The authors did not determine the source of the U.S. commission information. See NAR, Public Remark 208, at 15-16; Delcoure & Miller, supra, at 15. 173. Approximately half of the public comments submitted to the Agencies in action to their ask for public remarks were some variation of a type letter that NAR made up, posted on its site, and motivated its 1.
This letter praised the competitive nature of the real estate market. Commenters utilizing this kind highlighted local competition in between specific agents as an impressive example of extensive competition to which the rest of the economy must aim - how much does real estate agents make. In addition, they declared that the tens of countless brokerages, more than two million certified property experts, and different service models across the nation offer customers with a fantastic offer of option.
realtor.org/law_and_policy/mls/ild/regulator_letters. html) for more details on the association's guidelines and recommended material. 174. NAR, Public Comment 208, at 1 (remark). 175. Id. at 2. 176. Blann, Public Comment 250, at 1. However see NAR 2006 STUDY, supra note 4, at 74 (69% of sellers gotten in touch with just one agent; 74% of sellers discovered their agent through either a referral or a prior relationship with the representative).
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Reppert, Public Remark 294, at 1. See also Tradii, Public Comment 340, at 1; Wharton, Public Remark 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 3% to about 2.
179. Paulsen, Public Comment 364, at 1. A number of panelists and commenters mentioned Genuine Patterns estimates of commission rates. See, e. g., Kunz, Tr. at 81-82; Lewis, Tr. at 172; NAR, Public Remark 208, at 12 (comment). 180. Lord, Public Comment 254, at 1. 181. Id. at 1. 182. Dwyer, Public Remark 55, at 1.
There are a range of options readily available to purchasers and sellers from full service agents to really restricted service representatives with a variety of fee structures."); Big, Public Remark 241, at 1 (" our average commission per transaction side has actually dropped 13% this year compared to last year as a result of competitors from discount rate brokerage organization models operating in our market").
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GAO REPORT, supra note 3, at 12. 184. As talked about in Chapter I of this Report, the commission "rate" is the percentage of the house sales price that the broker keeps as a commission, and commission "costs" are the overall dollar amount paid by customers genuine estate brokerage services.
185. Weicher, supra note 167, at 121. what are cc&rs in real estate. 186. NAR a rational source of commission information, given its size and access to MLS data through its local associations does not study or report commission rates. A NAR economist explained at the workshop that any average commission rate reported by a popular entity such as NAR might be used by market individuals as a centerpiece for collusion on commission rates.
at 225-26. See also NAR, Public Comment 208, at 12 (remark) (" [NAR] does not perform research study on commission rates out of issues that the research study outcomes have the result of setting a 'centerpiece' for specialists to set their commissions."). 187. Weicher, supra note 167, at 124. Weicher's calculations use average home prices, not average home list prices.
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Id. 189. See Hearing, supra note 1, at 5 (testimony of David G. Wood), available at http://financialservices. house.gov/ media/pdf/072506dgw. timeshare warrior film pdf. 190. Id. at 6. 191. See Realogy Corporation 10-K for fiscal year ending Dec. 31, 2006, offered at http://www. sec.gov/ Archives/edgar/data/ 1355001/000095012307003335/e31090e10vk. htm #tocpage. 192. A thorough evaluation of the empirical research carried out in the property brokerage industry is beyond the scope of this Report.
Turnbull, Trends in Real Estate Research, 1988-2001: What's Hot and What's Not, 29 JOURNAL OF REALTY FINANCE AND ECONOMICS 47 (2004 ); John D. Benjamin, G. Donald Jud & G. Stacy Sirmans, What Do We Know About Realty Brokerage?, 20 JOURNAL OF PROPERTY RESEARCH 5 (2000 ). 193. 1983 FTC PERSONNEL 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. See Michael Carney, Expenses and Pricing of Home Brokerage Services, 10 JOURNAL OF THE AMERICAN REAL ESTATE 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 cost of the home lowers http://titusgxtd824.bearsfanteamshop.com/getting-the-what-is-a-variance-in-real-estate-to-work the commission rate by about 0. 5 percentage points"). The typical list prices of an existing house in 1980 was $72,800. See U.S. Department of Housing and Urban Advancement, U.S.
2006) [hereinafter "HUD REPORT"], offered at http://www. huduser.org/periodicals/ushmc/fall06/USHMC_Q306. pdf. At that rate, the research study's statistical outcomes anticipate a corresponding commission rate of 6. 25%, resulting in a commission cost of $4,550. A home offering for $100,000 more, or $172,000, would pay a commission rate of 5. 73%, for a commission cost of $9,901.
Carney, supra note 198, at 339 (excluding five areas with insufficient observations for new homes, in 59 percent of the remaining market areas the mean commission rate paid was statistically considerably higher for existing homes than for brand-new houses). 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 equations evaluated. See id. at 83. Nevertheless, Weicher notes that the magnitude of the prices effect seems small. See Weicher, supra note 167, at 121 (" Goolsby and Childs discover that the commission rate decreases about 0.
11 portion points for each $10,000 boost in house cost, e. g., from 5. 90 percent to 5. 84 or 5. 79 percent."). 208. Goolsby & Childs, supra note 205, at 85. Because the authors only observed the cooperative commission rate, they note that their conclusion rests on the assumption that the cooperative split is a set share of the overall listing commission.
See id. at 81 n. 1. 209. See C.F. Sirmans & Geoffrey K. Turnbull, Brokerage Pricing under Competition, 41 JOURNAL OF URBAN ECONOMICS 102 (1997 ). This research study apparently includes the information and appropriate findings of an earlier study carried out 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. pros and cons of timeshare The authors performed regressions examining how the contract commission rate was affected by different market conditions and housing variables. As the authors explain, the commission rate captured in the sample is "the agreement rate and for that reason does not show any change or modifications that may be renegotiated in between your house seller and the representative at the time of sale." Id.
213. While it is not possible to measure the relative inflexibility based upon info reported by the authors, additional details can be used to calculate a rough approximation. Weicher, supra note 166, at 121, reports that Sirmans and Turnbull computed an average contract commission rate of 5. 8% in Baton Rouge over the duration 1985-1987.