140. See infra Chapter III.C. 141. Although this area reports a range of statistics that purport to measure "market share," this Report makes no attempt to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REALTY MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within cities. For instance, within the Washington, DC urban area, there is little or no competition amongst buyers, sellers, and realty agents throughout 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 Property Industry, Realty 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 (comment). 149. Id. 150. REALOGY, REALOGY ORGANIZATION SUMMARY 4 (Dec - how long does it take to get real estate license. 2006), available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to become a real estate developer. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some firms may have a larger than normal market share, however market shares are known 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 Real Estate 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 premises, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Larger is Not Better: Brokerage and Time on the Market, 10 J.
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23, 27-28 (1995 ). The authors used 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 Realty Market Performance," 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, however, this is not always the case with respect to the entry of new service designs in the realty brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively complimentary entry into the profession and into the realty brokerage company."). The ability of beginner entrants to draw in customers relative to more skilled representatives was not discussed 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 Comment 92, at 1. 161. NAR, Public Remark 208, at 5 (" A representative can get a broker's license, normally after having been in organization for a number of years, and passing a broker's license test. The exact requirements vary by state.").
One author has actually described the service that brokers offer as not simply a completed match of buyer and seller, but rather "a completed transaction at some level of service provided to the parties included." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services Click here! "supplies the margin for nonprice competitors amongst brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a significant element of cost competitors between brokers in states that do not prohibit refunds. Anti-rebate laws are talked about in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e found local markets to consistently have commission modes at either 6 or 7 percent. These are the 'normal' modes for essentially all markets, regardless of how they might vary from one another, and nationwide an extremely high percentage of genuine estate brokerage transactions took place at a commission rate of one or the other.
The degree of rate uniformity we found plainly is inconsistent with a market identified by the specific type of energetic competitors typical https://www.ripoffreport.com/report/s/wesley-financial-group-llc-trusted-business-ripoff-report-verified-896644 in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than twenty years earlier, things really have actually not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was completed 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 evidence presented is the near-uniformity of commission rates in an offered market. A common argument is that the effort needed to sell a home is not a direct function of the sales price which if there is not collusion amongst brokers, there should be, at the extremely least, variation in commission rates throughout house price 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 considerably less competitive than it needs to be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would undoubtedly indicate that average costs 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 fairly widespread view that brokerage is not a competitive industry" based several The original source understandings, consisting of: (1) extreme commission rates that are "sticky downward" even as innovation lowers brokers' expenses; (2) commission rates are higher in the United States than in many other developed 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 forbid banks from entering the genuine estate brokerage business; and (5) NAR-imposed restrictions on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Changes in the Airline Ticket Circulation Market (July 2003) (talking about how Internet distribution decreased transaction expenses in the sale of airline tickets), readily available at http://www. gao.gov/ brand-new - how to become real estate agent. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Protection Details Needed on Broker's Web Websites (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 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 several other countries concluded that U.S.