Claims of the existence of real estate cartels
The Consumer Federation of America believes that many traditional real estate brokers and their associations are operating as a “cartel” to stifle competition and set prices. According to one of their recent reports, it’s all done to protect the 6 to 7 percent commissions traditional brokers earn.
“The preoccupation of many traditional brokers with maintaining their compensation largely explains not only their opposition to discount and fee-only brokers but also their defense of seller-paid commissions, advocacy of anti-rebate and minimum service laws, and efforts to maintain control of multiple listing services,â€? said Stephen Brobeck, CFA’s executive director.
The National Association of Realtors denies the claims made by CFA.