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May 11, 2005 -- Price-fixing pushed in the real estate indust
Real estate agents, in fear of losing money, have been engaging in anti-competitive practices in states such as Texas, Oklahoma and Kentucky. In those states, agents are trying to make it a crime for people to use a la carte real estate services or to use discounted commission services. Agents have felt threatened by the continual drop in commission, which has dropped from about 7 percent to 5 percent. But with advancing technology, people dont have to accept traditional ways of doing business. Many are using the Internet help to buy homes on their own or to hire agents for limited help. Its causing a civil war inside the real estate industry. Some agents are going with the flow and are offering limited service for a lower commission, while others want fixed commissions and anything else is illegal. Why not let the customer decide? Some people still want the full service agents, but others do not. Making it against the law is simply corrupt, though. The Texas Real Estate Commission is the latest group trying to do this, and Clark thinks its ridiculous. States should not be allowed to interfere in the free market and should be penalized if they do.
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