BrokerageIndustry News

Battle erupts over low-commission real estate model

New Florida brokerage takes market share in Tampa Bay area

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A real estate industry war has broken out in Florida over low-commission brokerage. Home Discovere, a brokerage model with 2 percent and 4 percent total commission plans, has quickly become a top player in the Tampa-area market. Home Discovere started as a mortgage operation in September 2000, and rapidly grew to include a title company, a real estate brokerage company and a home services division. The real estate brokerage company began operations in 2002. Along the way, Home Discovere has managed to enrage some traditional real estate agents and brokers. A Home Discovere television advertisement drew an ethics complaint earlier this year from a board member of a local Realtors association who claimed the ad cast an unfavorable light on traditional Realtors. And some real estate agents at competing companies have complained that buyers who work with an outside agent are sometimes left to pay the agent's commission out of their own pockets. Traditional brokerages are so upset about th...