140. See infra Chapter III.C. 141. Although this area reports a range of statistics that claim to measure "market share," this Report makes no attempt to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REAL ESTATE MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting presence of "micro- markets" within cities. For instance, within the Washington, DC metropolitan location, there is little or no competitors amongst buyers, sellers, and realty 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., Elder Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Realty Industry, Real Estate Brokerage Market: 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 Remark 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY COMPANY INTRODUCTION 4 (Dec - how to be a real estate investor. 2006), available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what is an encumbrance in real estate. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some firms might have a bigger 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 premises, 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.
How To Become Real Estate Agent Fundamentals Explained
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 Portion 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 described infra, nevertheless, this is not always the case with respect to the entry of brand-new organization models in the realty brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably free entry into the occupation and into the realty brokerage business."). The capability of beginner entrants to attract customers relative to more experienced agents was not discussed at the Workshop and, similarly, is not dealt with 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 Comment 208, at 5 (" An agent can obtain a broker's license, normally after having actually stayed in business for several years, and passing a broker's license test. The exact requirements differ by state.").
One author has explained the service that brokers provide as not merely a finished match of buyer and seller, however rather "a completed transaction at some level of service supplied to the celebrations included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Housing Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
Facts About How To Find Real Estate Deals Uncovered
Id. The extent to which brokers supply these services "offers the margin for nonprice competitors among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a significant part of price competition between brokers in states that do not prohibit refunds. Anti-rebate laws are discussed in more information in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See also id. at 55 (" [W] e found regional Homepage markets to regularly have commission modes at either 6 or seven percent. These are the 'typical' modes for practically all markets, no matter how they might vary from one another, and nationwide an extremely high percentage of realty brokerage transactions happened at a commission rate of one or tahiti village timeshare the other.
The degree of rate uniformity we found clearly is irregular with a market defined by the specific kind of vigorous competition common in numerous other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than 20 years back, things truly have not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and released in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A number of studies have argued that the uniformity of the commission rate throughout different homes and areas is an Check over here indicator of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. REALTY FIN. & ECON.
some collusion in between brokers through the [MLS] The primary evidence 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 linear function of the list prices which if there is not collusion among brokers, there ought to be, at the minimum, variation in commission rates throughout home rate varieties within a given market.").
See This Report on What Is Mls In Real Estate
See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any requirement, the property brokerage market is significantly less competitive than it should be and commissions are synthetically 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 not likely to stay as the modal cost."); John C.
8, 2005) (keeping in mind "a relatively prevalent view that brokerage is not a competitive market" based numerous understandings, including: (1) extreme commission rates that are "sticky down" 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 prohibit banks from going into the property brokerage company; and (5) NAR-imposed constraints on discount and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Changes in the Airline Ticket Circulation Market (July 2003) (discussing how Internet circulation decreased transaction costs in the sale of airline tickets), offered at http://www. gao.gov/ new - how to invest in real estate with little money. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Protection Details Needed on Broker's Website (May 2000) (going over how Internet 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 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 numerous other nations concluded that U.S.