Abstract

http://ssrn.com/abstract=1012814
 
 

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The Relative Performance of Real Estate Marketing Platforms: Mls Versus Fsbomadison.Com


Igal Hendel


Northwestern University - Department of Economics; National Bureau of Economic Research (NBER)

Aviv Nevo


Northwestern University - Department of Economics; National Bureau of Economic Research (NBER)

Francois Ortalo-Magne


Wisconsin School of Business; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

September 2007

NBER Working Paper No. w13360

Abstract:     
We compare outcomes obtained by sellers who listed their home on a newly developed For-Sale-By-Owner (FSBO) web site versus those who used an agent and the Multiple Listing Service (MLS). We do not find support for the hypothesis that listing on the MLS helps sellers obtain a significantly higher sale price. Listing on the MLS shortens the time it takes to sell a house. The diffusion of the new FSBO platform was quick, with the market share stabilizing after 2 years, suggesting it managed to gain a critical mass necessary to compete with the MLS. However, the lower effectiveness of FSBO (in terms of time to sell and probability of a sale) suggests that the increasing returns to network size are not fully exploited at its current size. We discuss the welfare implications of our findings.

Number of Pages in PDF File: 38

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Date posted: September 10, 2007  

Suggested Citation

Hendel, Igal and Nevo, Aviv and Ortalo-Magne, Francois, The Relative Performance of Real Estate Marketing Platforms: Mls Versus Fsbomadison.Com (September 2007). NBER Working Paper No. w13360. Available at SSRN: http://ssrn.com/abstract=1012814

Contact Information

Igal E. Hendel (Contact Author)
Northwestern University - Department of Economics ( email )
2003 Sheridan Road
Evanston, IL 60208
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Aviv Nevo
Northwestern University - Department of Economics ( email )
2003 Sheridan Road
Evanston, IL 60208
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Francois Ortalo-Magne
Wisconsin School of Business ( email )
4300 Grainger Hall
975 University Avenue
Madison, WI 53706-1323
United States
608-262-7867 (Phone)
608-262-7867 (Fax)
HOME PAGE: http://francois.marginalq.com
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
HOME PAGE: http://www.CESifo.de
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