DOJ wants antitrust review of real estate commissions in Davis suit
Summary
The Department of Justice (DOJ) is scrutinizing real estate agent commissions, potentially impacting the costs associated with home sales. Hosts should be aware that the DOJ is pushing back against practices that might inflate commissions, which could indirectly affect property values and thus, rental investments. This may lead to changes in the real estate market, potentially impacting costs for hosts.
Key Insights
- •The DOJ is pushing for courts to apply a "per se" analysis in commission lawsuits, which assumes rules are inherently anticompetitive.
- •The DOJ is arguing that "unreasonable" trade group rules may be inflating real estate agent commissions.
Action Items
- ✓Monitor local real estate market trends and potential shifts in commission structures. This could indirectly affect property values and potentially rental profitability.Effort: lowImpact: medium
Common Mistakes
- ⚠Failing to stay informed about potential changes in local real estate market dynamics due to antitrust actions could lead to inaccurate property value assessments and potentially impact your investment strategies.
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