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The Effects of Time Constraints on Broker Behavior in China¡¦s Resale Housing Market: Theory and Evidence

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Listed:
  • Yang Zhang

    (Beijing Forestry University)

  • Hong Zhang

    (Tsinghua University)

  • Michael J. Seiler

    (The College of William & Mary)

Abstract

This study examines the effects of time pressure on residential real estate broker behavior. Consistent with our intuition, we find that when under a binding time constraint, brokers do transact the property more quickly, but do not work as hard and ultimately recommend less optimal homes. Interestingly, brokers earn the same commission when operating in either a low or high time pressure environment. When the characteristics of the broker are considered, we find that experienced brokers are significantly more effective at matching buyers and sellers under time constrained conditions.

Suggested Citation

  • Yang Zhang & Hong Zhang & Michael J. Seiler, 2016. "The Effects of Time Constraints on Broker Behavior in China¡¦s Resale Housing Market: Theory and Evidence," International Real Estate Review, Global Social Science Institute, vol. 19(3), pages 353-370.
    • Handle: RePEc:ire:issued:v:19:n:03:2016:p:353-370
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    References listed on IDEAS

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    More about this item

    Keywords

    China; Search Duration; Time Constraints; Residential Real Estate;
    All these keywords.

    JEL classification:

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

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