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Buyer Brokers: Do They Make a Difference? Their Influence on Selling Price and Search Duration
Author(s) -
Elder Harold W.,
Zumpano Leonard V.,
Baryla Edward A.
Publication year - 2000
Publication title -
real estate economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.064
H-Index - 61
eISSN - 1540-6229
pISSN - 1080-8620
DOI - 10.1111/1540-6229.00804
Subject(s) - duration (music) , real estate , intermediation , business , principal (computer security) , representation (politics) , residential real estate , marketing , microeconomics , process (computing) , economics , finance , computer science , art , literature , politics , political science , law , operating system
This study focuses on the role of buyer brokers in the home‐buying process by examining the effects of brokerage representation on home selling prices and search duration. The results of this study indicate that real estate brokers, no matter the type, have no independent effect on home prices. The principal effect of broker intermediation is a reduction in buyer search time, compared to for‐sale‐by‐owner transactions. The most important finding, however, is that buyer agents are more effective at reducing search time for their clients than more traditional seller agents or non‐agent facilitators.