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Real-Estate Agent Commission Structure and Sales Performance

Listed author(s):
  • Pieter Gautier

    ()

    (VU Amsterdam and Tinbergen Institute, The Netherlands)

  • Arjen Siegmann

    (VU Amsterdam, The Netherlands)

  • Aico van Vuuren

    ()

    (University of Gothenburg)

Do higher real-estate agent fees imply better performance? This study uses a nation-wide data set of residential real-estate transactions in the Netherlands from 1985 to 2011 to provide evidence against this. Brokers with a flat-fee structure who charge an up-front fee (which is substantially lower than the average fee of traditional brokers) and leave the viewings to the seller sell faster and at - on average - 2.7 percent higher prices. We correct for fixed house- and time effects. We provide additional evidence that the price dfference is not due to a seller-selection effect.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 17-049/VI.

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Date of creation: 31 May 2017
Handle: RePEc:tin:wpaper:20170049
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  1. Lawrence J. White, 2006. "The Residential Real Estate Brokerage Industry: What Would More Vigorous Competition Look Like?," Working Papers 06-06, New York University, Leonard N. Stern School of Business, Department of Economics.
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  18. repec:reg:rpubli:363 is not listed on IDEAS
  19. Ronald Rutherford & Abdullah Yavas, 2012. "Discount Brokerage in Residential Real Estate Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 40(3), pages 508-535, September.
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