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What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model

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  • Larceneux, Fabrice
  • Lefebvre, Thomas
  • Simon, Arnaud

Abstract

This paper aims to explain the determinants of using an estate agent vs. conducting a private sale on the French housing market. A survey that collected 3992 responses relating to completed transactions showed that the decision of whether or not to use an estate agent is not explained by the physical or spatial features of the property or socio-demographic variables, but rather by buyers’ and sellers’ perceptions, i.e. perceived advantages of brokerage services in terms of expected relevant outcome, efficient process, psychological security and social facilitation. These results may help brokers to differentiate from FSBO in a context of freely-available information.

Suggested Citation

  • Larceneux, Fabrice & Lefebvre, Thomas & Simon, Arnaud, 2015. "What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model," Journal of Housing Economics, Elsevier, vol. 29(C), pages 72-82.
    • Handle: RePEc:eee:jhouse:v:29:y:2015:i:c:p:72-82
    DOI: 10.1016/j.jhe.2015.06.002
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    References listed on IDEAS

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    Cited by:

    1. Fabrice Larceneux & Thomas Lefebvre, 2016. "The " Bad Deal " Illusion," Post-Print halshs-01671084, HAL.
    2. Fabrice Larceneux & Denis Guiot, 2019. "The role of services in homebuyers’ attitudes: A field experiment in the French off-plan housing market," Urban Studies, Urban Studies Journal Limited, vol. 56(14), pages 2880-2896, November.

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    More about this item

    Keywords

    Services brokerage; FSBO; Residential property market; Intermediation; Market expertise; Time pressure;
    All these keywords.

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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