{"id":15946,"date":"2012-05-08T06:32:50","date_gmt":"2012-05-08T13:32:50","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=15946"},"modified":"2012-05-08T06:32:50","modified_gmt":"2012-05-08T13:32:50","slug":"the-economist-asks-why-is-it-so-expensive-to-buy-or-sell-a-house-in-america","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/15946\/the-economist-asks-why-is-it-so-expensive-to-buy-or-sell-a-house-in-america\/","title":{"rendered":"The Economist asks “Why is it so expensive to buy or sell a house in America?”"},"content":{"rendered":"

This is in an article titled “The great realtor rip-off”.<\/a><\/p>\n

The comparison to estate agents in the UK is especially interesting. They make half the commission and close 3 to 4x transactions.<\/p>\n

The article mentions NAR by name and only refers to MLS in passing as ex-cartels:<\/p>\n

The business used to operate like a series of local cartels. In a typical area, a handful of brokers controlled a shared database of available homes, and limited their cheaper rivals\u2019 access to those listings. In 2008 in the United States and 2010 in Canada, regulators struck deals with realtors to open up these databases. Yet since then the average commission has actually risen, from 5.0% in 2005 to 5.4% in 2011, according to REAL Trends, a research firm.<\/p><\/blockquote>\n

“Used to”, huh?<\/p>\n

Its a great read as it sums up the state of the industry\u00a0succinctly\u00a0and in no uncertain terms, but it could have done a better job of laying the blame at the feet of the MLS concept itself. If there were no MLS\/NAR creating $8bn of “economic waste”, it seems to me Bloodhounds would be the brokers and agents left standing, as is apparently the case in UK.<\/div>\n
<\/div>\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

This is in an article titled “The great realtor rip-off”. The comparison to estate agents in the UK is especially interesting. They make half the commission and close 3 to 4x transactions. The article mentions NAR by name and only refers to MLS in passing as ex-cartels: The business used to operate like a series […]<\/p>\n","protected":false},"author":46,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-15946","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":17500,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17500\/overnight-news-doj-sues-nar-nothing-that-matters-changes-redfin-rejoices\/","url_meta":{"origin":15946,"position":0},"title":"Overnight News: DOJ sues NAR. Nothing that matters changes. Redfin rejoices.","author":"Greg Swann","date":"November 20, 2020","format":false,"excerpt":"I saw Housing Wire's story on the Department of Justice's anti-trust suit against the National Association of Realtors, and I thought: \"Yeehaw!\" But then I read Glenn Kelman's odd rejoicing, and I realized that the \"lawsuit\" is a done deal, and nothing that matters will have changed. Vide: From now\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"Ya think it's easy?","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1524,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1524\/nadels-critique-of-commission-structures-gets-wider-distribution\/","url_meta":{"origin":15946,"position":1},"title":"Nadel’s critique of commission structures gets wider distribution","author":"Greg Swann","date":"June 11, 2007","format":false,"excerpt":"Mark Nadel's ground-breaking paper on traditional real estate commission models has been published in an abbreviated form in the Cornell Real Estate Review. Nota bene: I embedded the wrong link for the Cornell version of the paper. It's fixed now. Technorati Tags: compensation for buyer representation, disintermediation, real estate, real\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1993,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1993\/what-would-you-pay-for-a-real-estate-agent-if-the-commission-was-100-optional\/","url_meta":{"origin":15946,"position":2},"title":"What Would You Pay For A Real Estate Agent If The Commission Was 100% Optional?","author":"Dan Green","date":"October 1, 2007","format":false,"excerpt":"Radiohead is selling tracks from their upcoming album \"In Rainbows\" online. The price per track, according to the site, \"is up to you\".\u00a0 Fans can choose how much they want to pay for the MP3 tracks, or not pay anything at all. Was there ever a more confident display of\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/576\/learning-to-negotiate-the-buyers-agents-commission\/","url_meta":{"origin":15946,"position":3},"title":"Learning to negotiate the buyer’s agent’s commission . . .","author":"Greg Swann","date":"October 27, 2006","format":false,"excerpt":"From my column in today's Arizona Republic, a familiar theme. The permanently linked version uses a somewhat longer version of the text. \u00a0Negotiate agent commission In past weeks, we talked about using the simple question \"How much do you charge?\" to negotiate a more reasonable buyer's agent commission. Buyers traditionally\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":555,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/555\/defining-the-divorced-commission-a-short-hand-term-for-understanding-alternative-real-estate-compensation-models\/","url_meta":{"origin":15946,"position":4},"title":"Defining the Divorced Commission: A short-hand term for understanding alternative real estate compensation models . . .","author":"Greg Swann","date":"October 19, 2006","format":false,"excerpt":"I just spent a very informative hour on the phone with Jeff Brown, and I want to summarize what I took away from our conversation. First, Jeff has a very different understanding of the term \"co-broke\" compared to the way it is used in Arizona. When we went to essentially\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":492,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/492\/the-things-most-worth-talking-about-are-the-ones-no-one-ever-wants-to-talk-about-confronting-the-buyers-agents-commission-amidst-a-glacial-glut-of-real-estate-licensees\/","url_meta":{"origin":15946,"position":5},"title":"The things most worth talking about are the ones no one ever wants to talk about: Confronting the buyer’s agent’s commission amidst a glacial glut of real estate licensees . . .","author":"Greg Swann","date":"October 1, 2006","format":false,"excerpt":"I wrote this as a comment at Rain City Guide (which thread is very worth visiting), but I'm echoing it here:> Who pays the commission is all semantics, really. I would disagree with that. Buyers have been persistently misled about who pays the commissions, which skews their behavior. > The\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/15946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=15946"}],"version-history":[{"count":3,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/15946\/revisions"}],"predecessor-version":[{"id":15949,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/15946\/revisions\/15949"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=15946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=15946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=15946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}