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Key Changes of the Florida Real Estate Laws for Buyers and Sellers of Merritt Island, Florida Properties

The real estate landscape in Florida, particularly in Merritt Island, has undergone significant changes due to new real estate commission rules effective from mid-2024. These changes impact how buyers and sellers navigate the market, negotiate commissions, and handle transactions. Here’s a detailed overview of the key changes and what they mean for buyers and sellers in Merritt Island.

1. Shift in Commission Payments

Old Rule: Traditionally, sellers paid a commission that covered both their agent and the buyer’s agent, typically around 5-6% of the home’s sale price.

New Rule: Sellers are no longer required to offer a split commission through the MLS (Multiple Listing Service). Buyers now need to negotiate and pay their agent’s commission directly, which introduces more transparency and potential cost-saving opportunities for sellers.

2. Buyer’s Agent Agreements

New Requirement: Buyers must sign a written agreement with their agent before any property showings. This agreement will outline the agent’s services and their compensation. This move ensures that buyers are fully aware of the costs involved upfront and can negotiate terms that best suit their needs.

3. Navigating Local Waterways and Property Inspections

For waterfront properties in Merritt Island:

• Inspections: Ensure thorough inspections of sea walls and docks, which are crucial for protecting against erosion and ensuring safe boating activities.
• Boating Considerations: Understand the draft and canopy height of your boat. The Banana and Indian Rivers are shallow and have low bridges that can limit the size of boats. Using a realtor like Rick Houston, who shows properties by pontoon boat, can give you a unique perspective on the property and its accessibility by water.

4. Higher Costs for Waterfront Properties

Waterfront homes typically have higher costs associated with them:

• Insurance: Expect higher premiums due to flood risks and proximity to water.
• Taxes and Maintenance: Property taxes and maintenance costs for sea walls, docks, and shoreline protection are generally higher. Factor these into your budget when considering a waterfront property.

5. Market Trends and Future Prices

Real estate experts predict a gradual shift towards more transparent and competitive commission structures, which could influence the overall market dynamics. According to industry insights, waterfront properties in Merritt Island might see a slight price increase due to high demand and limited inventory, despite the new commission rules aiming to foster a more consumer-driven marketplace.

6. Closing Costs and Legal Considerations

Closing Costs: Buyers should be prepared for higher closing costs, including inspection fees, appraisal fees, and additional legal expenses. The shift to buyer-paid commissions means these costs are now more directly under the buyer’s control but must be carefully managed.

Legal Implications: Ensure that all agreements and contracts are reviewed by a real estate attorney to comply with the new regulations and to protect your interests throughout the transaction process.

Conclusion

The new real estate commission rules in Florida mark a significant shift in how buyers and sellers approach transactions. By understanding these changes, negotiating effectively, and working with knowledgeable local realtors like Rick Houston, buyers and sellers in Merritt Island can navigate the evolving landscape successfully. Stay informed and proactive to make the most of these new opportunities in the Merritt Island real estate market.

For further reading and updates on the new real estate commission rules, you can refer to sources like Scott Harris and Real Estate News.