Brokerage Firms' Characteristics and the Sale of Residential Property
AbstractBrokerage firms are continually searching for opportunities to improve their business and position in the market. Given a resistance to price competition, firms typically compete by offering different services to their customers. These services range from media access to new search technology to reputation. Firms offering new services may enhance the experience of home transition for individuals and attract business when past customers describe their comfort with the firm. This paper empirically examines the firms' impact on a more tangible feature of the home sale process: the sale price. There is a generally accepted trade-off when individuals sell their homes. Speed of sale and price obtained are balanced against each other. Holding days on the marketing constant, as well as property amenities, evidence is presented suggesting that some firms consistently achieve higher sale prices than other firms. Specifically, in the given market, when homes are listed with one of the largest firms, the owner can anticipate a significantly higher sale price. This size effect is very limited as some large firms consistently sell at prices below the small firm comparison group.
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Bibliographic InfoArticle provided by American Real Estate Society in its journal Journal of Real Estate Research.
Volume (Year): 10 (1995)
Issue (Month): 1 ()
Contact details of provider:
Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Web page: http://www.aresnet.org/
Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
Find related papers by JEL classification:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
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