Real-Estate Agent Commission Structure and Sales Performance

37 Pages Posted: 28 May 2017

See all articles by Pieter A. Gautier

Pieter A. Gautier

Free University of Amsterdam; Tinbergen Institute Amsterdam (TIA); IZA Institute of Labor Economics

Arjen Siegmann

VU University Amsterdam

Aico van Vuuren

Department of Economics, Gothenburg University

Multiple version iconThere are 3 versions of this paper

Date Written: February 2017

Abstract

We estimate the effect of broker characteristics on sales performance on a large dataset of residential real estate transactions in the Netherlands from 1985 to 2011. Using house fixed-effects, we find that large brokers, brokers who are close by, and brokers on a fixed-price commission, sell faster. Experienced brokers sell slightly slower, but at marginally better prices. Brokers with a fixed-price commission structure sell faster, at better prices. With neighborhood fixed-effects instead of house fixed-effects, broker effects become more pronounced, suggesting that brokers' location is not random, but related to the intra-neighborhood housing market. The effects are robust to different econometric specifications and corrections for selection effects.

Keywords: real-estate brokers, broker incentives, housing, agency

JEL Classification: D80, L10, L80, R20, R30

Suggested Citation

Gautier, Pieter A. and Siegmann, Arjen and van Vuuren, Aico, Real-Estate Agent Commission Structure and Sales Performance (February 2017). Available at SSRN: https://ssrn.com/abstract=2975432 or http://dx.doi.org/10.2139/ssrn.2975432

Pieter A. Gautier

Free University of Amsterdam ( email )

Amsterdam, ND North Holland
Netherlands

Tinbergen Institute Amsterdam (TIA) ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Arjen Siegmann

VU University Amsterdam ( email )

De Boelelaan 1105
Dept. of Finance
Amsterdam, NOT IN US OR CANADA 1081 HV
Netherlands
+31205986581 (Phone)

HOME PAGE: http://personal.vu.nl/a.h.siegmann

Aico Van Vuuren (Contact Author)

Department of Economics, Gothenburg University ( email )

Sweden

HOME PAGE: http://https://sites.google.com/site/aicovanvuurenshomepage/

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