Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MJ who wrote (14522)	10/26/2003 6:26:33 AM
From: Tradelite	Read Replies (2) \| Respond to of 306849

MJ, there is no "price fixing" in commissions. This would be a violation of anti-trust law, and testers from the government have their hooks out all the time in an effort to uncover such practices where they might exist. They hardly do exist any more, after enforcement nailed several prominent brokerage firms in the U.S. a couple decades ago. The cases were well-publicized, and are the focus of extensive training given to most new agents entering the business, so they can keep their firms out of trouble by avoiding any discussion of fees with competitors. Each brokerage firm and in some cases, each agent determines the fee to be charged--they do not do this in collusion with other companies or other agents. Real estate fees, just like the price of groceries, do have to be competitive and in line with the market as a whole. This does not equal price-fixing. If a company can't get business with the fees its charging, it will reduce them or go out of business. Just because some people don't like the fees doesn't mean they aren't acceptable to enough people. It's amazing to have to keep pointing this stuff out, but fees are also based on the level and quality of services rendered. If the services aren't needed or desired, the fees wouldn't be necessary, either.