Individual Agents, Firms, and the Real Estate Brokerage Process

Posted: 30 Jan 2007

See all articles by Geoffrey K. Turnbull

Geoffrey K. Turnbull

Georgia State University - Department of Economics

Jonathan F. Dombrow

DePaul University - Department of Finance

Abstract

This study examines how individual agents affect house selling prices and time on the market while controlling for brokerage firm-specific effects as well as supply and demand conditions that vary by neighborhood. Firm size effects disappear once firm specialization and agent characteristics are taken into account but geographic concentration by firms leads to higher selling prices. For individual agents, neither sex nor selling own listings affects price or selling time, but there are gains from partnering transactions across firms. Agents who specialize in listing properties obtain higher prices for their sellers while those who specialize in selling obtain lower prices for their buyers. Houses nearer to other transactions of an agent sell for higher prices. Finally, greater scale of listing and selling activity by an agent tends to lower selling price or lengthen the time on the market.

Keywords: real estate agents, brokers, brokerage, housing

JEL Classification: G24, R21, R31

Suggested Citation

Turnbull, Geoffrey K. and Dombrow, Jonathan F., Individual Agents, Firms, and the Real Estate Brokerage Process. Journal of Real Estate Finance and Economics, Vol. 35, No. 1, 2007, Available at SSRN: https://ssrn.com/abstract=960099

Geoffrey K. Turnbull (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-0419 (Phone)
404-651-2737 (Fax)

Jonathan F. Dombrow

DePaul University - Department of Finance ( email )

1 East Jackson Blvd.
Chicago, IL 60604-2287
United States

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