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Real-Estate Agent Commission Structure and Sales Performance

Author

Listed:
  • Pieter Gautier

    () (VU Amsterdam and Tinbergen Institute, The Netherlands)

  • Arjen Siegmann

    (VU Amsterdam, The Netherlands)

  • Aico van Vuuren

    () (University of Gothenburg)

Abstract

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.

Suggested Citation

  • Pieter Gautier & Arjen Siegmann & Aico van Vuuren, 2017. "Real-Estate Agent Commission Structure and Sales Performance," Tinbergen Institute Discussion Papers 17-049/VI, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20170049
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    References listed on IDEAS

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    More about this item

    Keywords

    real-estate brokers; broker incentives; housing; agency;

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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