Advanced Search
MyIDEAS: Login

What Do We Know About Real Estate Brokerage?

Contents:

Author Info

Registered author(s):

    Abstract

    Many facets of real estate brokerage have been examined in studies appearing in the literature over the last several years. This review attempts to organize the research around six questions concerning the brokerage industry: (1) What is the nature of the market for brokerage services and how does it influence the individual firm; (2) What factors determine broker and agent compensation; (3) How does brokerage participation influence time on the market and price; (4) Is the brokerage market efficient and equitable;(5) Must brokerage firms assume greater liability; and (6) How do brokerage markets vary internationally. In examining each question, the review points out the major focus of the research and summarizes important findings. Its purpose is to identify key issues facing the brokerage industry and suggest avenues for future study.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol20n0102/01-5_30.pdf
    File Function: Full text
    Download Restriction: no

    Bibliographic Info

    Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

    Volume (Year): 20 (2000)
    Issue (Month): 1 ()
    Pages: 5-30

    as in new window
    Handle: RePEc:jre:issued:v:20:n:1:2000:p:5-30

    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
    Email:
    Web page: http://www.aresnet.org/

    Order Information:
    Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
    Email:
    Web: http://aux.zicklin.baruch.cuny.edu/jrer/about/get.htm

    Related research

    Keywords:

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. William T. Hughes, Jr., 1995. "Brokerage Firms' Characteristics and the Sale of Residential Property," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 45-56.
    2. Thomas J. Miceli, 1988. "Information Costs and the Organization of the Real Estate Brokerage Industry in the U.S. and Great Britain," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(2), pages 173-188.
    3. Bagnoli, Mark & Khanna, Naveen, 1991. "Buyers' and Sellers' Agents in the Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 4(2), pages 147-56, June.
    4. Thomas J. Miceli, 1989. "The Optimal Duration of Real Estate Listing Contracts," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(3), pages 267-277.
    5. Linda L. Johnson & Michael J. Dotson & B.J. Dunlap, 1988. "Service Quality Determinants and Effectiveness in the Real Estate Brokerage Industry," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 21-36.
    6. Leonard V. Zumpano & Harold W. Elder, 1994. "Economies of Scope and Density in the Market for Real Estate Brokerage Services," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 22(3), pages 497-513.
    7. David Geltner & Brian D. Kluger & Norman G. Miller, 1991. "Optimal Price and Selling Effort from the Perspectives of the Broker and Seller," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(1), pages 1-24.
    8. Buttimer, Richard J, Jr, 1998. "A Contingent Claims Analysis of Real Estate Listing Agreements," The Journal of Real Estate Finance and Economics, Springer, vol. 16(3), pages 257-67, May.
    9. A. Ason Okoruwa & G. Donald Jud, 1995. "Buyer Satisfaction with Residential Brokerage Services," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 15-22.
    10. G. Donald Jud & Terry G. Seaks & Daniel T. Winkler, 1996. "Time on the Market: The Impact of Residential Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 447-458.
    11. James D. Shilling & C. F. Sirmans, 1988. "The Effects of Occupational Licensing on Complaints Against Real Estate Agents," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 1-9.
    12. Theron R. Nelson & Joseph Rabianski, 1988. "Consumer Preferences in Housing Market Analysis: An Application of Multidimensional Scaling Techniques," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(2), pages 138-159.
    13. Sirmans, C. F. & Turnbull, Geoffrey K., 1997. "Brokerage Pricing under Competition," Journal of Urban Economics, Elsevier, vol. 41(1), pages 102-117, January.
    14. Jud, G Donald & Rogers, Ronald C & Crellin, Glenn E, 1994. "Franchising and Real Estate Brokerage," The Journal of Real Estate Finance and Economics, Springer, vol. 8(1), pages 87-93, January.
    15. James E. Larsen, 1991. "Leading Residential Real Estate Sales Agents and Market Performance," Journal of Real Estate Research, American Real Estate Society, vol. 6(2), pages 241-249.
    16. Michael A. Arnold, 1992. "The Principal-Agent Relationship in Real Estate Brokerage Services," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(1), pages 89-106.
    17. Paul K. Asabere & Forrest E. Huffman & Seyed Mehdian, 1993. "Mispricing and Optimal Time on the Market," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 149-155.
    18. James R. Frew & G. Donald Jud & Willard McIntosh, 1993. "A Note on Agency Size and Brokerage Commission Splits," Journal of Real Estate Research, American Real Estate Society, vol. 8(2), pages 287-291.
    19. Abdullah Yavas & Peter F. Colwell, 1995. "A Comparison of Real Estate Marketing Systems: Theory and Evidence," Journal of Real Estate Research, American Real Estate Society, vol. 10(5), pages 583-600.
    20. Maurizi, Alex, 1974. "Occupational Licensing and the Public Interest," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 399-413, Part I, M.
    21. Edward A. Baryla & Leonard V. Zumpano, 1995. "Buyer Search Duration in the Residential Real Estate Market: The Role of the Real Estate Agent," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 1-14.
    22. Han Bin Kang & Mona J. Gardner, 1989. "Selling Price and Marketing Time in the Residential Real Estate Market," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 21-35.
    23. John H. Crockett, 1982. "Competition and Efficiency in Transacting: The Case of Residential Real Estate Brokerage," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(2), pages 209-227.
    24. James R. Frew & G. Donald Jud, 1986. "The Value of a Real Estate Franchise," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 374-383.
    25. Ferreira, Eurico J & Sirmans, G Stacy, 1989. "Selling Price, Financing Premiums, and Days on the Market," The Journal of Real Estate Finance and Economics, Springer, vol. 2(3), pages 209-22, September.
    26. Donald Haurin, 1988. "The Duration of Marketing Time of Residential Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 396-410.
    27. Norman G. Miller, 1978. "Time on the Market and Selling Price," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 6(2), pages 164-174.
    28. 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 167-74, March.
    29. Michel Glower & Donald R. Haurin & Patric H. Hendershott, 1998. "Selling Time and Selling Price: The Influence of Seller Motivation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 26(4), pages 719-740.
    30. Tirtiroglu, Dogan, 1996. "Capitalization of Brokerage Commissions: The Case of Nonlocal Buyers and Sellers," Journal of Housing Economics, Elsevier, vol. 5(2), pages 193-206, June.
    31. Susan Logan Nelson & Theron R. Nelson, 1995. "RESERV: An Instrument for Measuring Real Estate Brokerage Service Quality," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 99-114.
    32. Thomas Potter & Theron R. Nelson & Susan Logan Nelson, 1991. "Product Liability Issues in Real Estate Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 6(1), pages 87-98.
    33. Colin Read, 1988. "Price Strategies for Idiosyncratic Goods-The Case of Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 379-395.
    34. Donald R. Levi & Curtis D. Terflinger, 1988. "A Legal-Economic Analysis of Changing Liability Rules Affecting Real Estate Brokers and Appraisers," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 133-149.
    35. John D. Benjamin & Peter T. Chinloy, 1995. "Technological Innovation in Real Estate Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 35-44.
    36. Mincer, Jacob, 1970. "The Distribution of Labor Incomes: A Survey with Special Reference to the Human Capital Approach," Journal of Economic Literature, American Economic Association, vol. 8(1), pages 1-26, March.
    37. Carroll, Wayne, 1989. "Fixed-Percentage Commissions and Moral Hazard in Residential Real Estate Brokerage," The Journal of Real Estate Finance and Economics, Springer, vol. 2(4), pages 349-65, December.
    38. Chunchi Wu & Peter F. Colwell, 1986. "Equilibrium of Housing and Real Estate Brokerage Markets Under Uncertainty," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(1), pages 1-23.
    39. Hossein Samiei & Garry J. Schinasi, 1994. "Real Estate Price Inflation, Monetary Policy, and Expectations in the United States and Japan," IMF Working Papers 94/12, International Monetary Fund.
    40. Linda L. Johnson & Christine Loucks, 1986. "The Effect of State Licensing Regulations on the Real Estate Brokerage Industry," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(4), pages 567-582.
    41. Abdullah Yavaş, 1992. "A Simple Search and Bargaining Model of Real Estate Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(4), pages 533-548.
    42. G. Stacy Sirmans & Philip G. Swicegood, 1997. "Determinants of Real Estate Licensee Income," Journal of Real Estate Research, American Real Estate Society, vol. 14(2), pages 137-154.
    43. Schroeter, John R., 1987. "Competition and Value-Of-Service Pricing in the Residential Real Estate Brokerage Market," Staff General Research Papers 11116, Iowa State University, Department of Economics.
    44. Jud, G Donald & Winkler, Daniel T, 1998. "The Earnings of Real Estate Salespersons and Others in the Financial Services Industry," The Journal of Real Estate Finance and Economics, Springer, vol. 17(3), pages 279-91, November.
    45. John R. Knight & C.F. Sirmans & Geoffrey K. Turnbull, 1994. "List price signaling and buyer behavior in the housing market," Proceedings, Federal Reserve Bank of Philadelphia, pages 177-195.
    46. James E. Larsen & Won J. Park, 1989. "Non-Uniform Percentage Brokerage Commissions and Real Estate Market Performance," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 422-438.
    47. Joyce M. Johnson & Hugh O. Nourse & Ellen Day, 1988. "Factors Related to the Selection of a Real Estate Agency or Agent," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 109-118.
    48. Salant, Stephen W, 1991. "For Sale by Owner: When to Use a Broker and How to Price the House," The Journal of Real Estate Finance and Economics, Springer, vol. 4(2), pages 157-73, June.
    49. Abdullah Yavas & Shiawee Yang, 1995. "The Strategic Role of Listing Price in Marketing Real Estate: Theory and Evidence," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 23(3), pages 347-368.
    50. Stephen E. Roulac, 1993. "Environmental Due Diligence Information Requirements and Decision Criteria," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 139-148.
    51. Roy T. Black & Hugh O. Nourse, 1995. "The Effect of Different Brokerage Modes on Closing Costs and House Prices," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 87-98.
    52. Mark G. Dotzour & Everard Moorhead & Daniel T. Winkler, 1998. "The Impact of Auctions on Residential Sales Prices in New Zealand," Journal of Real Estate Research, American Real Estate Society, vol. 16(1), pages 57-72.
    53. Anglin, Paul M, 1994. "Contracts for the Sale of Residential Real Estate," The Journal of Real Estate Finance and Economics, Springer, vol. 8(3), pages 195-211, May.
    54. Michael Glower & Patric H. Hendershott, 1988. "The Determinants of REALTOR Income," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 53-68.
    55. Michael A. Abelson & K. Michele Kacmar & Ellen F. Jackofsky, 1990. "Factors Influencing Real Estate Brokerage Sales Staff Performance," Journal of Real Estate Research, American Real Estate Society, vol. 5(2), pages 265-276.
    56. Kevin E. Villani & John Simonson, 1982. "Real Estate Settlement Pricing: A Theoretical Framework," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(3), pages 249-275.
    57. Jud G., Donald & Winkler, Daniel T., 1994. "What Do Real Estate Brokers Do: An Examination of Excess Returns in the Housing Market," Journal of Housing Economics, Elsevier, vol. 3(4), pages 283-295, December.
    58. Peter F. Colwell & David W. Marshall, 1986. "Market Share in the Real Estate Brokerage Industry," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(4), pages 583-599.
    59. Thomas S. Zorn & James E. Larsen, 1986. "The Incentive Effects of Flat-Fee and Percentage Commissions for Real Estate Brokers," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(1), pages 24-47.
    60. Anglin, Paul M & Arnott, Richard, 1991. "Residential Real Estate Brokerage as a Principal-Agent Problem," The Journal of Real Estate Finance and Economics, Springer, vol. 4(2), pages 99-125, June.
    61. Peter Chinloy, 1988. "The Real Estate Brokerage: Commissioned Sales and Market Values," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 37-51.
    62. Shiawee X. Yang & Abdullah Yavas, 1995. "Bigger is not Better: Brokerage and Time on the Market," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 23-34.
    63. Glenn E. Crellin & James R. Frew & G. Donald Jud, 1988. "The Earnings of REALTORS: Some Empirical Evidence," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 69-78.
    64. Frew, James R., 1987. "Multiple listing service participation in the real estate brokerage industry: Cooperation or competition?," Journal of Urban Economics, Elsevier, vol. 21(3), pages 272-286, May.
    65. Thomas J. Miceli, 1992. "The Welfare Effects of Non-Price Competition Among Real Estate Brokers," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 20(4), pages 519-532.
    66. Michael Carney, 1982. "Costs and Pricing of Home Brokerage Services," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 10(3), pages 331-354.
    67. Thomas J. Miceli, 1991. "The Multiple Listing Service, Commission Splits, and Broker Effort," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 19(4), pages 548-566.
    68. Marsha L. Richins & William C. Black & C.F. Sirmans, 1987. "Strategic Orientation and Marketing Strategy: An Analysis of Residential Real Estate Brokerage Firms," Journal of Real Estate Research, American Real Estate Society, vol. 2(2), pages 41-54.
    69. James R. Follain & Terry Lutes & David A. Meier, 1987. "Why Do Some Real Estate Salespeople Earn More Than Others?," Journal of Real Estate Research, American Real Estate Society, vol. 2(1), pages 73-81.
    70. Rajiv Kalra & Kam C. Chan, 1994. "Censored Sample Bias, Macroeconomic Factors, and Time on Market of Residential Housing," Journal of Real Estate Research, American Real Estate Society, vol. 9(2), pages 253-262.
    71. Karl L. Guntermann & Richard L. Smith, 1988. "Licensing Requirements, Enforcement Effort and Complaints Against Real Estate Agents," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 11-20.
    72. William C. Goolsby & Barbara J. Childs, 1988. "Brokerage Firm Competition in Real Estate Commission Rates," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 79-85.
    73. Abdullah Yavas, 1996. "Matching of Buyers and Sellers by Brokers: A Comparison of Alternative Commission Structures," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 24(1), pages 97-112.
    74. G. Donald Jud, 1983. "Real Estate Brokers and the Market for Residential Housing," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 11(1), pages 69-82.
    75. Leonard V. Zumpano & Donald L. Hooks, 1988. "The Real Estate Brokerage Market: A Critical Reevaluation," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(1), pages 1-16.
    76. Gene A. Marsh & Leonard V. Zumpano, 1988. "Agency Theory and the Changing Role of the Real Estate Broker: Conflicts and Possible Solutions," Journal of Real Estate Research, American Real Estate Society, vol. 3(2), pages 151-164.
    77. Geltner, David M. & Kluger, Brian D. & Miller, Norman G., 1992. "Incentive commissions in residential real estate brokerage," Journal of Housing Economics, Elsevier, vol. 2(2), pages 139-158, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Violand, Wendy & Simon, Arnaud, 2011. "Real estate brokers: do they inflate housing prices? The case of France," Economics Papers from University Paris Dauphine 123456789/515, Paris Dauphine University.
    2. Leonard V. Zumpano & Ken Johnson & Randy I. Anderson, 2007. "Listing Specialization and Residential Real Estate Licensee," Journal of Real Estate Research, American Real Estate Society, vol. 29(1), pages 75-90.
    3. Thomas J. Miceli & Katherine A. Pancak & C. F. Sirmans, 2006. "Is the Compensation Model for Real Estate Brokers Obsolete?," Working papers 2006-23, University of Connecticut, Department of Economics.
    4. Bar-Isaac, Heski & Gavazza, Alessandro, 2013. "Brokers' contractual arrangements in the Manhattan residential rental market," MPRA Paper 43967, University Library of Munich, Germany.
    5. Jonathan Wiley & Justin Benefield & Marcus Allen, 2014. "Cyclical Determinants of Brokerage Commission Rates," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 196-219, January.
    6. Jonathan Wiley & Leonard Zumpano & Justin Benefield, 2011. "The Limited-Service Brokerage Decision: Theory and Evidence," The Journal of Real Estate Finance and Economics, Springer, vol. 43(3), pages 336-358, October.
    7. Donald Jud & Daniel T. Winkler, 1999. "A Model of Real Estate Sales as a Career Choice," Journal of Real Estate Research, American Real Estate Society, vol. 18(3), pages 481-490.
    8. Geoffrey Turnbull & Jonathan Dombrow, 2007. "Individual Agents, Firms, and the Real Estate Brokerage Process," The Journal of Real Estate Finance and Economics, Springer, vol. 35(1), pages 57-76, July.
    9. Hilde Patron & Kenneth Roskelley, 2008. "The Effect of Reputation and Competition on the Advice of Real Estate Agents," The Journal of Real Estate Finance and Economics, Springer, vol. 37(4), pages 387-399, November.
    10. Richard Martin & Henry Munneke, 2010. "Real Estate Brokerage Earnings: The Role of Choice of Compensation Scheme," The Journal of Real Estate Finance and Economics, Springer, vol. 41(4), pages 369-389, November.
    11. John D. Benjamin & Peter Chinloy & Donald Jud & Daniel T. Winkler, 2005. "Technology and Real Estate Brokerage Firm Financial Performance," Journal of Real Estate Research, American Real Estate Society, vol. 27(4), pages 409-426.
    12. G. Martin Izzo & Barry E. Langford, 2008. "Data analysis with ordinal and interval dependent variables: examples from a study of real estate salespeople," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 1, pages 103-116, December.
    13. Geoffrey Turnbull & Jonathan Dombrow, 2006. "Spatial Competition and Shopping Externalities: Evidence from the Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 32(4), pages 391-408, June.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:20:n:1:2000:p:5-30. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.