140. See infra Chapter III.C. 141. Although this section reports a variety of stats that profess to measure "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 REAL ESTATE MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within cities. For instance, within the Washington, DC cosmopolitan area, there is little or no competition among buyers, sellers, and realty agents 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., Elder Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Realty Market, Real Estate Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], readily available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Remark 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY BUSINESS INTRODUCTION 4 (Dec - what does under contract mean in real estate. 2006), readily available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to invest in commercial real estate. pdf. 151. NAR, Public Comment 208, at 6 (" In a couple of markets, some firms might have a larger than normal market share, but market shares are known to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Realty One, Inc., 173 F. 3d 995, 1003 (6th Cir. 1999). 153. Mid-America Realty Co. v. Iowa Real Estate 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, Larger is Not Better: Brokerage and Time on the Market, 10 J.
Getting My How Does A Real Estate Agent Get Paid To Work
23, 27-28 (1995 ). The authors utilized a sample of 388 house sales in fiscal year 1991 from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Realty Market Efficiency," 17 JOURNAL OF THE AMERICAN REAL ESTATE 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, nevertheless, this is not always the case with regard to the entry of new organization models in the property brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively free entry into the occupation and into the genuine estate brokerage business."). The capability of amateur entrants to draw in clients relative to more skilled representatives was not talked about at the Workshop and, likewise, is not resolved in this Report. 158. Yun, Tr.
159. Yun Discussion, supra note 145, at 5, 7. 160. Daniels, Public Remark 92, at 1. 161. NAR, Public Comment 208, at 5 (" A representative can obtain a broker's license, typically after having actually been in service for numerous years, and passing a broker's license exam. The specific requirements vary by state.").
One author has actually described the service that brokers offer as not simply a finished match of purchaser and seller, https://www.facebook.com/wesleyfinancialgroup/photos/charles-mcdowell615-288-2000-ext-1002charlesmcdowellwesleyfinancialgroupcomcharl/521611881291034/ but rather "a finished deal at some level of service supplied to the parties involved." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers supply these services "offers the margin for nonprice competition amongst brokers." Id. 164. As discussed in Chapter I of this Report, rebates are a significant component of rate competitors between brokers in states that do not prohibit rebates. Anti-rebate laws are discussed in more detail in Chapter IV of this Report.
1983 FTC STAFF REPORT, supra note Article source 9, at 64. See likewise id. at 55 (" [W] e discovered local markets to regularly have commission modes at either six or seven percent. These are the 'typical' modes for practically all markets, no matter how they might differ from one another, and nationwide a really high portion of realty brokerage transactions took place at a commission rate of one or the other.
The degree of rate uniformity we discovered plainly is inconsistent with a market characterized by the specific kind of vigorous competition common in lots of other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than 20 years back, things truly have actually not changed that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
REALTY RES. 187, 187 (2001) (" A variety of research studies have actually argued that the harmony of the commission rate throughout various residential or commercial properties and areas is an indication of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. REAL ESTATE FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof provided is the near-uniformity of commission rates in an offered 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 ought to be, at the minimum, variation in commission rates across home cost ranges within a given market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any standard, the property brokerage market is considerably less competitive than it ought to be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive outcome would undoubtedly imply that average charges would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to stay as the modal fee."); John C.
8, 2005) (keeping in mind "a fairly widespread view that brokerage is not a competitive market" based numerous perceptions, including: (1) extreme commission rates that are "sticky downward" even as innovation reduces brokers' expenses; (2) commission rates are higher in https://omaha.com/business/consumer/wesley-financial-group-diversifies-with-launch-of-wesley-mutual/article_1cf167bd-44c0-535b-ab57-13075882968f.html the United States than in many other developed countries; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws limiting competition; (4) NAR's effective lobbying of Congress to prohibit banks from going into the property brokerage business; and (5) NAR-imposed constraints on discount and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Changes in the Airline Company Ticket Circulation Market (July 2003) (discussing how Internet circulation reduced transaction expenses in the sale of airline company tickets), available at http://www. gao.gov/ brand-new - what is the difference between a real estate agent and a broker. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Security Information Needed on Broker's Web Websites (May 2000) (discussing how Web brokerages charge far less commission per trade on securities), offered at http://www.
items/gg00043. pdf. 169. See Hahn, Tr. at 89; American Bankers Association, Public Remark 10, at 3. 170. American Bankers Association, Public Comment 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 study analyzing commission rates in the United States and a number of other nations concluded that U.S.