140. See infra Chapter III.C. 141. Although this section reports a variety of data that claim 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 PROPERTY MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting existence of "micro- markets" within urbane locations. For example, within the Washington, DC city location, there is little or no competitors amongst purchasers, sellers, and real estate 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 Economist, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Realty Market, Property 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 SERVICE SUMMARY 4 (Dec - what is a cma in real estate. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how long does it take to get a real estate license. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms may have a bigger than normal 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 (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 Market, 10 J.
Some Known Questions About How To Get Leads In Real Estate.
23, 27-28 (1995 ). The authors used a sample of 388 house sales in calendar 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 Efficiency," 17 JOURNAL OF THE AMERICAN REALTY 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 necessarily the case with regard to the entry of brand-new company models in the real estate brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly free sell wyndham timeshare entry into the occupation and into the realty brokerage company."). The capability of novice entrants to draw in clients relative to more knowledgeable representatives was not discussed 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 Remark 92, at 1. 161. NAR, Public Remark 208, at 5 (" A representative can obtain a broker's license, usually after having stayed in business for a number of years, and passing a broker's license test. The exact requirements differ by state.").
One author has actually explained the service that brokers check here supply as not simply a completed match of buyer and seller, however rather "a finished deal at some level of service provided to the celebrations involved." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competitors and the Real Estate Market, 24 REAL ESTATE ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers supply these services "supplies the margin for nonprice competitors among brokers." Id. 164. As discussed in Chapter I of this Report, refunds are a meaningful part of price competitors between brokers in states that do not forbid rebates. Anti-rebate laws are talked about 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 discovered local markets to regularly have commission modes at either six or 7 percent. These are the 'normal' modes for virtually all markets, regardless of how they may differ from one another, and nationwide a really high percentage of realty brokerage transactions occurred at a commission rate of one or the other.
The degree of rate harmony we discovered clearly is inconsistent with a market defined by the specific type of vigorous competition common in numerous 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 actually have not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and published in 1983.
REALTY RES. 187, 187 (2001) (" A variety of research studies have argued that the uniformity of the commission rate throughout various residential or commercial properties and areas is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. REAL ESTATE FIN. & ECON.
some collusion in between brokers through the [MLS] The main proof provided is the near-uniformity of commission rates in an offered market. A common argument is that the effort required to sell a house is not a direct function of the sales rate and that if there is not collusion among brokers, there must be, at the minimum, variation in commission rates throughout home rate ranges within a given market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any requirement, the genuine estate brokerage market is substantially less competitive than it should be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would undoubtedly indicate that typical charges would be lower than they are today which 'the 6% (or 7%) commission' would be not likely to remain as the modal charge."); John C.
8, 2005) (keeping in mind "a relatively extensive view that brokerage is not a competitive industry" based numerous understandings, including: (1) excessive commission rates that are "sticky down" even as innovation lowers brokers' costs; (2) commission rates are higher in the United States than in lots of other industrialized countries; (3) lobbying efforts by NAR https://picante.today/business-wire/2019/10/08/95065/wesley-financial-group-relieves-375-consumers-of-more-than-6-7-million-in-timeshare-debt-in-september/ and state Realtor associations in favor of state laws restricting competition; (4) NAR's effective lobbying of Congress to forbid banks from entering the realty brokerage service; and (5) NAR-imposed constraints on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Modifications in the Airline Company Ticket Distribution Industry (July 2003) (talking about how Internet distribution reduced deal expenses in the sale of airline tickets), offered at http://www. gao.gov/ brand-new - how to choose a real estate agent for selling. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Protection Information Needed on Broker's Website (May 2000) (talking 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 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study examining commission rates in the United States and numerous other nations concluded that U.S.