Residential real estate brokers are competitive but the industry’...
Residential real estate brokers are competitive but the industry’s main driver seems to be based more on non- price variables -- such as quality, reputation and level of service -- than on brokerage fees, a new Govt. Accountability Office…
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(GAO) report indicated. The sector’s online multiple listing services (MLS) is a potential cause for the apparent lack of price variation, investigators said. The system facilitates cooperation among brokers in a way that can benefit consumers but may discourage brokers from deviating from conventional commission rates. The Internet changed how consumers look for real estate, facilitating creation and growth of alternatives to traditional brokers, GAO found. Websites offer consumers access to property data once available only through direct contact with brokers. The Internet also fosters alternative residential real estate brokerage models, including discount brokers and broker referral services. Industry analysts cited as obstacles to wider Web use in real estate such barriers as restrictions on listing data on sites, traditional brokers’ resistance to cooperating with alternative firms, and certain state laws and regulations. This month, the Justice Dept. sued the National Assn. of Realtors (NAR), alleging the group depresses competition by requiring NAR-affiliated MLS listers to let brokers withhold listings from other brokers’ sites via an “opt out.” This enables traditionally minded brokers to keep competitors’ customers from seeing all MLS listings (WID Sept 9 p9).