DOJ/FTC Workshop gives voice to limited service models
Yesterday’s Department of Justice’s and Federal Trade Commission’s Public Joint Workshop entitled "Competition and the Real Estate Industry" gave voice to the many alternative brokerage models vying for space in the hotly contested real estate arena. Panelist from a wide spectrum of disciplines surrounding the industry, as well as moderators from the DOJ/FTC, gave differing opinions on their visions for the future of real estate brokerage, however, one message seemed to radiate clearly with participants.
Minimum service requirements have no place in a free and unfettered economy. The effect of such laws clearly seems aimed at impeding the growth of alternative brokerage models, especially flat fee, MLS entry only companies. Steve DelBianco, Executive Director of the NetChoice Coalition, and Tom Early of the National Association of Buyers Agents (NAEBA) combatively and humorously debated leaders of the traditional real estate cartel demonstrating how such impediments to innovative business models as legislatively imposed minimum service requirements serve to harm consumers by creating barriers to brokers wishing to offer consumers choices in real estate services.
Over the past year, the DOJ and FTC have issued a number of letters to state legislatures around the country warning of the deleterious effect of proposed minimum service laws on consumers. So far, the National Association of Realtors and their state level counterparts have been largely successful in foisting bills on the unwitting public that limit consumer choices and help to prop up the antiquated system of bundled real estate brokerage services and full (5-6%) commission real estate.
See Also
- Competition Policy and the Real Estate
IndustryDOJ/FTC Public Workshop - Competition in the Real Estate Industry
Blogsite devoted to competition in real estate
