Competition in the Real Estate Brokerage Industry - #12

This section of the DOJ/FTC report concentrates on competition among brokers....or in this case, data that seems to suggest that there is far from enough. The obvious is stated, that real estate is fixed in location and that competition is local in nature. Though national data indicates that no single franchise or large player has a significant market share, there is data quoted to show that in local areas there are brokerages with share in excess of 50%. This is construed as a negative, as the competition is not significant enough in those areas to allow consumer choices or savings.

The low barriers to entry into the business are also discussed briefly in this section. Here's a quote that sums it up: “Becoming a real estate agent is far too easy and too fast for what the service contemplates: The sale of what for many people is both their most important asset, and the one thing that physically binds their family together: a home.”

Entire series: #1, #2, #3, #4, #5, #6, #7, #8, #9, #10, #11, #12, #13, #14, #15, #16, #17, #18, #19 & final