Costs and Pricing of Home Brokerage Services

Michael Carney

Real Estate Economics, 1982, vol. 10, issue 3, 331-354

Abstract: This paper explores a simple economic search model, and various brokerage cost assumptions, to derive brokerage pricing implications for three dimensions of the home transaction: (1) level of home price, (2) new relative to existing home sales, and (3) co‐op relative to non‐co‐op sales. The model incorporates time‐on‐market (the price‐time tradeoff) as an important element in home brokerage (search) It is argued that relative search cost differences imply that commission rates will be lower (1) on sales of higher‐priced homes, (2) on sales of new relative to existing homes and (3) on non‐co‐op relative to co‐op sales. A main contribution of the paper is the presentation of considerable supporting evidence showing variation in actual home brokerage commission rates according to these three variables.

Date: 1982
References: View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://doi.org/10.1111/1540-6229.00269

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: https://EconPapers.repec.org/RePEc:bla:reesec:v:10:y:1982:i:3:p:331-354

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1080-8620

Access Statistics for this article

Real Estate Economics is currently edited by Crocker Liu, N. Edward Coulson and Walter Torous

More articles in Real Estate Economics from American Real Estate and Urban Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().