Buying or selling a home is the largest financial transaction most Americans will ever undertake. The median priced home cost $225,334 in 2006, and the median commission paid to real estate brokers came to $11,672. Overall, Americans paid more than $93 billion for brokerage services.

New business models are emerging that allow consumers to save thousands of dollars when they buy or sell a home. Where these practices are allowed, some buyers’ brokers are offering refunds on commissions, and some sellers’ brokers are charging only for services actually used.

Twelve states forbid buyers’ brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers’ brokers than they may want, with no option to waive the extra items.

Some states require real estate closings to be done by lawyers, reducing competition and raising costs. Competition also suffers when brokers exclude low-cost rivals from the multiple listing service (MLS), which limits price competition.