R
eal estate brokers are now facing a new challenge due to recent commission rules changes. These changes could be particularly difficult for mediocre real estate agents, including amateurs and those who may not be worth their price to homebuyers.

    The reason this matters is because the National Association of Realtors (NAR) has stopped allowing agents to advertise their commission rates in the Multiple Listing Service (MLS), which is where real estate agents post homes for sale. Buyers are now responsible for ensuring their agent gets paid, and they must sign a compensation agreement before an agent can show them listings.

    These changes are expected to reduce real estate commissions, which have already decreased a bit since the settlement was announced in March.

    Before these changes, sellers and their brokers would negotiate a commission (usually around 5%-6%), which the broker would then split with the buyer's agent. The buyer's agent's portion was what was advertised in MLS, and the seller would pay both agents out of their home sale earnings.

    Under the new rules, sellers can still choose to pay for the buyer's agent through negotiation, which many sellers may choose to do because it will expand their pool of potential buyers.

    In Florida, where real estate agents are more prevalent than in any other state (about three of every 1,000 workers are real estate agents), these changes could have a significant impact. In Tampa Bay, the average commission percentage paid to buyers' agents has not changed much so far, standing at 2.43% in July, a slight drop from January's rate of 2.48%.

    Industry veterans expect these changes to weed out lackluster agents, potentially leading to a drop in commissions to as low as 1% to 1.5% per agent on each side nationwide.