{"id":263,"date":"2007-10-11T11:17:22","date_gmt":"2007-10-11T18:17:22","guid":{"rendered":"https:\/\/redfindevelop.wpengine.com\/blog\/2007\/10\/doj_competition_and_innovation_are_good_even_in_real_estate.html"},"modified":"2020-10-06T19:38:48","modified_gmt":"2020-10-07T02:38:48","slug":"doj_competition_and_innovation_are_good_even_in_real_estate","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/doj_competition_and_innovation_are_good_even_in_real_estate\/","title":{"rendered":"DoJ: Competition and Innovation are Good, Even in Real Estate"},"content":{"rendered":"<p>Yesterday, the Department of Justice published a <a href=\"http:\/\/www.usdoj.gov\/atr\/public\/real_estate\/save.htm\" title=\"http:\/\/www.usdoj.gov\/atr\/public\/real_estate\/save.htm\">website<\/a> that focuses on the importance to consumers of competition in real estate.  There\u2019s a good summary on the <a href=\"http:\/\/blog.inman.com\/\" title=\"http:\/\/www.inman.com\/inmannews.aspx?ID=64857\">InmanNews blog<\/a>. They found that that commissions have risen along with home prices, which is no surprise to anyone who&#8217;s been in the market.  But the data are interesting, and the DoJ also adds specific information on regulations by state.<br \/>\nThe DoJ estimates that the median commission paid by consumers so far in 2007 is $11,302.  This includes both buyers\u2019 and sellers\u2019 commissions.  (The buyers\u2019 agent is usually paid half of the sellers\u2019 agent\u2019s commission, so while buyers\u2019 agents may charge no direct fee, they are still receiving up to 3% of the total costs paid by a buyer at closing.)<br \/>\nAs a point of comparison, we looked at commissions paid by Redfin customers who bought in 2007.  We focused on buyers&#8217; commissions only, where we have the most data.   Redfin\u2019s average commission was $15,071, and because we refund 2\/3 of our commission back to the buyer, $10,194 of that went back to consumers.   By market, Redfin\u2019s refund to buyers breaks down as follows:<br \/>\n<a href=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2007\/10\/redfin-buyer-refund-2007-ytd.jpg\" title=\"Redfin Buyer Refund, 2007 Year to Date\"><img decoding=\"async\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2007\/10\/redfin-buyer-refund-2007-ytd.jpg\" alt=\"Redfin Buyer Refund, 2007 Year to Date\" \/><\/a><br \/>\nThis tells us a couple of things:<\/p>\n<ol>\n<li>Redfin buyers are buying      expensive homes.  Assuming a total commission of 6%, which      is typical in our markets, our buyers paid a little over $500,000 for      their homes.  That&#8217;s much higher than the median home price of $218,184,  but Redfin is also in some of the most expensive housing markets in the country.<\/li>\n<li>Of course, where house prices      are high, consumers pay much more than the median for commissions.       Again assuming a 6% commission, total commissions (both buyers\u2019 and      sellers\u2019) would have been over $30,000 on average for these homes, much      higher than the $11,302 that concerned the DoJ.<\/li>\n<\/ol>\n<p>Redfin buyers are successfully searching our MLS listings to find properties on their own, then working with our local agents to negotiate and close the deal.  They\u2019re buying expensive houses and saving a lot of money.  And the DoJ would seem to think that\u2019s a good thing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday, the Department of Justice published a website that focuses on the importance to consumers of competition in real estate. There\u2019s a good summary on the InmanNews blog. They found that that commissions have risen along with home prices, which is no surprise to anyone who&#8217;s been in the market. But the data are interesting, [&hellip;]<\/p>\n","protected":false},"author":13096,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[43,51],"tags":[13],"dashboard":[],"coauthors":[],"class_list":["post-263","post","type-post","status-publish","format-standard","hentry","category-housing-equality-policy","category-policy","tag-redfin-tools"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>DoJ: Competition and Innovation are Good, Even in Real Estate - Redfin Real Estate News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.redfin.com\/news\/doj_competition_and_innovation_are_good_even_in_real_estate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DoJ: Competition and Innovation are Good, Even in Real Estate\" \/>\n<meta property=\"og:description\" content=\"Yesterday, the Department of Justice published a website that focuses on the importance to consumers of competition in real estate. There\u2019s a good summary on the InmanNews blog. They found that that commissions have risen along with home prices, which is no surprise to anyone who&#8217;s been in the market. 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