140. See infra Chapter III.C. 141. Although this area reports a variety of stats 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 REAL ESTATE MARKET COMPETITORS: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within cities. For example, within the Washington, DC city, there is little or no competitors among purchasers, 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., Senior Citizen Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Property Industry, Real Estate Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], readily available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Remark 208, at 7 (comment). 149. Id. 150. REALOGY, REALOGY SERVICE OVERVIEW 4 (Dec - how to make money in real estate with no money. 2006), readily available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what are cc&rs in real estate. pdf. 151. NAR, Public Comment 208, at 6 (" In a couple of markets, some firms may have a bigger than typical 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 (sixth Cir. 1999). 153. Mid-America Real Estate 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, Bigger is Not Much Better: Brokerage and Time on the Market, 10 J.
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23, Learn more 27-28 (1995 ). The authors utilized a sample of 388 home sales in calendar year 1991 from the numerous listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Genuine Estate Market Performance," 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, however, this is not always the case with regard to the entry of brand-new company models in the realty brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly totally free entry into the profession and into the real estate brokerage company."). The ability of novice entrants to attract clients relative to more knowledgeable agents was not talked about at the Workshop and, also, is not resolved in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Comment 208, at 5 (" A representative can obtain a broker's license, generally after having stayed in business for several years, and passing a broker's license examination. The precise requirements vary by state.").
One author has actually described the service that brokers supply as not simply a finished match of buyer and seller, but rather "a finished transaction at some level of service offered to the celebrations involved." Geoffrey K. Turnbull, Property Brokers, Nonprice Competition and the Housing Market, 24 REAL ESTATE ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers provide these services "offers the margin for nonprice competition among brokers." https://www.businesswire.com/news/home/20190911005618/en/Wesley-Financial-Group-Continues-Record-Breaking-Pace-Timeshare Id. 164. As gone over in Chapter I of this Report, rebates are a meaningful part of rate competitors between brokers in states that do not prohibit refunds. Anti-rebate laws are talked about in more detail in Chapter IV of https://www.globalbankingandfinance.com/category/news/wesley-financial-group-diversifies-with-launch-of-wesley-mutual/ this Report.
1983 FTC STAFF REPORT, supra note 9, at 64. See also id. at 55 (" [W] e found regional markets to consistently have commission modes at either six or seven percent. These are the 'regular' modes for essentially all markets, regardless of how they may vary from one another, and nationwide an extremely high portion of realty brokerage transactions occurred at a commission rate of one or the other.
The degree of rate harmony we found plainly is inconsistent with a market defined by the specific kind of vigorous competition common in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than 20 years ago, things really have not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and released in 1983.
PROPERTY RES. 187, 187 (2001) (" A variety of studies have argued that the uniformity of the commission rate across various homes and areas is an indicator of collusive habits."); 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 evidence provided is the near-uniformity of commission rates in a provided market. A common argument is that the effort needed to offer a house is not a direct function of the prices and that if there is not collusion among brokers, there should be, at least, variation in commission rates throughout home price ranges within a provided market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any requirement, the realty 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 result would definitely suggest that typical costs would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to remain as the modal fee."); John C.
8, 2005) (keeping in mind "a relatively widespread view that brokerage is not a competitive market" based several perceptions, including: (1) excessive commission rates that are "sticky down" even as innovation reduces brokers' costs; (2) commission rates are greater in the United States than in numerous other industrialized 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 forbid banks from going into the property brokerage service; and (5) NAR-imposed restrictions on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Modifications in the Airline Ticket Distribution Industry (July 2003) (going over how Web distribution lowered transaction expenses in the sale of airline tickets), readily available at http://www. gao.gov/ brand-new - how to become a commercial real estate agent. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Details Needed on Broker's Web Sites (May 2000) (going over how Web 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 Remark 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 study analyzing commission rates in the United States and several other countries concluded that U.S.