People selling their homes stand to benefit the most from an overhaul in the way real estate agents get paid, according to housing and property experts in Tampa Bay.
It’s all part of an attempt by the National Association of Realtors to settle a series of antitrust lawsuits that argue the group’s current policies unfairly drive up the cost of selling a home.
The National Association of Realtors has long required agents to advertise a commission rate when listing a home on the Multiple Listing Service, a database Realtors use to find available properties. That commission — usually around 6% — is split between the listing agent and the buyer’s agent once the home sells.
On Friday, the association agreed to scrap that policy and pay $418 million in damages to plaintiffs across the country.
The National Association of Realtors “has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible,” said the association’s interim CEO, Nykia Wright, in a statement Friday. “This settlement achieves both of those goals.”
If the settlement is approved by a judge, buyers and sellers will each be responsible for paying their own agents starting in mid-July.
Sellers will benefit the most, said Lei Wedge, a professor of finance at the University of South Florida Muma College of Business. “They won’t have to take the buyer’s agent fee out of what they get from the sale,” she said.
Some experts speculate that home prices will drop as a result, but Wedge said she doubts most sellers will be willing to pass the savings along to buyers.
Removing commissions from the Multiple Listing Service could leave more room for negotiation instead of defaulting to the standard 6% rate. Analysts from the financial services firm TD Cowen predict that commissions could fall by as much as 25%-50%.
Some buyers may choose not to pay an agent at all to save money. Michael Wyckoff, a managing broker for Engel & Völkers Real Estate in Madeira Beach, fears that will end up hurting the people who need help the most.
“First-time homebuyers, those who have been traditionally underserved in the home ownership market,” he said. “They’re less likely to be able to pay out of pocket.”
He noted that home loans from the Federal Housing Administration and the U.S. Department of Veterans Affairs can’t be used to cover commission.
Reduced profits for real estate agents could lead to a mass exodus from the industry. One report from investment firm Keefe, Bruyette & Woods predicted that changes to the commission structure could eventually cause as many as 1 million agents to abandon the profession.
Those who stay will have to adapt to survive, Wedge said. She predicts some buyers’ agents may switch to charging a flat fee instead of a percentage to scoop up more business. As buyers increasingly turn to online platforms like Zillow to find homes, a new type of agent that just helps with contracts and closings could emerge.
“This changes how we do some of our business but it doesn’t take away the extreme complexities involved in getting a real estate transaction closed,” Wyckoff said. “That’s where our value comes in, and I think some of that’s been lost or swept under the rug with this lawsuit.”
APOLLO BEACH — Their story unfolded like a National Lampoon movie.
Four friends needed a place to park their floating bar, bought an island, ran afoul of the powers-that-be and then fought for their right to party.
Now, a little more than six years after their purchase, they are selling Pine Key Tampa Bay — better known as the apostrophe-shaped Beer Can Island located between Apollo Beach and MacDill Air Force Base.
The listing price is $14.2 million and includes the 9-acre island plus another 60 acres of surrounding submerged land, said Cole Weaver, one of the owners.
On Friday, the owners will launch PineKeyTampaBay.com with further details. Interested buyers can call 813-434-3366.
“We are ready to move on to our next chapter,” Weaver said. “We’ve enjoyed the experience and the camaraderie and the friendships we’ve made. But it’s time for us to move on.”
The island is now closed to the public.
![Cole Weaver on the floating tiki bar parked on Pine Key Tampa Bay in 2019, shortly after he and three friends purchased the property also known as Beer Can Island. [Times (2019)]](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 6589 4478"/%3E "Cole Weaver on the floating tiki bar parked on Pine Key Tampa Bay in 2019, shortly after he and three friends purchased the property also known as Beer Can Island. [Times (2019)]")
Their story started with the floating bar barge called Tiki Bay Island. The four friends — Weaver, Russell Loomis, James West and John Anthony Gadd — built a motorized wooden deck topped by a tiki roof as a venue for a private party business.
Wherever they docked it, neighbors complained. They sought permanent waterfront property and thought of Pine Key, but the island wasn’t for sale.
It was owned by Imperial Island, whose president also served as president of the Tampa Bay Marina. And it was where Tampa Bay Marina dropped sand from dredging operations at its marina in Apollo Beach.
The company had no interest in changing that practice. So, the friends made an offer: Sell the island at its appraised worth and they would allow sand dumping to continue there. On Dec. 22, 2017, the deal was sealed for the bargain price of $63,650.
The new owners docked their tiki boat and then decided to expand the party enterprise by bringing their brand of order to the island.
Before, it had been a lawless party place for boaters and campers to visit without supervision or amenities, earning it the Beer Can Island nickname.
![Pine Key Tampa Bay owners clean the island in 2021.](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 5245 3238"/%3E "Pine Key Tampa Bay owners clean the island in 2021.")
The friends added bathrooms, trashcans, food trucks and security guards. They cleaned the property regularly and sold memberships that provided access to private structures and a designated camping ground. They also gave it an address — 1 Beer Can Island Way.
Then Hillsborough County argued that the business model ran afoul of code violations and brought safety concerns.
The owners countered that the island was safer than it had previously been because they hired off-duty emergency medical technicians and had first aid kits. The island actually did not have any zoning — which they claimed meant the county didn’t have jurisdiction over it.
But they agreed to discuss zoning options. The county wants to treat the island as a private nature preserve, but that would effectively eliminate its use as a commercial bar and special events center.
That conversation is ongoing.
The next owner will also have to deal with erosion. The island was once around 23 acres — years before Weaver and his friends purchased it — and they’ve battled the waves ever since. Last year, it was under 5 feet of water during Hurricane Idalia. The next owner could also add to its size due to the submerged property, Weaver said.
“Pine Key offers a unique opportunity for innovation,” a news release for the sale says. “With the right vision and willingness to collaborate with Hillsborough County, opportunities for development could be explored and expanded upon. … In Hillsborough, there are currently four other islands with residential zoning. … These instances provide valuable insights into the diverse residential zoning options already enjoyed within the county.”