A lot was happening in Southwest Florida in August 2024. The temperatures were in the 90s, Tropical Storm Debbie had saturated the region and we still had two months to go before the devastation of Hurricane Milton. For Realtors, though, the month marked an industry milestone more memorable than the weather.

Aug. 17, 2024, was the day when fundamental changes were implemented to the standard buying and selling process. A new policy is revolutionizing the former norms: The National Association of Realtors has agreed to a new standard that will pave the way for more transparency in the industry. Agents, buyers and sellers all will be affected by these new rules, changing how commissions are paid.

In March 2024, the NAR reached an agreement, ending litigation claims of participating plaintiffs related to real estate transactions, negotiations and commissions. Now, a written agreement is required, changing the environment of the real estate industry.

“This settlement is the topic with Realtors right now,” said Susan Pinky Benson of REMAX, a Naples Area Board of Realtors member. “Sellers now have to budget class action lawsuit commissions” into their asking prices.

The lawsuit stated that it was unfair for sellers to be responsible for paying the buyer’s real estate agent.

Benson, who is also a noted speaker at real estate conferences nationwide, knows Southwest Florida is a unique area for the market, having also previously sold real estate in the Tampa area. She sees the mix of demographics in Collier County as a challenge for agents.

“The buyer and broker relationship is different here,” she said. “We have those people buying their second and third homes; a luxury mindset alongside the workers of the area who keep the hospitality industry alive. The guy pouring your martini needs to be able to live here to work here.”

Benson explained that during the coronavirus pandemic, when the industry was uniquely challenged, many experienced Realtors closed up shop, and transactions were handled by less-seasoned agents who had not developed the skills for nuanced interactions.

“Now we are in season,” she said. “These new policies will be applied. The written agreements with buyers are important since I can say which services have been agreed to, my responsibilities and the amount we negotiate.

“The buyer needs to sign this written agreement with their real estate agent, laying out all services to be provided and the cost, which is negotiable.”

This is a radical shift in the standards. Buyers used to be able to tour properties alongside an agent with no written agreement. Now a formal decree must be in place outlining how your agent will be paid and the negotiable amount.

This is especially important for buyers with less financial security who might have difficulty enlisting the help of an agent to represent them in their search. Even though the written document does not obligate them to any purchase, in a market such as Naples, these buyers might find it hard to enlist the help of an agent to represent them. They will now need to pay the agent with their own money, potentially unfeasible for some home shoppers.

Sellers are also given a new opportunity to set property aside from similar houses for sale; they have the choice to attract more buyers by offering to pay the buyers’ commission. It might prove a selling point.

But ultimately, said Benson, the policies make for a clearer negotiating process.

“Let’s say Sally from Idaho wants to come and buy a house in Naples,” she said. “She will now be required to negotiate my fee and I provide her a list of what I will be doing for that fee in order to tour properties.”

Newer agents who entered the industry during the pandemic may need to sharpen their business skills to navigate this new environment. But ultimately, the new rules usher in a period of transparency in the field.

With more clarity and detailed guidelines, this free market approach to buying and selling homes has a sunny forecast.

This story was published in The Naples Press on Jan. 24.