Abstract

http://ssrn.com/abstract=959693
 
 

Citations



 


 



Is the Compensation Model for Real Estate Brokers Obsolete?


Thomas J. Miceli


University of Connecticut - Department of Economics

Katherine A. Pancak


University of Connecticut - School of Business - Center for Real Estate and Urban Economic Studies

C. F. Sirmans


Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law


Journal of Real Estate Finance and Economics, Vol. 35, No. 1, 2007

Abstract:     
This study examines the traditional compensation model for real estate brokers under which both the listing and buyer brokers are paid by the seller based on a percentage of the property sales price. We argue that this model has not evolved to reflect contemporary legal agency relationships and technology-driven information availability. It therefore creates substantial transactional inefficiencies for buyers and sellers at both the matching and bargaining stages of a transaction. While there is evidence that market forces are pushing for a change in the status quo, there is also evidence that the brokerage industry is resisting this change by pursuing anti-competitive policies and laws. We explore the economics of the current and alternative compensation structures and suggest policy implications regarding anti-competitive behavior in the brokerage industry.

Keywords: agency, brokerage, multiple listings, percentage commission

Accepted Paper Series


Not Available For Download

Date posted: January 28, 2007  

Suggested Citation

Miceli, Thomas J. and Pancak, Katherine A. and Sirmans, C. F., Is the Compensation Model for Real Estate Brokers Obsolete?. Journal of Real Estate Finance and Economics, Vol. 35, No. 1, 2007. Available at SSRN: http://ssrn.com/abstract=959693

Contact Information

Thomas J. Miceli (Contact Author)
University of Connecticut - Department of Economics ( email )
341 Mansfield Road
Storrs, CT 06269
United States
860-486-5810 (Phone)
860-486-4463 (Fax)
Katherine A. Pancak
University of Connecticut - School of Business - Center for Real Estate and Urban Economic Studies ( email )
368 Fairfield Road
Storrs, CT 06269
United States
860-486-1275 (Phone)
860-486-0349 (Fax)
C. F. Sirmans
Florida State University - Department of Risk Management, Insurance, Real Estate & Business Law ( email )
Tallahasse, FL 32306
United States
850 644-4076 (Phone)
HOME PAGE: http://www.cob.fsu.edu/rmi

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