Homeowners Remove Middle Man

A new website streamlines the home buying process, threatening realtors and their 6% commission.
January 10, 2006, 8am PST | David Gest
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"Across the country, the National Association of Realtors and the 6 percent commission that most of its members charge to sell a house are under assault by government officials, consumer advocates, lawyers and ambitious entrepreneurs. But the most effective challenge so far emanates from" FsboMadison.com, which holds a nearly 20 percent share of the Dane County, Wisconsin, market for residential real estate listings.

"The price competition is startling. FsboMadison listed about 2,000 homes in 2005 and said that about 72 percent of its listings sell. If those 1,440 houses averaged $200,000 per sale, the real estate commissions under the 6 percent system would have been about $17.3 million. [FsboMadison.com] collected about $300,000."

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Published on Tuesday, January 3, 2006 in The New York Times
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