140. See infra Chapter III.C. 141. Although this section reports a variety of stats that profess to measure "market share," this Report makes no attempt to specify an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL REAL ESTATE MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting presence of "micro- markets" within urbane areas. For instance, within the Washington, DC city, there is little or no competitors amongst buyers, sellers, and property 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 Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Realty Market, Real Estate Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], offered 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 become a commercial real estate agent. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how much does it cost to get a real estate license. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some companies might have a larger than typical market share, however market shares are known to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate One, Inc., 173 F. 3d Have a peek at this website 995, 1003 (sixth 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 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.
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23, 27-28 (1995 ). The authors utilized a sample of 388 home sales in calendar year 1991 from the multiple 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 PERSONNEL REPORT, supra note 9, at 102. As explained infra, however, this is not necessarily 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 organization."). The ability of novice entrants to draw in customers relative to more experienced representatives was not talked about at the Workshop and, likewise, is not addressed 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 (" An agent can obtain a broker's license, usually after having stayed in business for several years, and passing a broker's license examination. The precise requirements vary by state.").
One author has explained the service that brokers supply as not simply a finished match of buyer and seller, however rather "a finished transaction at some level of service supplied to the celebrations included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers supply these services "offers the margin for nonprice competition among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a meaningful part of price competitors in between brokers in states that do not forbid rebates. Anti-rebate laws are talked about 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 discovered regional markets to regularly have commission modes at either six or seven percent. These are the 'normal' modes for practically all markets, regardless of how they may differ from one another, and nationwide a really high percentage of real estate brokerage deals occurred at a commission rate of one or the other.
The degree of rate harmony we found clearly is inconsistent with a market characterized by the specific kind of vigorous competitors typical 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 ago, things really have actually not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was finished and released in 1983.
REALTY RES. 187, 187 (2001) (" A number of research studies have argued that the uniformity of the commission rate across different residential or commercial properties and areas is an indicator 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 evidence provided is the near-uniformity of commission rates in an offered market. A typical argument is that the effort needed to sell a home is not a direct function of the sales price and that if there is not collusion amongst brokers, there need to be, at the extremely least, variation in commission rates throughout house price varieties within an offered market.").
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See, e. g., American Extra resources Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any requirement, the realty 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 suggest that average charges would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to stay 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, consisting of: (1) extreme commission rates that are "sticky down" even as technology minimizes brokers' costs; (2) commission rates are higher in the United States than in numerous other industrialized nations; (3) get out of timeshare lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competition; (4) NAR's successful lobbying of Congress to forbid banks from going into the property brokerage service; and (5) NAR-imposed limitations on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Changes in the Airline Company Ticket Distribution Industry (July 2003) (discussing how Web distribution reduced deal costs in the sale of airline company tickets), available 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 Investor Protection Information Needed on Broker's Web Websites (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 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 a number of other countries concluded that U.S.