Realtors and the Internet

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Realtors and the Internet

The Internet hasn't slashed transaction costs in residential real estate, as it has in such areas as airline reservations...yet.

Commissions paid to agents still average more than 5% and sometimes reach 7% or more, according to industry estimates. But brokers offering various cost-saving alternatives finally seem to be gaining traction. U.S. antitrust enforcers at the Justice Department and Federal Trade Commission are putting heavy pressure on the industry to give new models a chance.

For instance, the Justice Department in September sued the National Association of Realtors, alleging that its policy on sharing of listing information discriminates against brokers that mainly use Web sites to engage with their customers. The association denies the claim.