140. See infra Chapter III.C. 141. Although this section reports a range of stats that purport to measure "market share," this Report makes no attempt to specify a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT PROPERTY MARKET COMPETITORS: EVIDENCE 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 metropolitan location, there is little or no competitors amongst buyers, sellers, and realty 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 Citizen Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Market, Real Estate Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], offered 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 INTRODUCTION 4 (Dec - how much does it cost to get a real estate license. 2006), readily available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to become a real estate broker in california. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some firms might have a bigger than usual market share, however market shares are known to alter measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate One, Inc., 173 F. 3d 995, 1003 (sixth Cir. 1999). 153. Mid-America Realty 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 marketplace, 10 J.
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23, 27-28 (1995 ). The authors utilized a sample of 388 home 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 Property Market Efficiency," 17 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC PERSONNEL REPORT, supra note 9, at 102. As described infra, however, this is not always the case with regard to the entry of brand-new organization models 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 totally free entry into the profession and into the real estate brokerage organization."). The ability of newbie entrants to draw in customers relative to more knowledgeable representatives was not discussed 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 acquire a broker's license, typically after having stayed in business for several years, and passing a broker's license test. The specific requirements vary by state.").
One author has explained the service that brokers offer as not simply a completed match of purchaser and seller, however rather "a finished deal at some level of service supplied to the parties involved." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competition and the Housing Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers provide these services "provides the margin for nonprice competitors amongst brokers." Id. 164. As gone over in Chapter I of this Report, refunds are a meaningful component of price competitors between brokers in states that do not prohibit 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 six or 7 percent. These are the 'regular' modes for practically all markets, regardless of how they may vary from one another, and nationwide a very high percentage of property brokerage transactions took place at a commission rate of one or the other.
The degree of rate harmony we discovered plainly is irregular with a market characterized by the particular sort of vigorous competitors 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 twenty years https://www.yelp.com/biz/wesley-financial-group-nashville-3 ago, things actually have actually not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
GENUINE ESTATE RES. 187, 187 (2001) (" A number of studies have argued that the uniformity of the commission rate across different properties and regions is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof presented is the near-uniformity of commission rates in a given market. A typical argument is that the effort needed to sell a house is not a direct function of the prices and that if there is not collusion among brokers, there must be, at the really least, variation in commission rates across house cost ranges within a provided market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any standard, the real estate brokerage market is substantially less competitive than it needs to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would surely imply that average fees would be lower than they are today and that 'the 6% (or 7%) commission' would be not likely to remain as the modal charge."); John C.
8, 2005) (keeping in mind "a relatively widespread view that brokerage is not a competitive industry" based several understandings, consisting of: (1) extreme commission rates that are "sticky down" even as technology decreases brokers' expenses; (2) commission rates are higher in the United States than in many other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competition; (4) NAR's successful lobbying of Congress to restrict banks from getting in the property brokerage business; and (5) NAR-imposed constraints on discount and Web brokers' access to https://www.financialbuzz.com/wesley-financial-group-founder-issues-new-years-timeshare-sales-alert/ the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Changes in the Airline Ticket Circulation Market (July 2003) (talking about how Internet circulation decreased transaction costs in the sale of airline tickets), offered at http://www. gao.gov/ 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 Financier Defense Details Needed on Broker's Website (May 2000) (talking how to get out of a marriott timeshare about 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 Comment 10, at 3. 170. American Bankers Association, Public Comment 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 research study analyzing commission rates in the United States and a number of other countries concluded that U.S.