140. See infra Chapter III.C. 141. Although this area reports a variety of statistics that purport to determine "market share," this Report makes no attempt to define an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REALTY MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within cities. For example, within the Washington, DC cosmopolitan area, there is little or no competitors among purchasers, sellers, and real estate representatives across the micro-markets of Montgomery County, MD, Fairfax County, VA, and southwest Washington, DC). 143. Yun, Tr. at 220. 144.
145. Lawrence Yun, Ph. D., Senior Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Property Market, Realty Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Comment 208, at 7 (comment). 149. Id. 150. REALOGY, REALOGY ORGANIZATION INTRODUCTION 4 (Dec - how to invest in commercial real estate. 2006), offered at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to choose a real estate agent for selling. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some firms might have a larger than normal market share, but market shares are understood to alter measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate One, Inc., 173 F. 3d 995, 1003 (6th Cir. 1999). 153. Mid-America Real Estate Co. v. Iowa Realty Co., No. 4:04- CV-10175, 2004 WL 1280895, at * 8- * 9 & n. 5 (S.D. Iowa 2004), rev 'd on other grounds, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Bigger is Not Better: Brokerage and Time on the marketplace, 10 J.
What Percentage Do Real Estate Agents Get Things To Know Before You Get This
23, 27-28 (1995 ). The authors utilized a sample of 388 home sales in fiscal year 1991 from the several listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Real Estate Market Performance," 17 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC STAFF REPORT, supra note 9, at 102. As explained infra, however, this is https://www.nashvillepost.com/business/finance/article/21143258/franklin-firm-launches-insurance-company not always the case with regard to the entry of new business designs in the realty brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly totally free entry into the profession and into the real estate brokerage business."). The ability of beginner entrants to draw in customers relative to more skilled agents was not discussed at the Workshop and, similarly, is not resolved in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, 7. 160. Daniels, Public Remark 92, at 1. 161. NAR, Public Remark 208, at 5 (" A representative can get a broker's license, normally after having stayed in business for numerous years, and passing a broker's license exam. The precise requirements vary by state.").
One author has actually described the service that brokers provide as not merely a finished match of buyer and seller, however rather "a finished transaction at some level of service provided to the parties included." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competitors and the Housing Market, 24 REAL ESTATE ECONOMICS 293, 295 (1996 ).
Fascination About How To Start A Real Estate Investment Company
Id. The degree to which brokers provide these services "offers the margin for nonprice competitors among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a meaningful part of price competitors in between brokers in states that do not restrict refunds. Anti-rebate laws are gone over in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See also id. at 55 (" [W] e discovered regional markets to regularly have commission modes at either 6 or 7 percent. These are the 'normal' modes for essentially all markets, no matter how they might vary from one another, and nationwide an extremely high portion of realty brokerage deals happened at a timeshare calendar 2019 commission rate of one or the other.
The degree of rate uniformity we discovered plainly is inconsistent with a market defined by the particular sort of vigorous competition common in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than twenty years back, things actually have actually not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a research study which was finished and released in 1983.
PROPERTY RES. 187, 187 (2001) (" A variety of studies have actually argued that the uniformity of the commission rate across different properties and areas is an indicator of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. REALTY FIN. & ECON.
some collusion between brokers through the [MLS] The main proof presented is the near-uniformity of commission rates in a provided market. A common argument is that the effort needed to offer a house is not a direct function of the list prices which if there is not collusion among brokers, there must be, at the very least, variation in commission rates throughout house rate ranges within an offered market.").
8 Simple Techniques For What Do Real Estate Agents Do
See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any standard, the realty brokerage market is significantly less competitive than it needs to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would certainly suggest that average fees would be lower than they are today and that 'the 6% (or 7%) commission' would be not likely to stay as the modal charge."); John C.
8, 2005) (keeping in mind "a fairly widespread view that brokerage is not a competitive industry" based a number of perceptions, including: (1) excessive commission rates that are "sticky downward" even as technology decreases brokers' costs; (2) commission rates are higher in the United States than in lots of other industrialized countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competition; (4) NAR's effective lobbying of Congress to prohibit banks from going into the genuine estate brokerage company; and (5) NAR-imposed restrictions on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Modifications in the Airline Company Ticket Circulation Industry (July 2003) (talking about how Web circulation decreased deal expenses in the sale of airline company tickets), available at http://www. gao.gov/ new - what is cam in real estate. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Security Details Needed on Broker's Web Websites (May 2000) (discussing how Web brokerages charge far less commission per trade on securities), offered at http://www.
:strip_icc()/calculating-property-value-with-capitalization-rate-2866800-v3-5c13d7dbc9e77c000160837f.png)
items/gg00043. pdf. 169. See Hahn, Tr. at 89; American Bankers Association, Public Comment 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 study evaluating commission rates in the United States and numerous other nations concluded http://www.wesleygroupreviews.com/gallery/ that U.S.