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U.S. may sue Realtors on commissions
CNN ^ | May 9, 2005: 6:38 AM EDT | CNN

Posted on 05/09/2005 4:59:07 AM PDT by Koblenz

NEW YORK (Reuters) - U.S. antitrust regulators are preparing to sue the National Association of Realtors (NAR) over policies they believe will illegally restrict commission discounting and harm online competitors, The Wall Street Journal reported Monday.

The effort by the Justice Department and the Federal Trade Commission aims to protect buyers and sellers of homes and could help contain high real-estate costs in a booming housing market, the newspaper said.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy
KEYWORDS: brokers; commissions; fairtrade; govwatch; realestate; realtors
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To: kahoutek
If you want free access to the system that, between license fees, insurance, ongoing (required) education, and CMLS subcription fees cost me about $1500 a year, think again.......

Who said anything about free?

I am pointing out that's it's a closed system. Paying for access would be worth it to me. But not thousands of dollars. And, since you are spending money to make money why the gripe?

101 posted on 05/09/2005 9:00:04 AM PDT by raybbr
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To: rhombus
I am at a lost to figure out how anti-trust laws can be constitutional.

I will acknowledge that the federal Congress has the enumerated power to "regulate commerce," commerce being defined as trade or exchange, and relunctantly agriculture, manufacturing, or mining for argument purposes.

Congress cannot use this enumerated power and violate the Bill of Rights.

Anti-trust laws appear to violate both Amendment V and Amendment IX.

102 posted on 05/09/2005 9:05:37 AM PDT by tahiti
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To: old and tired
In this market, I really think you have to be incompetent, unpresent, crazy, or lazy not to sell your own properties yourself.

There are folks who are capable of doing it themselves and getting the same results without paying a fee; more power to them. But there are lots more who make mistakes which cost them big time!

103 posted on 05/09/2005 10:05:10 AM PDT by JimRed ("Hey, hey, Teddy K., how many girls did you drown today?")
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To: tahiti
Congress cannot use this enumerated power and violate the Bill of Rights.

Who is going to stop them... the Supreme Court? Let's not forget campaign finance reform.

104 posted on 05/09/2005 10:16:59 AM PDT by rhombus
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To: F16Fighter
Boo-F'N-Hoo. Why don't you go out and get your real estate license then? Don't let me even begin to stomp on the "legal profession."

I have a real estate license. I'm not complaining that I only made $950 on the transaction, but rather, I'm complaining about the client for complaining about my $950 fee for five hours work, while not even questioning the $35,400 real estate commission she paid the broker for three hours work.

105 posted on 05/09/2005 10:39:58 AM PDT by Labyrinthos
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To: Maceman

I'm with you. Realtors that actually make money work extremely hard.

BTW, the average annual income of a realtor nationwide is $25,000. That does not sound "overpaid" to me.


106 posted on 05/09/2005 10:44:29 AM PDT by RobRoy (Child support and maintenence (alimony) are what we used to call indentured slavery)
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To: RVN Airplane Driver
Like they say about FSBO's, "With a FSBO you do not save the commission, you earn it.
107 posted on 05/09/2005 10:46:40 AM PDT by RobRoy (Child support and maintenence (alimony) are what we used to call indentured slavery)
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To: RobRoy
BTW, the average annual income of a realtor nationwide is $25,000. That does not sound "overpaid" to me.

Many realtors are part time. The averages are therefore not meaningful.

I don't mind realtors making 6%, just like I don't mind if someone pays $3,000 to fly from NYC to LA. But the realtors shouldn't get state legislatures to mandate that I pay 6%. There should be competition allowed.

108 posted on 05/09/2005 11:28:26 AM PDT by Koblenz (Holland: a very tolerant country. Until someone shoots you on a public street in broad daylight...)
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To: Koblenz

>> But the realtors shouldn't get state legislatures to mandate that I pay 6%. There should be competition allowed.<<

With that I agree, 100%.


109 posted on 05/09/2005 12:11:33 PM PDT by RobRoy (Child support and maintenence (alimony) are what we used to call indentured slavery)
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To: tahiti; Koblenz
"Amen. While I am normally dismissive of anti-trust suits, getting a whole industry to fix laws in certain states to restrict competition is exactly the kind of action that should be taken in an anti-trust case."

I hope you make the same contention about accounting, lawyering, and medical practicing, as well.

My State regulates my medical practice in terms of licensing and quality issues. They likewise regulate realtors in terms of licensing and quality issues.

However, medical price-fixing is illegal and there is nothing that prevents me (other than common sense business considerations) from offering medical services at 10% of what other physicians charge.

If all the M.D.'s in our State got together to ensure that our medical charges never got below a certain figure, the Feds would be on us like pit-bulls on a pork chop.

110 posted on 05/09/2005 12:33:21 PM PDT by Polybius
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To: sitetest

I understand your point. And certainly, buying a property for rental income versus a primary residence are completely different things. However, since we always sent our kids to parochial or private schools, the only factors we ever really looked for in a potential home were safety, convenience, and a reasonably maintained neighborhood. Today I live in one of those ridiculous neighborhoods where homes sell before they're really even on the market. We would never buy here today.


111 posted on 05/09/2005 2:28:40 PM PDT by old and tired
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To: old and tired

Dear old and tired,

Well, you know that we homeschool, so the schools weren't an issue for us. But I guess they are for something like 80% or so of folks with kids.

"Today I live in one of those ridiculous neighborhoods where homes sell before they're really even on the market. We would never buy here today."

Me, too. I couldn't even afford my house, now. My income hasn't gone up 70% in the last four years.

But increasingly, in the Washington area, most of the neighborhoods are becoming ridiculous.


sitetest


112 posted on 05/09/2005 2:53:52 PM PDT by sitetest (If Roe is not overturned, no unborn child will ever be protected in law.)
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To: JimRed
In this market, I really think you have to be incompetent, unpresent, crazy, or lazy not to sell your own properties yourself.

Any honest attorney will advise against this... Hiring a reputable Realtor or Real Estate Attorney will limit SELLER & BUYER liability....as well as minimize frustrations...

The transfer of real property should not be considered on the level of selling a car....

In the event of litigation, most litigating attorney's require at least a $5,000 retainer fee..... Now this is in addition to the Real Estate Attorney fees....GRIN....

Compare that to the commissions and the possibility of added litigation & possible settlements and the Realtor commission is seen in another light...not to mention the Realtor commission is part of the market value of the property....

113 posted on 05/09/2005 4:01:29 PM PDT by cbkaty (I may not always post...but I am always here......)
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To: Polybius
If all the M.D.'s in our State got together to ensure that our medical charges never got below a certain figure, the Feds would be on us like pit-bulls on a pork chop.

Any Realtor in Texas caught fixing prices is subject to losing his/her license..... I always "privately" negotiate my fees.... ...some of my clients have gotten my services for free, some I lost money on, and some got a year's worth of my time....others bought quickly and paid a reasonable commission.

I have never and will never take advantage of those that trust me....NEVER... I am a Texan...and real Texans do not do that...our word is our bond.

114 posted on 05/09/2005 4:10:33 PM PDT by cbkaty (I may not always post...but I am always here......)
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To: cbkaty

I have purchased property without a Realtor and sold one without a Realtor. All three were handled by my attorney at a fraction of the cost a Realtor which was more than offset by the savings of a lower purchase price on the buys and fees on the sale.


115 posted on 05/09/2005 4:16:49 PM PDT by tubebender (We child proofed our house but they still get in...)
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To: Maceman

If they earn it, the market will bear it; and if not, not.

Either way, no need for mandates. There should be maximums, but not minimums.


116 posted on 05/09/2005 4:22:11 PM PDT by Petronski (Pope Benedict XVI: A German Shepherd on the Throne of Peter)
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To: Koblenz

Bump for later read.


117 posted on 05/09/2005 4:32:40 PM PDT by Godebert
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To: Koblenz

bttt


118 posted on 05/09/2005 4:39:17 PM PDT by jslade ("If at first you don't succeed, destroy all evidence that you tried.")
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To: tubebender
I have purchased property without a Realtor and sold one without a Realtor. All three were handled by my attorney at a fraction of the cost a Realtor which was more than offset by the savings of a lower purchase price on the buys and fees on the sale.

Well good...but you are the exception... I charge fees based on my value to my client. I am glad your sales worked out...yet I don't understand how a Real Estate Attorney is cheaper than a Realtor...?

...unless your attorney is one of those without any specialization... I will always wonder why an otherwize reasonable person will use "an attorney outside his expertise" for any reason...but demand a specialist when it comes to healthcare..... Go figure.....

119 posted on 05/09/2005 4:47:47 PM PDT by cbkaty (I may not always post...but I am always here......)
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To: Petronski
Either way, no need for mandates. There should be maximums, but not minimums.

So...would you apply this logic to food, furniture, appliances, and other labor.....maximum limits?

120 posted on 05/09/2005 4:50:04 PM PDT by cbkaty (I may not always post...but I am always here......)
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