140. See infra Chapter III.C. 141. Although this area reports a range of stats that purport to measure "market share," this Report makes no effort to define an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT PROPERTY MARKET COMPETITORS: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within cosmopolitan areas. For instance, within the Washington, DC city, there is little or no competitors among buyers, sellers, and property 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., Elder Economist, 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 Market: 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 Comment 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY COMPANY INTRODUCTION 4 (Dec - how to become a real estate broker in florida. 2006), readily available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to take real estate photos. pdf. 151. NAR, Public Comment 208, at 6 (" In a couple of markets, some firms may have a larger than typical market share, however market shares are understood to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate 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 premises, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Bigger is Not Better: Brokerage and Time on the marketplace, 10 J.
Little Known Facts About What Is Avm In Real Estate.
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 Portion Brokerage Commissions and Genuine Estate 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 designs in the genuine estate brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively complimentary entry into the occupation and into the property brokerage service."). The capability of novice entrants to attract clients relative to more knowledgeable representatives was not gone over 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 (" A representative can acquire a broker's license, normally after having actually stayed in business for several years, and passing a broker's license test. The precise requirements vary by state.").
One author has described the service that brokers supply as not merely a completed match of purchaser and seller, but rather "a finished deal at some level of service supplied to the celebrations included." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competitors and the Housing Market, Home page 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers supply these services "provides the margin for nonprice competition among brokers." Id. 164. As talked about in Chapter I of this Report, refunds are a meaningful component of rate competition in between brokers in states that do not restrict rebates. Anti-rebate laws are gone over in more information 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 seven percent. These are the 'normal' modes for essentially all markets, despite how they might differ from one another, and nationwide an extremely high portion of realty brokerage transactions took place at a commission rate of one or the other.
The degree of rate harmony we discovered plainly is irregular with a market identified by the specific type of vigorous competitors common in lots of other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than 20 years ago, things really have actually not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was completed and published in 1983.
PROPERTY RES. 187, 187 (2001) (" A number of studies have argued that the uniformity of the commission rate throughout various residential or commercial properties and regions is a sign of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion in between brokers through the [MLS] The primary evidence presented is the near-uniformity of commission rates in a provided market. A typical argument is that the effort needed to offer a house is not a linear function of the sales rate and that if there is not collusion amongst get out of timeshare legally brokers, there need to be, at the minimum, variation in commission rates across home cost 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 property 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 definitely indicate that average charges 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) (noting "a relatively extensive view that brokerage is not a competitive industry" based numerous understandings, consisting of: (1) excessive commission rates that are "sticky downward" even as innovation lowers brokers' costs; (2) commission rates are greater in the United States than in lots of other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competitors; (4) NAR's successful lobbying of Congress to restrict banks from https://receive.news/09/09/2020/wesley-financial-group-diversifies-with-the-launch-of-wesley-mutual/ entering the property brokerage organization; and (5) NAR-imposed restrictions on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Modifications in the Airline Ticket Distribution Industry (July 2003) (discussing how Internet distribution decreased deal costs in the sale of airline tickets), offered at http://www. gao.gov/ brand-new - how to become a real estate agent in va. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Protection Information Needed on Broker's Website (May 2000) (talking about 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 Comment 10, at 3. 170. American Bankers Association, Public Comment 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 study evaluating commission rates in the United States and numerous other countries concluded that U.S.