140. See infra Chapter III.C. 141. Although this section reports a range of stats that purport to determine "market share," this Report makes no effort to specify a pertinent 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 RESIDENT MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting existence of "micro- markets" within cities. For instance, within the Washington, DC urban location, there is little or no competitors amongst buyers, sellers, and real estate representatives 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 Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Market, Real Estate Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], offered at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Comment 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY SERVICE SUMMARY 4 (Dec - how to generate real estate leads. 2006), offered at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to get leads in real estate. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some companies might have a larger than usual market share, but market shares are known 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 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 premises, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Bigger is Not Much Better: Brokerage and Time on the marketplace, 10 J.
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23, 27-28 (1995 ). The authors used a sample of 388 house 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 Property 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 not always the case with regard to the entry of new company designs in the property brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly free entry into the occupation and into the realty brokerage company."). The ability of novice entrants to bring in customers relative to more experienced agents was not discussed at the Workshop and, likewise, is not addressed 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 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 examination. The precise requirements differ by state.").
One author has described the service that brokers offer as not merely a finished match of purchaser and seller, however rather "a finished transaction at some level of service provided to the celebrations involved." Geoffrey K. Turnbull, Property Brokers, Nonprice Competition and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
Examine This Report on How Does A Real Estate Agent Get Paid
Id. The level to which brokers supply these services "supplies the margin for nonprice competition amongst brokers." Id. 164. As gone over in Chapter I of this Report, refunds are a meaningful part of rate competition in between brokers in states that do not forbid rebates. Anti-rebate laws are discussed in more detail in Chapter IV of this Report.
1983 FTC STAFF REPORT, supra note 9, at 64. See also id. at 55 (" [W] e found local markets to consistently have commission modes at either six or 7 percent. These are the 'normal' modes for virtually all markets, regardless of how they might differ from one another, and nationwide a very high portion of property brokerage deals occurred at a commission rate of one or the other.
The degree of rate harmony we found plainly is irregular with a market characterized by the particular kind of energetic competitors 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 ago, things really have actually not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and released in 1983.
GENUINE ESTATE RES. 187, 187 (2001) (" A number of research studies have actually argued that the harmony of the commission rate throughout different properties and areas is an indicator of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. https://web.nashvillechamber.com/Real-Estate-Agents-and-Brokers/Wesley-Financial-Group,-LLC-21149?utm_source=GoogleSearch&gclid=Cj0KCQjw3s_4BRDPARIsAJsyoLMcbna5tFxdH9g--Y2UQliNiFGTrCXy6AAE6S9tZYYYuTspQQTsWakaAptfEALw_wcB read more REALTY FIN. & ECON.
some collusion between brokers through the [MLS] The main proof presented is the near-uniformity of commission rates in a given market. A common argument is that the effort required to sell a home is not a linear function of the prices and that if there is not collusion amongst brokers, there should be, at the minimum, variation in commission rates across home price varieties within a given market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any requirement, the real estate brokerage market is considerably less competitive than it must be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would surely mean that typical fees would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to stay as the modal cost."); John C.
8, 2005) (keeping in mind "a fairly extensive view that brokerage is not a competitive industry" based several understandings, including: (1) extreme commission rates that are "sticky down" even as technology reduces brokers' costs; (2) commission rates are higher in Have a peek here the United States than in lots of other developed 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 forbid banks from going into the property brokerage organization; and (5) NAR-imposed limitations on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Changes in the Airline Ticket Distribution Industry (July 2003) (going over how Web circulation reduced transaction costs in the sale of airline tickets), offered at http://www. gao.gov/ new - how to become a commercial real estate agent. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Defense Info Needed on Broker's Website (May 2000) (going over how Web brokerages charge far less commission per trade on securities), 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 Comment 10, at 3 (comment). 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.