The Impacts of Contract Type on Broker Performance: Submarket Effects

R.C. Rutherford (), T.M. Springer () and Abdullah Yavas ()
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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, 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
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Citations: View citations in EconPapers (6)

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