140. See infra Chapter III.C. 141. Although this section reports a range of data that purport to measure "market share," this Report makes no effort to specify 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 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within cities. For example, within the Washington, DC city, there is little or no competition among purchasers, 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., Senior Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Realty Market, Property Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], offered 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 OVERVIEW 4 (Dec - what is an encumbrance in real estate. 2006), offered at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what is noi in real estate. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some firms might have a larger than usual market share, however market shares are understood to alter 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 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, 27-28 (1995 ). The authors utilized a sample of 388 house sales in calendar year 1991 from the numerous listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Real Estate Market Performance," 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 described infra, however, this is not always the case with regard to the entry of brand-new organization designs in the real estate brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably totally free entry into the occupation and into the property brokerage organization."). The ability of amateur entrants to bring in clients relative to more experienced representatives was not discussed at the Workshop and, similarly, is not dealt with in this Report. 158. Yun, Tr.
159. Yun timeshare rentals Presentation, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Remark 208, at 5 (" An agent can get a broker's license, normally after having been in business for several years, and passing a broker's license test. The exact requirements differ by state.").
One author has explained the service that brokers provide as not simply a completed match of buyer and seller, however rather "a completed transaction at some level of service provided to the celebrations involved." Geoffrey K. Turnbull, Property Brokers, Nonprice Competition and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers provide these services "provides the margin for nonprice competitors among brokers." Id. 164. As talked about in Chapter I of this Report, refunds are a meaningful part of cost competitors in between brokers in states that do not prohibit rebates. Anti-rebate laws are gone over 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 consistently have commission modes at either 6 or 7 percent. These are the 'normal' modes for practically all markets, despite how they may vary from one another, and nationwide a really high portion of property brokerage deals took place at a commission rate of one or the other.
The degree of rate harmony we discovered plainly is inconsistent with a market characterized by the particular kind of vigorous competitors common in lots of 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 truly have actually not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was finished and released in 1983.
PROPERTY RES. 187, 187 (2001) (" A variety of studies have actually argued that the harmony of the commission rate across different properties and areas is a sign of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. REALTY 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 which if there is not collusion amongst brokers, there ought to be, at the very least, variation in commission rates throughout house cost varieties within an offered market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] https://omaha.com/business/consumer/wesley-financial-group-diversifies-with-launch-of-wesley-mutual/article_1cf167bd-44c0-535b-ab57-13075882968f.html y any requirement, the property brokerage market is considerably less competitive than it should be and commissions https://www.benzinga.com/pressreleases/20/02/g15395369/franklin-tenn-based-wesley-financial-group-recognized-as-2020-best-places-to-work-in-u-s are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would undoubtedly mean that average fees would be lower than they are today and that 'the 6% (or 7%) commission' would be not likely to stay as the modal fee."); John C.
8, 2005) (keeping in mind "a fairly widespread view that brokerage is not a competitive industry" based several perceptions, including: (1) extreme commission rates that are "sticky downward" even as innovation reduces brokers' expenses; (2) commission rates are higher in the United States than in numerous other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competitors; (4) NAR's effective lobbying of Congress to forbid banks from entering the property brokerage business; and (5) NAR-imposed limitations on discount 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) (talking about how Web circulation decreased transaction expenses in the sale of airline company tickets), readily available at http://www. gao.gov/ brand-new - how to invest in real estate with no money. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Security Information Needed on Broker's Web Sites (May 2000) (going over how Web 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 Remark 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 research study evaluating commission rates in the United States and several other nations concluded that U.S.