|
For Release on October 24, 2005
Contact: Bruce Hahn, President:
571-214-1013 or bhahn@americanhomeowners.org
|
Homeowners Paying Thousands Too Much to Sell Their Homes, says
AHGA
Homeowners Urge Action to Stop Anticompetitive Practices at
Oct. 25 Justice Department/FTC Real Estate Competition Policy
Forum |
Oct. 24, 2005 – Arlington, VA – The American Homeowners Grassroots
Alliance (AHGA), a national consumer advocacy organization serving the
nations’ homeowners, is urging policymakers to tear down the growing
number of artificial barriers to consumer choice that are preventing
consumers from saving money on real estate transactions. They include:
•
Restricting consumer access to alternative competitive new tools for
home buying and selling;
•
Limiting market penetration of creative new services that are available
in other U.S. brokerage industries;
•
Preventing savings in U.S. real estate transaction costs that remain
significantly higher than those in most other developed countries.
In its statement to the Justice Department/FTC, AHGA noted that huge
amounts are often at stake. In some states home sellers can list their
homes in their Multiple Listing Service (MLS) for as little as $300.
However, in many other states new laws promoted by full commission real
estate brokers now prohibit such Internet “listing only” practices. On a
$250,000 home in those states the 5-6% full commission amounts to
$12,500-$15,000. “This forces some homeowners to pay as much as $14,700
too much for services they neither want nor need.” said AHGA President
Bruce Hahn.
AHGA strongly supports the Justice Department’s recent antitrust lawsuit
against the National Association of Realtors’ proposed industry rules
that would allow brokers to ignore their fiduciary duty and limit the
distribution of homeowners’ listings in the MLS. Fiduciary duties have
also been abrogated by state laws that allow one broker to represent the
competing interests of both the buyer and seller in the same
transaction.
AHGA asks policymakers to take steps to allow homeowners to utilize the
same cost-saving tools available in unfettered markets in such other
brokerage industries as travel and securities. Go to
http://www.americanhomeowners.org/AHGA/DoJ-FTC10-25-05.htm
for AHGA’s complete statement. Mr. Hahn can be reached at: 571-214-1013.
About AHGA
The American Homeowners Grassroots Alliance (AHGA) is a national
nonpartisan consumer advocacy organization dedicated to assisting the
nation's 75 million homeowners understand significant policy issues
affecting homeowners and homeownership, and empowering homeowners to
make their voices heard by state and federal officials. AHGA is
headquartered in Arlington, Virginia. For more information please visit
www.americanhomeowners.org.
|