Perceived transactions costs: an explanation of the real estate brokerage

Fabrice Larceneux (), Thomas Lefebvre and Arnaud Simon
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Fabrice Larceneux: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Arnaud Simon: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique

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Abstract: The objective of this research is to study the determinants of the use of intermediated solutions by homeowners. The theoretical perspective of perceived transaction costs provides a relevant framework for understanding the existence of this type of transaction in the real estate sector. From a survey, a large and novel database was collected : 3992 responses relating to effective completed transactions in the French Real Estate Market. A conceptual framework based on expected earnings tested empirically shows that five major reasons explain today the real estate brokerage. Three commercial arguments used by real estate agents to convince their owners entrust their mandates are explored as influencing the choice of the type of transaction via the mediation of the five perceived benefits.These results may be useful to brokers in order to improve their communication toward consumers both mentioning the perceived benefits and illustrating them with concrete commercial statements linked with them. Estate agents get new opportunities to transform their economic model, no longer basing their business solely on the informational advantage, but on a more general proposal of agency services that certain decision-makers perceive as useful.

Keywords: Coût de transaction; Intermédiation financière; Immobilier; Transaction costs; Brokers; C2C; Intermediation; Real Estate; Realtor (search for similar items in EconPapers)
Date: 2014-06
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Published in 21st Annual European Real Estate Society Conference - ERES 2014, Jun 2014, Bucarest, Romania

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01635038

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