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Realtors' fees, and lawyers'



Real estate agents charge fixed percentage fees for handling home sales. Today, at least in the case of the more pricey residential markets, the resulting fees can seem very high in relation to the services being rendered, yet they are highly resistant to price competition. Not surprisingly, many antitrust and regulatory experts believe that ending the system of fixed realty commissions (perhaps by removing government policies that prop it up) would work to the great benefit of budget-minded consumers, as happened earlier with stockbroker and travel-agent commissions. David Giacalone is reminded of another variety of fixed-percentage fees which likewise appear to be high and sticky even in straightforwardly served cases, namely the fees charged by personal-injury lawyers. How long before they come under reformist scrutiny too?

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.