Do real estate brokers support rebate bans?
Some brokers support rebate bans as a means of reducing price competition. For example, when the Kentucky Real Estate Commission surveyed brokers about lifting that state’s rebate ban, here is what some of them said: “If 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.” “This would turn into a bidding war, lessen our profits and cheapen our ‘so-called’ profession.” “If inducements were allowed, they could lead to competitive behavior, which would make us look unprofessional in the eyes of the public.” “I think this would just take money right out of our pocket.” Which states currently ban rebates and/or inducements? Twelve states currently ban rebates and/or inducements: • Alabama • Alaska • Kansas • Louisiana • Mississippi • Missouri • Montana • New Jersey • North Dakota • Oklahoma • Oregon • Tennessee In addition, Iowa prohibits rebates when the consumers use the services of two or more re
