140. See infra Chapter III.C. 141. Although this area reports a variety of statistics that claim 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 PROPERTY MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within cosmopolitan areas. For instance, within the Washington, DC city, there is little or no competition among buyers, sellers, and real estate agents throughout 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 Citizen Economist, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Industry, Realty 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 ORGANIZATION OVERVIEW 4 (Dec - how to generate real estate leads. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what does a real estate broker do. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some companies may have a bigger than usual market share, however market shares are understood to alter 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 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, Larger is Not Much Better: Brokerage and Time on the Market, 10 J.
The Buzz on What Does Contingent Mean Real Estate
23, 27-28 (1995 ). The authors utilized a sample of 388 home sales in fiscal year 1991 from the numerous listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Realty Market Performance," 17 JOURNAL OF THE AMERICAN REALTY AND URBAN ECONOMICS sell r timeshare ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC STAFF REPORT, supra note 9, at 102. As described infra, nevertheless, this is not necessarily the case with respect to the entry of brand-new service designs in the property brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively complimentary entry into the occupation and into the realty brokerage organization."). The ability of newbie entrants to draw in clients relative to more skilled agents was not gone over at the Workshop and, similarly, is not dealt with in this Report. 158. Yun, Tr.
159. Yun Discussion, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Comment 208, at 5 (" A representative can acquire a broker's license, generally after having actually stayed in business for numerous years, and passing a broker's license exam. The specific requirements vary by state.").
One author has described the service that brokers provide as not simply a finished match of purchaser and seller, but rather "a completed deal at some level of service supplied to the parties included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
Our How To Find A Real Estate Agent Ideas
Id. The level to which brokers supply these services "supplies the margin for nonprice competition among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a significant part of price competitors in between brokers in states that do not prohibit refunds. Anti-rebate laws are talked about in more information in Chapter IV of this Report.
1983 FTC STAFF REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e found local markets to regularly have commission modes at either 6 or seven percent. These are the 'regular' modes for practically all markets, despite how they may differ from one another, and nationwide a really high percentage of genuine estate 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 identified by the particular sort of energetic 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 20 years ago, things really have actually not changed that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a research study which was completed and published in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A number of research studies have actually argued that the harmony of the commission rate across various residential or commercial properties and areas is an indication of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. REAL ESTATE FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof presented is the near-uniformity of commission rates in an offered market. A common argument is that the effort required to sell a home is not a direct function of the sales cost which if there is not collusion amongst brokers, there should be, at least, variation in commission rates across home rate ranges within a provided market.").
How How Does A Real Estate Agent Get Paid can Save You Time, Stress, and Money.
See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any requirement, the realty brokerage market is considerably less competitive than it must be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive outcome would definitely indicate that average fees would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to remain as the modal cost."); John C.
8, 2005) (noting "a relatively extensive view that brokerage is not a competitive industry" based a number of perceptions, consisting of: (1) excessive commission rates that are "sticky downward" even as innovation lowers brokers' expenses; (2) commission rates are higher in the United States than in many other industrialized nations; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws restricting competitors; (4) NAR's successful lobbying of Congress to forbid banks from going into the realty brokerage organization; and (5) NAR-imposed constraints on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact Take a look at the site here of Modifications in the Airline Company Ticket Circulation Industry Look at this website (July 2003) (talking about how Internet distribution reduced deal costs in the sale of airline tickets), readily available at http://www. gao.gov/ new - how to make money in real estate with no money. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Defense Info Needed on Broker's Web Sites (May 2000) (talking about how Internet brokerages charge far less commission per trade on securities), readily available at http://www.
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 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study analyzing commission rates in the United States and numerous other countries concluded that U.S.