Multiple lawsuits are challenging the way agents get paid. Inman asked experts what that means, and how the future of real estate might evolve as a result of changes to the commission structure.
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Real estate commissions are inflated by as much as $50 billion per year due to the lack of price competition created by having listing brokers set co-op fees for buyer brokers, according to the report in the Berkeley Business Law Journal.
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Real estate commissions are inflated by as much as $50 billion per year due to the lack of price competition created by having listing brokers set co-op fees for buyer brokers, according to an article in the Berkeley Business Law Journal published this month.
The article, called “Obstacles to Price Competition in the Residential Real Estate Brokerage Market,” is authored by Mark Nadel, an attorney and policy advisor for the Federal Communications Commission (FCC) since 1990. In a footnote, Nadel stresses that the article represents solely his personal views, however. Nadel wrote a similar paper back in 2006 in which he criticized the real estate industry’s commission structure and said commissions were inflated by $30 billion.
Everybody else is going to lose : Tech industry exiles turn on Google, Facebook Everybody else is going to lose : Tech industry exiles turn on Google, Facebook
By Daisuke Wakabayashi
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Three years ago, before she became an antitrust scholar whose work laid the blueprint for a new wave of monopoly lawsuits against Big Tech, Dina Srinivasan was a digital advertising executive bored with her job and worried about the bleak outlook for the industry. It just felt like, OK, Facebook and Google were going to win, and everybody else is going to lose, and that s just the way the cards were stacked, Srinivasan said. I don t think this was widely understood.