The authors did not identify the source of the U.S. commission information. See NAR, Public Remark 208, at 15-16; Delcoure & Miller, supra, at 15. 173. Around half of the general public remarks submitted to the Agencies in response to their demand for public remarks were some variation of a type letter that NAR made up, posted on its website, and motivated its 1.
This letter praised the competitive nature of the property industry. Commenters utilizing this kind highlighted local competitors in between individual agents as an exceptional example of extensive competition to which the rest of the economy ought to strive - how to become a real estate broker in california. In addition, they declared that the 10s of countless brokerages, more than 2 million certified property professionals, and numerous organization designs across the nation offer consumers with a good deal of option.
realtor.org/law_and_policy/mls/ild/regulator_letters. html) for more information on the association's directions and suggested material. 174. NAR, Public Comment 208, at 1 (comment). 175. Id. at 2. 176. Blann, Public Remark 250, at 1. However see NAR 2006 STUDY, supra note 4, at 74 (69% of sellers gotten in touch with only one agent; 74% of sellers discovered their representative through either a recommendation or a previous relationship with the agent).
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Reppert, Public Comment 294, at 1. See also Tradii, Public Remark 340, at 1; Wharton, Public Comment 179, at 1. 178. See, e. g., Earman, Public Remark 73, at 1-2 (average commission is "well under 6%"); Giorgianni, Public Comment 200, at 1 (" My typical commission has actually dropped over the last 10 years from give back timeshare reviews 3% to about 2.
179. Paulsen, Public Comment 364, at 1. A number of panelists and commenters pointed out Genuine Patterns price quotes of commission rates. See, e. g., Kunz, Tr. at 81-82; Lewis, Tr. at 172; NAR, Public Remark 208, at 12 (remark). 180. Lord, Public Remark 254, at 1. 181. Id. at 1. 182. Dwyer, Public Comment 55, at 1.
There are a variety of options available to purchasers and sellers from complete service agents to extremely limited service agents with a large variety of charge structures."); Big, Public Remark 241, at 1 (" our typical commission per deal side has dropped 13% this year compared to in 2015 as a result of competitors from discount rate brokerage business designs operating in our market").
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GAO REPORT, supra note 3, at 12. 184. As gone over in Chapter I of this Report, the commission "rate" is the portion of the house list prices that the broker maintains as a commission, and commission "costs" get out of timeshare attorney are the overall dollar amount paid by customers for genuine estate brokerage services.
185. Weicher, supra note 167, at 121. how to get started in real estate. 186. NAR a sensible source of commission data, provided its size and access to MLS data through its regional associations does not study or report commission rates. A NAR economist explained at the workshop that any typical commission rate reported by a prominent entity such as NAR could be used by market individuals as a focal point for collusion on commission rates.
at 225-26. See also NAR, Public Remark 208, at 12 (comment) (" [NAR] does not carry out research on commission rates out of issues that the research results have the effect of setting a 'focal point' for practitioners to set their commissions."). 187. Weicher, supra note 167, at 124. Weicher's computations use average home list prices, not average house prices.
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Id. 189. See Hearing, supra note 1, at 5 (statement of David G. Wood), offered at http://financialservices. house.gov/ media/pdf/072506dgw. pdf. 190. Id. at 6. 191. See Realogy Corporation 10-K for financial year ending Dec. 31, 2006, offered at http://www. sec.gov/ Archives/edgar/data/ 1355001/000095012307003335/e31090e10vk. htm #tocpage. 192. A detailed evaluation of the empirical research study carried out in the realty brokerage market is beyond the scope of this Report.
Turnbull, Trends in Realty Research, 1988-2001: What's Hot and What's Not, 29 JOURNAL OF PROPERTY FINANCE AND ECONOMICS 47 (2004 ); John D. Benjamin, G. Donald Jud & G. Stacy Sirmans, What Do We Know About Realty Brokerage?, 20 JOURNAL OF REAL ESTATE RESEARCH 5 (2000 ). 193. 1983 FTC STAFF REPORT, supra note 9, at 45.
Id. 195. Id. at 46 (49. 6% of sample paid 6%, while 27. 9% paid 7%). 196. Id. at 48. 197. Id. at 52. 198. timeshare attorney near me See Michael Carney, Expenses and Pricing of House Brokerage Providers, 10 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 331 (1982 ). 199. Id.
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200. Id. at 336. 201. Id. at 348 (" [O] n average, a $100,000 increase in the rate of the home lowers the commission rate by about 0. 5 percentage points"). The typical prices of an existing house in 1980 was $72,800. See U.S. Department of Real Estate and Urban Development, U.S.
2006) [hereinafter "HUD REPORT"], offered at http://www. huduser.org/periodicals/ushmc/fall06/USHMC_Q306. pdf. At that cost, the research study's statistical outcomes anticipate a corresponding commission rate of 6. 25%, resulting in a commission fee of $4,550. A house selling for $100,000 more, or $172,000, would pay a commission rate of 5. 73%, for a commission fee of $9,901.
Carney, supra note 198, at 339 (leaving out 5 areas with insufficient observations for new homes, in 59 percent of the remaining market locations the mean commission rate paid was statistically considerably higher for existing houses than for brand-new homes). 203. Id. 204. Id. at 248. 205. See William C. Goolsby & Barbara J.
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206. Id. at 84. 207. This finding was substantial at the one percent level for each of the formulas checked. See id. at 83. However, Weicher notes that the magnitude of the prices impact seems small. See Weicher, supra note 167, at 121 (" Goolsby and Childs find that the commission rate declines about 0.
11 percentage points for each $10,000 boost in house price, e. g., from 5. 90 percent to 5. 84 or 5. 79 percent."). 208. Goolsby & Childs, supra note 205, at 85. Given that the authors only observed the cooperative commission rate, they keep in mind that their conclusion rests on the presumption that the cooperative split is a fixed share of the overall listing commission.
See id. at 81 n. 1. 209. See C.F. Sirmans & Geoffrey K. Turnbull, Brokerage Rates under Competitors, 41 JOURNAL OF URBAN ECONOMICS 102 (1997 ). This study obviously incorporates the data and pertinent findings of an earlier study conducted by the authors. See C.F. Sirmans, Geoffrey K. Turnbull & John D.
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210. Sirmans & Turnbull, supra note 209, at 111. 211. Id. at 113-115. 212. Id. at 113-14. The authors carried out regressions analyzing how the agreement commission rate was affected by various market conditions and housing variables. As the authors describe, the commission rate recorded in the sample is "the contract rate and for that reason does not show any change or modifications that might be renegotiated in between the home seller and the representative at the time of sale." Id.
213. While it is not possible to quantify the relative inflexibility based on information reported by the authors, supplemental info can be utilized to calculate a rough approximation. Weicher, supra note 166, at 121, reports that Sirmans and Turnbull computed a typical contract commission rate of 5. 8% in Baton Rouge over the period 1985-1987.