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Can Real Estate Brokers Affect Home Prices Under Extreme Market Conditions?

Author

Listed:
  • Steven Stelk

    (The University of Southern Mississippi)

  • Leonard V. Zumpano

    (The University of Alabama)

Abstract

This study investigates the impact of the brokerage market on home prices in both a seller's market (2006) and a buyer's market (2009). In both years, homes sold with brokerage assistance realized higher prices when compared with homes sold without the aid of a broker, even after controlling for selection bias in the seller¡¦s choice to use a broker. This is the first study that uses a national dataset from extreme boom and bust markets that has documented evidence of price segmentation in the residential real estate market. The findings may be the result of the market conditions in 2006 and 2009.

Suggested Citation

  • Steven Stelk & Leonard V. Zumpano, 2017. "Can Real Estate Brokers Affect Home Prices Under Extreme Market Conditions?," International Real Estate Review, Global Social Science Institute, vol. 20(1), pages 51-73.
    • Handle: RePEc:ire:issued:v:20:n:01:2017:p:51-73
    as

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    References listed on IDEAS

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    4. Biqing Huang & Ronald Rutherford, 2007. "Who You Going to Call? Performance of Realtors and Non-realtors in a MLS Setting," The Journal of Real Estate Finance and Economics, Springer, vol. 35(1), pages 77-93, July.
    5. Zumpano, Leonard V. & Johnson, Ken H. & Anderson, Randy I., 2003. "Internet use and real estate brokerage market intermediation," Journal of Housing Economics, Elsevier, vol. 12(2), pages 134-150, June.
    6. Asabere, Paul K & Huffman, Forrest E, 1993. "Price Concessions, Time on the Market, and the Actual Sale Price of Homes," The Journal of Real Estate Finance and Economics, Springer, vol. 6(2), pages 167-174, March.
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    19. B. Douglas Bernheim & Jonathan Meer, 2007. "How Much do Real Estate Brokers Add? A Case Study," Discussion Papers 06-041, Stanford Institute for Economic Policy Research.
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    Cited by:

    1. Cedric Behler & Philip Gärtner & Hans-Joachim Linke, 2023. "Marktdominanz von Maklern auf Onlineimmobilienportalen in Deutschland und Kalifornien [Market dominance of real estate brokers on online real estate platforms in Germany and California]," Zeitschrift für Immobilienökonomie (German Journal of Real Estate Research), Springer;Gesellschaft für Immobilienwirtschaftliche Forschung e. V., vol. 9(1), pages 31-61, April.
    2. Jing-Yi Chen & Ming-Hui Wang, 2022. "How Do Political Skills Affect Attitude of Clients in Real Estate Industry?," International Real Estate Review, Global Social Science Institute, vol. 25(1), pages 89-117.

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    More about this item

    Keywords

    Residential real estate market; intermediation; broker¡¦s effect on price; different market conditions;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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