Dual Agent Distortions in Real Estate Transactions
Real Estate Economics, Forthcoming
Posted: 31 Dec 2013
Date Written: December 14, 2013
This paper investigates price distortions in dual agent real estate transactions. Consistent with the literature, we find that dual agent has a null effect on sale price. However, dual agent distortions on sale price emerge after controlling for the ownership of the property. We find that dual agent is associated with a 6.35 percent price premium on agent owned properties, but a 25.10 percent price discount on government owned properties and a 5.14 percent discount on bank owned properties. In addition, market conditions also play an important role in such price distortions.
Keywords: Dual agent, real estate transactions, price distortion
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