GAO report finds MLS may discourage discounted commission rates

According to a report published today by the Government Accounting Office (GOA), the Realtor Multiple Listing Service (MLS) system prevents competition in real estate commission rates charged to home sellers.

One of the notable findings of the report was that it seems that the same system designed to promote cooperation among real estate brokers may be used to discriminate against home sellers offering a lower than average commission rate.

Real estate agents are able to view the commission rates being made available to Realtors by home sellers through the MLS system. Agents may determine whether or not to show a property based on the commission they will be paid for bringing a buyer to the property. All things being equal, an agent may elect not to show a property with a lower than average commission rate being offered.

The report notes that although housing prices have steadily increased in many areas in recent years, along with the associated commissions paid, the amount of work performed by real estate agents has remained relatively stable.

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