What added value do Estate Agents offer compared to FSBO transaction? Explanation from a perceived advantages model

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
Thomas Lefebvre: 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: This paper aims at explaining the determinants of using an estate agent vs. conducting a private sale on the French housing market. From a survey that collected 4,142 responses relating to effective completed transactions, the results show that the decision of whether to use an estate agent is not explained by the physical or spatial features of the property or socio-demographic variables. But by buyers' and sellers' heterogeneous perceptions of whether it is worthwhile to use estate agents, of how far they feel themselves having market expertise, and their wish to complete quickly. Five perceived transaction costs explain why buyers and sellers use brokerage intermediation, in a consumer's standpoint.

Keywords: FBSO; real estate housing; time pressure; perceived advantages; market expertise; transaction cost; residential property market; intermediation (search for similar items in EconPapers)
Date: 2015
Note: View the original document on HAL open archive server: https://hal.science/hal-01635048v1
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Citations: View citations in EconPapers (2)

Published in Journal of Housing Economics, 2015, 29, ⟨10.1016/j.jhe.2015.06.002⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01635048

DOI: 10.1016/j.jhe.2015.06.002

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