Is Dual Agency in Real Estate a Cause for Concern?
Posted: 4 Dec 2013
There are 2 versions of this paper
Is Dual Agency in Real Estate a Cause for Concern?
Date Written: December 3, 2013
Abstract
We examine the effects of the regulation of dual agency in residential real estate transactions, for 10,888 transactions in Long Island, New York in 2004-2007. We find that dual agency has an overall null effect on sale price, but includes two opposing forces where buyer and seller interests might be compromised. The link between dual agency and timing of sales is less clear. These findings are robust to endogeneity bias. Although it appears dual agency does cause some market distortions, our analysis yields little evidence that prohibiting dual agency in real estate will increase welfare.
Keywords: Conflict of interest; Real estate; Strategic pricing; Leaning on the seller; Time-to-sale
Suggested Citation: Suggested Citation
Vrinda Kadiyali
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Ithaca, NY 14853
United States
607-255-1985 (Phone)
607-254-4590 (Fax)
Jeffrey Prince (Contact Author)
Kelley School of Business, Indiana University ( email )
1309 E. Tenth Street
Kelley School of Business
Bloomington, IN 47405
United States
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47405 (Fax)
HOME PAGE: http://https://kelley.iu.edu/jeffprin/
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