Dual Agent Distortions in Real Estate Transactions

Real Estate Economics, Forthcoming

Posted: 31 Dec 2013

See all articles by Ken H. Johnson

Ken H. Johnson

Florida Atlantic University - Finance

Zhenguo (Len) Lin

Florida International University (FIU) - Hollo School of Real Estate

Xie Jia

Independent

Date Written: December 14, 2013

Abstract

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

Suggested Citation

Johnson, Ken H. and Lin, Zhenguo and Jia, Xie, Dual Agent Distortions in Real Estate Transactions (December 14, 2013). Real Estate Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2373358

Ken H. Johnson (Contact Author)

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

Zhenguo Lin

Florida International University (FIU) - Hollo School of Real Estate ( email )

Miami, FL 33199
United States
3057799248 (Phone)

Xie Jia

Independent ( email )

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
304
PlumX Metrics