Residential Brokerage in Hot and Cold Markets

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, an...

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Bibliographic Details
Published in:	The journal of real estate finance and economics Vol. 51; no. 1; pp. 1 - 21
Main Authors:	Li, Ying, Yavas, Abdullah
Format:	Journal Article
Language:	English
Published:	New York Springer US 01-07-2015 Springer Nature B.V
Subjects:	Analysis Brokers Cold Consumer behavior Economic theory Economics Economics and Finance Financial Services Home Houses Housing prices Multiple listing services Real estate Real estate agents & brokers Real estate market Regional/Spatial Science Residential areas Residential buildings Sales Studies Transaction costs Value United States > US R32 L85 FSBO Market tightness Residential brokerage D83
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Summary:	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.
Bibliography:	ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23
ISSN:	0895-5638 1573-045X
DOI:	10.1007/s11146-014-9472-1