Residential Brokerage in Hot and Cold Markets

Posted: 29 May 2015

See all articles by Abdullah Yavas

Abdullah Yavas

University of Wisconsin - School of Business - Department of Real Estate and Urban Land Economics

Date Written: May 27, 2015

Abstract

Using a search-theoretical framework, we study how a home seller's choice of whether or not to use a broker depends on different market conditions. We analyze the role that the broker plays in the house-selling process by examining the expected time-to-transaction, the expected transaction price, and the value of the transaction. We show that a broker brings less value to the seller in hot markets than in cold markets.

Keywords: Residential brokerage; FSBO; Market tightness

JEL Classification: D85, L85, R32

Suggested Citation

Yavas, Abdullah, Residential Brokerage in Hot and Cold Markets (May 27, 2015). Journal of Real Estate Finance and Economics, Vol. 51, No. 1, 2015. Available at SSRN: https://ssrn.com/abstract=2611187

Abdullah Yavas (Contact Author)

University of Wisconsin - School of Business - Department of Real Estate and Urban Land Economics ( email )

School of Business
975 University Avenue
Madison, WI 53706
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
472
PlumX Metrics