The Effect of Different Brokerage Modes on Closing Costs and House Prices

Roy T. Black and Hugh O. Nourse
Additional contact information
Roy T. Black: Department of Finance Georgia State University PO Box 4020 Atlanta, Georgia 30302-4020, http://www.sbpm.gwu.edu/depts/fin/default.htm
Hugh O. Nourse: Department of Insurance, Legal Studies, Real Estate and Management Science Terry College of Business The University of Georgia Athens, Georgia 30602, http://www.bus.olemiss.edu/

Journal of Real Estate Research, 1995, vol. 10, issue 1, pages 87-98

Abstract: This study examines the effect of two different modes of real estate broker behavior on both the cash charges paid at closing and the price of houses. The mode of brokers representing only sellers is contrasted with one in which brokers represent buyers. Popular literature and formal studies are reviewed to illustrate the problems inherent in real estate brokers' representation of buyers and sellers. The role of the real estate broker is examined as a provider of information as well as that of a market maker. Two hypotheses are tested: there is no difference to the buyer in shifting cash charges at closing, and there is no difference in house prices attributable to the representational form of real estate brokerage. The study utilizes data on eighty single-family residential sales between January 1989 and August 1990 in north suburban Atlanta, Georgia to test these hypotheses.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1995
View list of references View citations in EconPapers

Downloads: (external link)
http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol10n01/v10p087.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:jre:issued:v:10:n:1:1995:p:87-98

Ordering information: This journal article can be ordered from
Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323
http://aux.zicklin.b ... u/jrer/about/get.htm

Access Statistics for this article

Journal of Real Estate Research is edited by Dr. Ko Wang

More articles in Journal of Real Estate Research from American Real Estate Society
Address: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
Series data maintained by JRER Graduate Assistant/Webmaster ().