One commenter, the owner of a discount brokerage franchise, reported that he has "not experienced any discrimination by agents in the proving or selling of our residential or commercial properties"$1333 Limiting the Impacts of Steering The Agencies have actually responded to claims of guiding in 2 unique ways, depending upon whether the steering was unilateral or involved an agreement among incumbent brokers.
The Agencies have recently examined accusations of boycotts by groups of brokers. how much does it cost to get a real estate license. In those investigations, nevertheless, the Agencies have actually not found proof enough to establish an arrangement jointly to guide clients away from or boycott a specific rival and have actually declined to bring an antitrust case. Where guiding behavior seems simply the result of a single firm's unilateral decision not to work together with a particular rival, the Agencies have not pursued enforcement actions.
Antitrust laws typically do not forbid unilateral choices by companies not to deal with a particular listing broker.334 If consumers have enough info about the quality of the service they have actually gotten, then companies that select to take part in steering will develop a bad track record for having done so and will subsequently lose future service.
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The marketplace is most likely to operate more effectively and offer greater benefits to customers when consumers have direct access to more information about those listings. The essential function played by more listing information being made straight readily available to consumers highlights the advantages of the antitrust actions versus cumulative action to decrease the schedule of such info.
The Workshop paid for real estate brokers, state regulators, and academics a chance to reveal their numerous views on competitors in the genuine estate brokerage industry - what does a real estate agent do. Using that information, as well as Firm know-how, the nearly 400 submissions filed in reaction to the Agencies' demand for public comment in connection with the Workshop, and other readily available information, this Report has undertaken a cautious examination of the property brokerage market.
In addition, customers likely would benefit significantly from additional knowledge about the variety of choices offered in brokerage services and costs. Based on the foregoing, the FTC and DOJ suggest the following to help keep competition and safeguard customers in the property brokerage market: The Agencies should continue to monitor the cooperative conduct of personal associations of realty brokers, and bring enforcement actions in suitable circumstances. DETAILS TECH. 213, 217 (2005) (competing that brokers provide worth in three areas info intermediation, process knowledge, and social capital in supporting closing requirements of purchasers and sellers and that even though an online MLS provides buyers higher access to appropriate information, a lot of purchasers will still need assistance in making sense of this info).
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See Hahn, Tr. at 29-30; AEI-Brookings Paper, supra note 3, at 13 n. 49; Nadel, i want to get out of my timeshare supra note 25, at 4-5. 127. See GAO REPORT, supra note 3, at 13-14, 21. This factor is discussed in detail in Chapter IV of this Report. 128. GAO found that a "essential element" in the growth of the Internet is the extent to which information about residential or commercial properties listed in an MLS is widely offered.
See likewise AEI- Brookings Paper, supra note 3, at 12 (access to the MLS is a "possible traffic jam" in the large favorable effect that the Internet could have for house buyers and sellers). 129. NAR 2006 STUDY, supra note 4, at 74 (69% of sellers contacted just one agent; 74% of sellers found their representative through either a referral or a prior relationship with the agent).
See, e. g., Paul Anglin & Richard Arnott, Are Brokers' Commission Rates on Home Sales Too High? A Conceptual Analysis, 27 REAL ESTATE ECONOMICS 719, 721 (1999) (" Another element in sustaining a collusive commission rate is that many sellers do not understand that the commission rate is negotiable."); 1983 FTC STAFF REPORT, supra note 9, at 66, 68-69 (reporting that as many as three-fifths of current sellers and three-fifths of current purchasers might have been uninformed of the negotiability of commission rates).
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Some commentators have actually argued that purchasers might have the misimpression that their brokers' services are totally free. See Nadel, supra note 25 at 23. 132. See, e. g., Lord, Public Remark 254, at 1 (" The competitors is intense the bulk of time that a representative has a listing visit.
And trust me, everybody asks."). 133. See Barry, Public Remark 19, at 57 (reporting that, due to the fact that the general public sources of home listings never show the commission offered by the listing brokers, purchasers are uninformed that their agents have actually screened out listings with hilton timeshare orlando lower commission offerings); WOODALL & BROBECK, supra note 14, at 5 (" home purchasers will not have access to this info about the splits, so they can not check to see whether their broker is steering them away from houses carrying lower splits"); White, supra note 47, at 5 n.
134. See supra notes 117-118 and accompanying text. 135. Another gap in consumers' knowledge albeit one that does not always impact competitors in the property brokerage industry might be that customers are not totally informed regarding what, if any, tasks they are owed by their broker. This can occur if the broker stops working to divulge such details to the client as lawfully needed.
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See, e. g., VA. CODE ANN. 54. 1-2131( E) (2007 ). Without full and timely disclosure a client might reveal sensitive info, such as the buyer's optimum deal or the seller's minimum rate, to a broker who is actually representing the celebration on the other side holiday inn club vacations timeshare cancellation of the deal. 136. See NAR 2006 STUDY, supra note 4, at 78 (75 percent of house sellers surveyed reported that the listing representative was compensated with a portion of the list prices of the home).
See Rutherford et al., supra note 16, at 629 (" Offered that the representative receives a small part of the deal price as commission, the agent's goal of making the most of the expected commission might diverge from the seller's objective of making the most of the market price. Furthermore, considered that the targeted asking price will impact the time the asset stays on the market, the agent's desired time on the market might diverge from that of the seller.").
See Levitt & Syverson, supra note 16, at 6 (keeping in mind that if a representative gets 1. 5 percent of the sales price and incurred weekly expenses of $200 to keep a home on the market, "the representative would be indifferent between selling your home today or waiting one more week and receiving a deal $13,333 higher with certainty.").