A Note on Buyer's Agent Commision and Sales Price

Joachim Zietz () and Bobby Newsome ()
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Bobby Newsome: Morehead State University, Morehead, KY

Journal of Real Estate Research, 2001, vol. 21, issue 3, pages 245-254

Abstract: The article examines whether and to what extent the level of a buyer’s agent commission will affect the sale price of a house. The estimation results suggest that a higher commission rate leads to a higher sale price, although only for lower-priced houses. It is suggested that, at least for this market segment, there may be a principal-agent problem: buyer’s agents do not act in the best interest of their clients because of the institutional structure of sales commissions.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2001
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