Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2017-05-31
Number: 17-049/VI
Author-Name: Pieter Gautier
Author-Email: p.a.gautier@vu.nl
Author-Workplace-Name: VU Amsterdam and Tinbergen Institute, The Netherlands
Author-Name: Arjen Siegmann
Author-Email: a.h.siegmannvu.nl
Author-Workplace-Name: VU Amsterdam, The Netherlands
Author-Name: Aico van Vuuren
Author-Email: aico.van.vuuren@economics.gu.se
Author-Workplace-Name: University of Gothenburg
Title: Real-Estate Agent Commission Structure and Sales Performance
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.
Classification-JEL: D80, L10, L80, R20, R30
Keywords: real-estate brokers, broker incentives, housing, agency
File-Url: https://papers.tinbergen.nl/17049.pdf
File-Format: application/pdf
File-Size: 2205074 bytes
Handle: RePEc:tin:wpaper:20170049