The U.S. Federal Trade Commission and U.S. Department of Justice just released a "Competition in the Real Estate Brokerage Industry" report that calls for a repeal of real estate laws, rules and regulations that limit choices for consumers, limit competition for new brokerage models and don't appear to provide any justifiable benefits for consumers. The report also suggests that industry commission rates have been relatively inflexible and calls for an in-depth study of commission rates and fees.
(Written with sarcasm) I can certainly see why! The commission fees in 1991 were $9,389. In 2006 they were a whopping $11,549! And when that 5.02% commission is split between 2 cooperating brokers that is a mind boggling $1,080 raise for each broker after 15 years. This is an outrage and real estate agents certainly do not deserve such a lucrative increase in income. It is very clear why our federal tax dollars should be spent on such an in depth - and expensive - study. Kudos to you DOJ & FTC. Kudos.
