The Impact of Real Estate Agents on House Prices Near Environmental Disamenities
Posted: 14 Apr 2010
Date Written: April 13, 2010
The purpose of this paper is to determine the impact of real estate agents on the price of houses that are located close to an environmental disamenity. Our main hypothesis is that real estate agents obtain higher prices than those theoretically expected when the houses are located closer to an environmental disamenity. We attribute this result to agents’ ability to effectively match potential buyers to house sellers as well as their influence on bargaining power. Estimates from a sample selection corrected hedonic model suggest that the percentage increase in the house price obtained by a real estate agent is greater than the commission rate.
Keywords: hedonic price model, prices, real estate agent, environmental economics
JEL Classification: R00
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