty Group.
Do I need to use a realtor or real estate agent when buying a home in Florida: what’s the difference?
While you’re not legally required to use a real estate professional, having one on your side is strongly recommended, especially if you’re purchasing from the UK. But what is the difference? An estate agent (or real estate agent in the USA) is licensed to help you buy or sell property.
A realtor is also licensed, but they’re a member of the National Association of Realtors (NAR) and as a trademark a logo is often used to signify their status: REALTOR®. This denotes membership and that they must follow a strict code of ethics, promising professionalism, honesty, and to put your best interests first. In the United States the ‘listing agent’ is the same as the seller’s agent.
What rules have changed recently?
Since August 2024, buyers are now required to sign a written agreement with their agent before touring any home. This agreement outlines:
- The services you’ll receive
- How your agent will be compensated (paid)
- That commissions are fully negotiable and not set by law
Previously, buyers didn’t have to sign anything upfront - but now it’s a key part of the process.
What does ‘touring a home’ mean?
This means visiting a property in person or having your agent give you a virtual tour via video. The moment you view a property in either of these ways, that written agreement must be in place. It ensures everyone is clear on how the agent will be working for you.
Do I have to pay my REALTOR® directly now?
The system has been that the buyer’s agent was usually paid 2–3% of the home’s sale price, and that amount was covered by the seller when the home sold. The seller’s agent would list that percentage on the MLS (Multiple Listing Service) so buyer’s agents knew what they’d earn. Now, the buyer’s agent commission is no longer listed on the MLS and is fully negotiable – as per below:
- You (the buyer) may pay a fixed fee or commission
- The seller may offer a credit (concession) to cover your agent’s fee
- The listing agent may still share their commission, but this must be arranged off the MLS
Your agent will guide you through the options, everything must be clearly explained and agreed upon in writing.
Should I ask about agent fees before starting my home search?
Absolutely. Ask your agent:
- How will they be paid?
- What services are included?
- Are there any costs you’ll need to cover?
Having this conversation early avoids surprises and sets clear expectations. The costs of buying a home in Florida depends on several variables—such as the type of home, location, and how the contract is negotiated.
Closing costs for a cash buyer can be as low as $1,000, especially if the buyer’s agent has negotiated their 2–3% commission to be paid by the seller. Title insurance is sometimes paid by the seller, depending on the county, but in others, it’s a buyer’s expense. Home inspections, while optional (not legally required), are highly recommended and usually cost $350–$500.
Can I negotiate my agent’s fees?
Yes! Agent fees are completely negotiable. You and your agent can agree on a flat fee, an hourly rate OR a percentage of the home’s price (this is what is most commonly practiced in Florida and 2-3%. This must be clearly stated in your agreement before any home viewings begin.
Would I have to pay my agent if I don’t find or buy a home on my trip?
It all depends on the agreement you have with your realtor. So be sure to check what you are signing first! But generally, no, you are not obliged to pay your realtor if you do not find the right home for you.
Find out more: www.HomesofAmericaRealtyGroup.com
