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[quote=Anonymous][quote=Anonymous]I don’t understand why there is this obsession with moving to an hourly structure. [/quote]

The obsession is consumer choice. If the consumer wants a fixed percent, it should be an option. If the consumer wants an hourly structure, it should be an option. Who/what opposes hourly structure? NAR. If you want to rebate, it is only an option if you are in a state where rebates are legal. Why is rebating illegal in certain states? The real estate industry is behind these laws.

Why does the real estate industry want anti-rebate laws? Like the minimum service laws they promote: to prevent price competition, to limit consumer choice:

[quote]During the course of the investigation, DOJ found evidence that brokers wanted to restrict rebates because they understood that rebates are a form of price competition. As noted in the Complaint, in response to a survey asking brokers whether the Kentucky Real Estate Commission should retain the rebate ban, one broker predicted “[I]f we give rebates and inducements, it would get out of control and all clients would be wanting something. The present law keeps it under control.”247 Another broker predicted: [b]“This [lifting the rebate ban] would turn into a bidding war, lessen our profits and cheapen our ‘so-called’ profession.” [/b]Another broker observed: “If inducements were allowed, they could lead to competitive behavior, which would make us look unprofessional in the eyes of the public.”[/quote]

https://www.antitrustinstitute.org/wp-content/uploads/2021/02/1.pdf

(Those remarkable quotes are from agents, speaking about their own industry, their own " ‘so-called’ profession" - broker's words)

The buyer/seller agency compensation arrangement is another feature of the industry that limits choice and makes no competitive sense.

[quote]It does not take much creativity to imagine a different system. [b]By untying the buyer’s and seller’s compensation offers, the fee structure for realty services would mimic virtually every other market for professional services in the United States.[/b] Consumers could choose the level of service that fits their needs. Buyer’s agents would be paid by the buyers and seller’s agents would be paid by the sellers. The likelihood of selling a home would not depend on what the seller pays the buyer’s agent[/quote]

https://www.cato.org/regulation/summer-2021/anticompetition-buying-selling-homes#conclusion

Again the obsession is choice. The real estate industry is against choice, always has been.

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