Industry News

Consumers don’t know much about real estate, says CFA

Survey shows some confusion about industry pricing, regulation

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A consumer survey released today revealed that most respondents believe a 5 percent to 6 percent commission paid to real estate professionals for the sale of a $300,000 home is too high; 41 percent believe the real estate industry or its agents set the commission rate; and 13 percent believe commissions are set by state law. The report, by the Consumer Federation of America, a research and advocacy organization that promotes pro-consumer policy on a variety of issues, is based on an analysis of June 2006 survey data collected by survey firm Opinion Research Corp. for the American Association of Retired Persons. The survey included 2,036 participants, of which about 28 percent used the services of a real estate agent or broker in the past five years. The Consumer Federation has released several reports in the past year related to the real estate industry, including a December report on the growth of nontraditional real estate brokers and challenges that they face, a July re...