Real estate industry lacks price competition

MLS may discourage discounted commission rates, report finds

There is no price competition in the real estate industry, and the very structure of organized real estate is what may be preventing this, according to a report from the Government Accountability Office released today.

The use of the multiple listing service enables brokers to cooperate, but may discourage them from offering discounted commission rates, the report notes. And while the Internet has opened up more information to consumers, its power may be limited by real estate brokers.