New UC Berkeley Study Shows Realtors Operate As A Cartel To Inflate Fees By $50b Each Year
Obstacles to Price Competition in the Residential Real Estate Brokerage Market by Mark Nadel | UC Berkeley Business Law Journal | https://lawcat.berkeley.edu/record/1194892
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AUSTIN, Texas, March 15, 2021 /PRNewswire/ New research, conducted by Mark Nadel and published in the UC Berkeley Business Law Journal, found traditional brokers have used anticompetitive practices to overcharge Americans by $50 billion annually. The paper describes how the cartel operated by the National Association of Realtors (NAR) and their members works to protect the traditional 6% commission fee against price competition and firms operating outside the MLS structure who deploy superior consumer-facing technology and customer service to dramatically lower cost.
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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.
Inman Connect
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.