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[Norsworthy Mantooth]

The present law keeps it under control." 247 Another broker anticipated:" This [lifting the refund restriction] would develop Extra resources into a bidding war, reduce our profits and lower our 'so-called.

' profession." 248 Another broker observed:" If temptations were permitted, they might result in competitive habits, which would make us look less than professional in the eyes of the public. "249 DOJ likewise examined rebate restrictions by the South Dakota Realty Commission, the West Virginia Realty Commission, and the Tennessee Realty Commission. They ought to likewise prevent enacting such laws, guidelines, and guidelines in the future. The Agencies and market regulators must promote consumer understanding of marketplace options. Some consumers might not be mindful of the variety of alternatives available to them when working with a real estate broker, consisting of the types of service designs offered and the negotiability of costs, for both home purchasers and sellers, and/or might not understand the responsibilities owed by their broker.

The Agencies and industry regulators must assess the feasibility of an empirical study of the genuine estate brokerage market. Transaction-level information on commission rates and charges are not openly offered, but broad national aggregate information suggest that commission rates and costs move read more in tandem with real estate costs - how to become a real estate agent in pa. Just as the 1983 FTC research study supplied valuable details about how real estate brokers competed in the late 1970s and early 1980s, a new study analyzing how transaction-level commission rates and costs vary based on such aspects as market conditions, real estate costs, and policy would supply a better understanding of the existing state of competitors in the realty brokerage market.

In 2005 property broker commissions went beyond $60 billion. See The Changing Realty Market: Hearing Before your home Financial Solutions Subcommittee on Real Estate and Community Chance, 109th Cong. 1 (2006) [hereinafter Hearing] (testament of David G. Wood, Director, Financial Markets and Neighborhood Financial Investment, Government Accounting Office), offered at http://financialservices.

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pdf. 2. In between 1998 and 2005, the genuine average genuine estate broker commission per deal grew by 25. 5% to $11,549. See Table 1 in Chapter III of this Report. 3. See Robert W. Hahn et al., Paying Less for Real Estate Brokerage: What Will Make It Take Place? 5 (American Business Institute-Brookings Joint Center for Regulatory Researches, Working Paper 05-11, 2005) [hereinafter AEI-Brookings Paper]; GAO, REAL ESTATE BROKERAGE: ASPECTS THAT MAY AFFECT COST COMPETITORS (GAO-05-947) 15 n.

4. According to one study, 80 percent of house purchasers used the Web throughout their house search in 2006, and 24 percent of recent home buyers first located the home they bought on the Web. NAR, 2006 NATIONAL ASSOCIATION OF REALTORS PROFILE OF HOME BUYERS AND SELLERS 34, 38 (2006) [hereinafter NAR 2006 SURVEY] (covering 12-month period ending June 2006).

Id. at 38. 5. Id. at 34 (Internet pointed out by 80% of home buyer participants, while yard indication pointed out by 63%). 6 - how do real estate agents get paid. The program, records, and other information connecting to the Workshop are offered at the Agencies' sites at http://www. usdoj.gov/ atr/public/workshops/ reworkshop. htm and http://www. ftc.gov/ bc/realestate/workshop/ index. htm. 7. The following individuals affirmed at the Workshop: Cathy Whatley, genuine estate broker and Past President of NAR; Robert Hahn, economic expert and Executive Director, American Business Institute-Brookings Joint Center for Regulatory Researches; Aaron Farmer, Owner of Texas Discount Rate Realty; Thomas Kunz, President and President of Century 21 Realty LLC; Colby Sambrotto, Chief Operating Officer of ForSaleByOwner.

In addition, the Agencies received nearly 400 submissions in response to their demand for public comment in connection with the Workshop. 8. how to invest in real estate with little money. This Report, nevertheless, does not draw on any non-public info gathered throughout examinations conducted by the FTC or DOJ or gotten through litigation brought by the Agencies - how to become a real estate agent in illinois. The FTC and DOJ do not always back, support, validate, or concur with the comments, opinions or declarations of Workshop participants or of others who have actually published short articles concerning the market that are consisted of in this Report.

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See FEDERAL TRADE COMMISSION, THE RESIDENTIAL REAL ESTATE AND BROKERAGE MARKET: LOS ANGELES REGIONAL WORKPLACE PERSONNEL REPORT VOLUMES I AND II AND THE BUTTERS REPORT 9 (1983) [hereinafter 1983 FTC PERSONNEL REPORT], available at http://www. ftc.gov/ bc/realestate/workshop/ index. htm. 0. Kunz, Tr. at 103. Throughout this Report citations to "Tr." refer to the transcript of the Workshop.

The complete records is offered at http://www. ftc.gov/ opp/workshops/comprealestate/ 051209transcript. pdf and http://www. usdoj.gov/ atr/public/workshops/ rewagenda. htm. 11. NAR 2006 STUDY, supra note 4, at 67, 68. 12. NAR, House Purchaser & Seller Survey Reveals Increasing Use of Web, Dependence on Agents (Jan. 17, 2006), http://www. realtor.org/press_room/news_releases/2006/hmbuyersellersurvey06. html. 13. NAR 2006 STUDY, supra note 4, at 34.

See PATRICK WOODALL & STEPHEN BROBECK, CONSUMER FEDERATION OF AMERICA, STATE REAL ESTATE REGULATION: MARKET DOMINANCE AND ITS CONSUMER COSTS 3 (July 2006), offered at http://www. consumerfed.org/pdfs/CFA_Real_Estate_Commissioner_Report. pdf. 15. We describe brokers and agents jointly as "brokers" throughout this Report, except when a distinction in between the 2 is essential to the meaning or when pricing quote a panelist or author.