Who Pays Buyer Agent Fees in Florida

What changed in August 2024

The National Association of Realtors settlement led to two practice changes that took effect on August 17, 2024, and they apply in Florida like everywhere else:

• Written buyer agreement before touring: an agent who belongs to an MLS and works with you as a buyer must have a written agreement with you before you tour a home together, in person or live virtually.
• No compensation offers in the MLS: listings in the MLS can no longer show what the seller will pay a buyer's broker. Sellers can still offer it, but it has to be communicated another way, such as the listing brokerage's own website or a conversation between agents.

Florida Realtors' guidance is that there was no new state law behind this. It is an industry rule. Commissions were always negotiable and are not set by law, and that is still true.

What the buyer agreement must say

Under the NAR rules, the written agreement has to state the agent's compensation in a way that is objectively ascertainable, meaning a specific number, percentage or formula you can calculate. Open-ended language like "whatever the seller offers" does not comply. The agreement must also say that compensation is negotiable and not set by law, and the agent cannot be paid more than the agreement states, from any source.

Before you sign, read for:

• The fee: a percentage, a flat fee or another structure.
• Who pays first: most Florida agreements say the agent will seek payment from the seller or listing broker first, and you owe only the shortfall, if any.
• Term and scope: how long it lasts, and whether it covers all of Florida, one county or one property. A one-property tour agreement is common for buyers who are just starting.
• Cancellation: how you end it, and whether you would owe a fee if you buy a home you were shown during the term after leaving.
• Brokerage relationship: in Florida, agents are presumed to work as transaction brokers unless you agree to a single-agent relationship, which carries a fiduciary duty to you. The disclosure is part of the paperwork.

So who actually pays in a typical Florida deal

There are three common ways the buyer's agent gets paid, and a single deal can combine them:

• The seller offers it: many Florida sellers still offer buyer-broker compensation, because it widens the pool of buyers who can afford their home. The listing agent tells your agent, and it is paid from the seller's proceeds at closing.
• You ask for it in your offer: your offer can request that the seller pay your agent's fee, or give a seller concession you use toward it. The seller accepts, counters or refuses like any other term.
• You pay it: if the seller pays less than your agreement states, you cover the difference at closing, unless your agreement says otherwise.

Because the fee is usually paid from the seller's side, it often ends up inside the price. That is why the strength of the rest of your offer matters: a seller weighs what they net after paying everyone, and your headline number is only part of that.

Financing limits on what the seller can pay

If you are financing, your loan program caps how much the seller can contribute toward your costs. Those caps vary by loan type and down payment. When a seller pays your agent's fee directly as a seller expense, lenders have generally not counted it as a concession, but when you ask for a credit to pay it yourself, that credit may count against the cap. Ask your lender how they will treat it before you write the offer.

VA buyers had an older rule barring them from paying a buyer's agent, and the VA lifted it temporarily in August 2024. Confirm the current VA position with your lender. Cash buyers have no cap, which makes the negotiation simpler.

One more practical point: the fee shows up on the closing disclosure and the settlement statement, split by who pays it. Review those a few days before closing. If the numbers do not match what the contract and your agreement say, raise it then, while there is still time to correct it.

New construction and for-sale-by-owner homes

Builders in Florida commonly pay a cooperating broker who registers the buyer on the first visit. If you walk into a model alone, many builders will not pay an agent you bring later. Register your agent at the first visit or have them call ahead.

For-sale-by-owner sellers may or may not agree to pay your agent. Your agent can ask before you see the house. If the answer is no, you decide whether to pay it yourself, ask for a lower price instead, or skip the house.

How to keep your own costs predictable

• Negotiate the fee before you sign, not after you find a house.
• Ask your agent to tell you, before each showing, what the seller is offering, so there are no surprises at offer time.
• Decide in advance what you will do when a seller offers nothing: ask for it in the offer, ask for a price reduction, or pay it.
• Look at the whole closing picture. Florida buyers also pay for title-related costs in some counties (Miami-Dade and Broward by custom), lender fees, the note stamps of $0.35 per $100 and the 0.2% intangible tax if financing, inspections and insurance.

Prices give context. Statewide, Zillow's index is down 0.9% over the past year, and the single-family typical value is $396,809. In a softer market, sellers are generally more willing to cover buyer costs to get a deal done, though it varies by listing. In more expensive counties the dollars get larger: each 1% on Miami-Dade's $523,240 typical value is about $5,232, and on Collier's $552,087 about $5,521.

How I handle it with buyers

I put the fee and the "seller pays first" structure in writing at the start, and before we write an offer I tell you exactly what the seller is offering and what, if anything, would come out of your pocket. If you want a sample agreement to read before we talk, ask for one when you send the shortlist form.

This isn't legal advice. Read any agreement in full before you sign it.