Working Paper: CEPR ID: DP12587
Authors: Pieter A. Gautier; Arjen Siegmann; Aico van Vuuren
Abstract: Do higher real-estate agent fees imply better performance? This study uses anation-wide data set of residential real-estate transactions in the Netherlandsfrom 1985 to 2011 to provide evidence against this. Brokers with aflat fee structure who charge an up-front fee (which is substantially lower than theaverage fee of traditional brokers) and leave the viewings to the seller sellfaster and at -on average- 2.7 percent higher prices. We correct for fixedhouse- and time effects. We provide additional evidence that sellers who chosefor a flat fee broker were the ones who benefitted most from them.
Keywords: real estate brokers; broker incentives; housing agency
JEL Codes: D80; L10; L80; R20; R30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| flat-fee broker (L85) | transaction price (P22) |
| flat-fee broker (L85) | time to sell properties (R31) |
| transaction price (P22) | time to sell properties (R31) |
| flat-fee broker (L85) | higher prices and shorter selling times (R31) |