The Impacts of Contract Type on Broker Performance: Submarket Effects

R.C. Rutherford (), T.M. Springer () and Abdullah Yavas ()
Additional contact information
R.C. Rutherford: DEPARTMENT OF FINANCE, UNIVERSITY OF TX - SAN ANTONIO, 6900 N LOOP, 1604 W SAN ANTONIO, TX
T.M. Springer: DEPT OF INDUSTRY STUDIES, FLORIDA ATLANTIC UNIVERSITY, 5353 PARKSIDE DR, JUPITER, FL

Journal of Real Estate Research, 2004, vol. 26, issue 3, pages 277-298

Abstract: Rutherford et al. (2001) develop and empirically test a model that analyzes the effect the type of listing contract, either exclusive agency (EA) or exclusive right to sell (ERTS), has on the performance of the agent/broker. This paper extends the work of Rutherford et al. (2001) and looks at differences between housing submarkets delineated by price. The results show a selling price discount associated with both broker-effected and owner-effected sales for lower-priced houses with EA contracts. For higher-priced houses, there is no price advantage to an EA-listing if the broker achieves the sale, but if the owner sells the house, there is a modest price premium associated with the sale. The primary implication of the results is that owners of lower-priced houses should be wary of alternative listing arrangements, namely exclusive agency contracts.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 2004
View list of references View citations in EconPapers

Downloads: (external link)
http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol26n03/03.277_298.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:26:n:3:2004:p:277-298

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 ().