Brokerage Firms Aim to Stifle Competition
Monday June 19, 3:58 pm ET

Brokerage Firms Work Together to Stifle Competition, Consumer Group's Report Says

WASHINGTON (AP) -- Many real estate brokerage firms band together to set prices, a consumer group said in a report released Monday.

The brokerage firms work together to maintain commissions charged home sellers at 6 percent to 7 percent, typically $24,000 for the sale of a $400,000 home, and to maintain control of multiple listing services of homes for sale, according to the report by Consumer Federation of America.

" Many traditional real estate brokerage firms, and their organizations, function as a cartel that tries to set prices and restrict service options," said Stephen Brobeck, the federation's executive director.

Spokesmen for the National Association of Mortgage Brokers had no immediate comment on the report's findings.

Consumer Federation said consumers can protect themselves by:


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