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Cyclical Determinants of Brokerage Commission Rates

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  • Jonathan Wiley

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  • Justin Benefield

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  • Marcus Allen

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    Abstract

    This study evaluates the determinants of percentage commission rates in the residential brokerage industry. The model developed here predicts that market share of the brokerage firm, property selling difficulty, and prevailing market conditions influence commission rates. Empirical analysis using a sample of 14,891 condominium transactions from the Fort Lauderdale, Florida area provides support for the model’s predictions. Copyright Springer Science+Business Media, LLC 2014

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    File URL: http://hdl.handle.net/10.1007/s11146-012-9387-7
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    Bibliographic Info

    Article provided by Springer in its journal The Journal of Real Estate Finance and Economics.

    Volume (Year): 48 (2014)
    Issue (Month): 1 (January)
    Pages: 196-219

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    Handle: RePEc:kap:jrefec:v:48:y:2014:i:1:p:196-219

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    Web page: http://www.springerlink.com/link.asp?id=102945

    Related research

    Keywords: Real estate brokerage; Listing agreements; Commission rates;

    References

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