Industry Competition
On May 27, 2008, NAR and the U.S. Department of Justice reached a favorable settlement, concluding a two-year DOJ investigation (followed by two and a half years of litigation) regarding NAR's multiple listing policy as it pertained to the display of listings from the MLS on brokers' virtual office Web sites, or VOWs.
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Latest News
NAR, DOJ Agree on MLS Policy: REALTORS® Compete, Consumers Win (May 27, 2008)
Who's In Your Pocket Now: The Department Of Justice (Realty Times, Oct. 11, 2007)
NAR responds to the May 13 60 Minutes broadcast (May 2007)
NAR's response to "Real Estate Ripoff" (Feb. 19, 2007 )
Read more industry competition news >
NAR's Position
NAR's 1.3 million members work in companies that employ brokerage models of all types, contrary to recent claims. Features of these models include:
- Internet and virtual delivery of services
- Percentage commission formulas
- Flat-fee commission formulas
- MLS-entry only
- Fee-for-service programs
- Consumer commission rebates
- Other "full-service" models
With this wide variety of brokerage models in use, consumers looking to buy or sell a home today can select from a broad spectrum of options.
The facts are:
- There are minimal barriers to entry in real estate
The number of agents and firms in the industry has increased steadily in recent years.
- The real estate industry is not concentrated
Especially when compared to industries like banking. Even the largest real estate firms account for only a small percentage of real estate brokerage transactions.
- All real estate is local
Real estate markets are essentially local and competition within local markets is fierce, including competition among agents in the same firm.
- Firms and agents compete for business every day
The large number of firms, competing in every local market, and the growing number of largely independent contractor agents mean the real estate industry is fiercely competitive. Firms and agents compete for listings and sales at the neighborhood level. Agents also compete with home sellers who choose to sell their property without the assistance of an agent.
- Information about real estate is widely available to consumers
While most home buyers and sellers who use a real estate agent depend on that agent to provide information about the buying and selling process, there are many sources of information readily available online. Consequently, most home buyers start the process by searching online for home listings as well as information about mortgages and related real estate services.
