The authors did not determine the source of the http://juliusxecz561.jigsy.com/entries/general/fascination-about-how-to-create-wealth-investing-in-real-estate U.S. commission information. See NAR, Public Comment 208, at 15-16; Delcoure & Miller, supra, at 15. 173. Approximately half of the general public remarks sent to the Agencies in action to their ask for public remarks were some variation of a type letter that NAR composed, posted on its website, and motivated its 1.
This letter applauded the competitive nature of the genuine estate industry. Commenters utilizing this kind highlighted regional competition between private representatives as an impressive example of extensive competition to which the remainder of the economy ought to aim - what is reo in real estate. In addition, they claimed that the 10s of countless brokerages, more than two million certified realty specialists, and numerous company designs across the country offer customers with a good deal of option.
realtor.org/law_and_policy/mls/ild/regulator_letters. html) for more details on the association's guidelines and suggested material. 174. NAR, Public Remark 208, at 1 (remark). 175. Id. at 2. 176. Blann, Public Comment 250, at 1. But see NAR 2006 SURVEY, supra note 4, at 74 (69% of sellers called just one agent; 74% of sellers discovered their agent through either a referral or a previous relationship with the representative).
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Reppert, Public Remark 294, at 1. See likewise Tradii, Public Remark 340, at 1; Wharton, Public Remark 179, at 1. 178. See, e. g., Earman, Public Remark 73, at 1-2 (typical commission is "well under 6%"); Giorgianni, Public Comment 200, at 1 (" My average 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 cited Real Trends 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 Comment 254, at 1. 181. Id. at 1. 182. Dwyer, Public Comment 55, at 1.
There are a range of options available to purchasers and sellers from complete representatives to very restricted how to get out of timeshare legally service representatives with a wide range of fee structures."); Large, Public Comment 241, at 1 (" our average commission per deal side has dropped 13% this year compared to last year as a result of competitors from discount rate brokerage organization designs running 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 home prices that the broker keeps as a commission, and commission "fees" are the overall dollar amount paid by consumers for genuine estate brokerage services.
185. Weicher, supra note 167, at 121. what is noi in real estate. 186. NAR a logical source of commission information, provided its size and access to MLS information through its regional associations does not study or report commission rates. A NAR economist described at the workshop that any average commission rate reported by a prominent entity such as NAR could be utilized by market participants as a centerpiece for collusion on commission rates.
at 225-26. See likewise NAR, Public Comment 208, at 12 (remark) (" [NAR] does not conduct research study on commission rates out of concerns that the research outcomes have the impact of setting a 'focal point' for specialists to set their commissions."). 187. Weicher, supra note 167, at 124. Weicher's estimations use average home list prices, not typical house prices.
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Id. 189. See Hearing, supra note 1, at 5 (testament 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, readily available at http://www. sec.gov/ Archives/edgar/data/ 1355001/000095012307003335/e31090e10vk. htm #tocpage. 192. A thorough review of the empirical research performed in the property brokerage industry is beyond the scope of this Report.
Turnbull, Trends in Realty 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 Understand About Property Brokerage?, 20 JOURNAL OF PROPERTY RESEARCH STUDY 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, Costs and Rates of Home 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 decreases the commission rate by about 0. 5 portion points"). The average list prices of an existing home in 1980 was $72,800. See U.S. Department of Real Estate and Urban Development, U.S.
2006) [hereinafter "HUD REPORT"], readily available at http://www. huduser.org/periodicals/ushmc/fall06/USHMC_Q306. pdf. At that cost, the study's analytical outcomes forecast a matching commission rate of 6. 25%, causing a commission charge of $4,550. A home costing $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 (excluding 5 locations with insufficient observations for brand-new houses, in 59 percent of the staying market locations the mean commission rate paid was statistically considerably higher for existing houses than for 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 significant at the one percent level for each of the equations tested. See id. at 83. Nevertheless, Weicher notes that the magnitude of the prices impact seems little. 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 increase in house rate, e. g., from 5. 90 percent to 5. 84 or 5. 79 percent."). 208. Goolsby & Childs, supra note 205, at 85. Because the authors just observed the cooperative commission rate, they note that their conclusion rests on the assumption 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 Prices under Competition, 41 JOURNAL OF URBAN ECONOMICS 102 (1997 ). This research study obviously incorporates the data and appropriate 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 performed regressions analyzing how the contract commission rate was affected by different market conditions and real estate variables. As the authors describe, the commission rate recorded in the sample is "the contract rate and therefore does not reflect any modification or changes that may be renegotiated between the home seller and the agent at the time of sale." Id.
213. While it is not possible to measure the relative inflexibility based upon details reported by the authors, extra Visit this website information can be utilized to calculate a rough approximation. Weicher, supra note 166, at 121, reports that Sirmans and Turnbull calculated an average contract commission rate of 5. 8% in Baton Rouge over the duration 1985-1987.