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,” said Stephen Brobeck, CFA’s executive director.
The National Association of Realtors denies the claims made by CFA.