Consumers don't have enough understanding of the fee structures in the real estate industry and don't realize that they have negotiating power over fees.
Federal authorities ask state lawmakers to consider repealing laws that harm competition among real estate brokers. The call came as part of a series of recommendations aimed at providing property buyers with greater information about the industry.
In a report released by the Justice Department's antitrust division and the Federal Trade Commission, the agencies said efforts are needed to ensure brokers act in a manner fair to consumers. They pledged to continue monitoring the conduct of real estate broker associations, especially when they act in concert, and to bring enforcement action when necessary.
The report said the federal government will try to inform state lawmakers and industry regulators about the effects of state and local laws or regulations on competition. And it urged state legislatures to consider repealing laws that limit choice and reduce the ability of new entrants in the real estate industry to compete.
Source: The Wall Street Journal, May 9, 2007
