Government Thinks Realtors Charging Too Much

[jeffrey]

According to a report in The Wall Street Journal, the Justice Department and the Federal Trade Commission may take antitrust action against the National Association of Realtors (NAR) due to policies the NAR has adopted which restrict commission discounting and harm online Realtors.

At issue are bylaws the NAR has adopted that the government says are illegal because they stifle online rivals and discounters. The NAR bylaw would allow its members to withhold property listings to online Realtors who typically charge less than the traditional 6% which is divided between the buying and selling Realtor agents.

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By withholding properties from the Realtors that are most likely to discount, consumers end up paying more in fees than if the listings were available to all. The government and the NAR have been in discussions, but an agreement hasn't been able to be reached and antitrust litigation seems likely.

[Fern]

Re: Government Thinks Realtors Charging Too Much

At some time in the distant past, 6% realtor commissions made sense. But home prices nationwide have ballooned and remained inflated for many years. So no matter how hard a realtor worked to market my modest small home, valued in the $400K range here in the Northeast, I would be HARD PRESSED to say they had earned a $12K commission (1/2 the 6%).

That's ridiculous!!! No wonder so many people are getting their realtors' licenses. Easy way to make a quick buck.

If you want to sell your house with low commission, try Foxon's.