Final answer:
If TREC set a standard commission rate for industry use and licensees acted upon that standard, it could result in a more uniform pricing structure across the industry. This could lead to increased competition based on service quality, and consumers may benefit from more transparent pricing.
Step-by-step explanation:
If TREC set a standard commission rate for industry use and licensees acted upon that standard, it would result in a more uniform pricing structure across the industry. This could lead to increased competition among real estate agents and brokers based on the quality of their services rather than commission rates. In turn, consumers may benefit from more transparent pricing and the ability to compare services more easily.
For example, if TREC set a standard commission rate of 5% for all real estate transactions, this would mean that all licensees would charge the same commission percentage on the sale of a property. As a result, customers would not have to negotiate commission rates for different agents or worry about overpaying for services.
However, it is important to note that setting a standard commission rate may also have some disadvantages. Some licensees who typically charge higher commission rates may be discouraged from providing their services if they are unable to set their own rates. Additionally, in certain situations where market conditions are not favorable, a fixed commission rate may not adequately compensate agents for the time and effort they put into selling a property.