IDEAS home Printed from https://ideas.repec.org/a/jre/issued/v23n1-22002p111-128.html
   My bibliography  Save this article

Difficult to Show Properties and Utility Maximizing Brokers

Author

Listed:
  • Bruce Gordon

    (University of North Alabama, Florence, AL 35632)

  • Sean P. Salter

    (University of Southern Mississippi, Hattiesburg, MS 39406)

  • Ken H. Johnson

    (Florida Atlantic University, Boca Raton, FL 33431)

Abstract

This article is the winner of the Real Estate and the Internet manuscript prize (sponsored by PricewaterhouseCoopers) presented at the American Real Estate Society Annual Meeting. Brokers have long believed that difficult to show properties sell at lower prices and take longer to sell. Where difficult to show properties are defined as those properties that present extraordinary difficulties for a broker in arranging or showing the listing to a particular buyer. Buyers’ recent access to online real estate applications may make the cost of avoiding these properties prohibitive to brokers. Employing a hedonic pricing model and duration modeling techniques, this study finds that property price and marketing time are not significantly affected for these properties. The results suggest that brokers possess limited market power.

Suggested Citation

  • Bruce Gordon & Sean P. Salter & Ken H. Johnson, 2002. "Difficult to Show Properties and Utility Maximizing Brokers," Journal of Real Estate Research, American Real Estate Society, vol. 23(1/2), pages 111-128.
    • Handle: RePEc:jre:issued:v:23:n:1/2:2002:p:111-128
    as

    Download full text from publisher

    File URL: http://pages.jh.edu/jrer/papers/pdf/past/vol23n0102/07.111_128.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    2. Frew, James R., 1987. "Multiple listing service participation in the real estate brokerage industry: Cooperation or competition?," Journal of Urban Economics, Elsevier, vol. 21(3), pages 272-286, May.
    3. Paul K. Asabere & Forrest E. Huffman & Seyed Mehdian, 1993. "Mispricing and Optimal Time on the Market," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 149-155.
    4. Ken H. Johnson & Sean P. Salter & Leonard V. Zumpano & Randy I. Anderson, 2001. "Exterior Insulation and Finish Systems: The Effect on Residential Housing Prices and Marketing Time," Journal of Real Estate Research, American Real Estate Society, vol. 22(3), pages 289-312.
    5. Bardhan, Ashok Deo & Jaffee, Dwight & Kroll, Cynthia, 2000. "The Internet, E-Commerce and the Real Estate Industry," Fisher Center for Real Estate & Urban Economics, Research Reports qt7jx4b9sb, Fisher Center for Real Estate & Urban Economics, UC Berkeley.
    6. Jerry T. Haag & Ronald C. Rutherford & Thomas A. Thomson, 2000. "Real Estate Agent Remarks: Help or Hype?," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 205-215.
    7. Shiawee X. Yang & Abdullah Yavas, 1995. "Bigger is not Better: Brokerage and Time on the Market," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 23-34.
    8. G. Donald Jud & Terry G. Seaks & Daniel T. Winkler, 1996. "Time on the Market: The Impact of Residential Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 447-458.
    9. Jacob Belkin & Donald J. Hempel & Dennis W. McLeavey, 1976. "An Empirical Study of Time on Market Using Multidimensional Segmentation of Housing Markets," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 4(2), pages 57-75, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kelley Cours Anderson & Julia Freybote & Kerry T. Manis, 2024. "The Impact of Virtual Marketing Strategies on the Price-TOM Relation," The Journal of Real Estate Finance and Economics, Springer, vol. 68(2), pages 218-234, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zumpano, Leonard V. & Johnson, Ken H. & Anderson, Randy I., 2003. "Internet use and real estate brokerage market intermediation," Journal of Housing Economics, Elsevier, vol. 12(2), pages 134-150, June.
    2. John D. Benjamin & G. Donald Jud & G. Stacy Sirmans, 2000. "What Do We Know About Real Estate Brokerage?," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 5-30.
    3. John D. Benjamin & G. Donald Jud & G. Stacy Sirmans, 2000. "Real Estate Brokerage and the Hosting Market: An Annotated Bibliography," Journal of Real Estate Research, American Real Estate Society, vol. 20(1), pages 217-278.
    4. G. Donald Jud & Terry G. Seaks & Daniel T. Winkler, 1996. "Time on the Market: The Impact of Residential Brokerage," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 447-458.
    5. Marcus Allen & Sheri Faircloth & Ronald Rutherford, 2005. "The Impact of Range Pricing on Marketing Time and Transaction Price: A Better Mousetrap for the Existing Home Market?," The Journal of Real Estate Finance and Economics, Springer, vol. 31(1), pages 71-82, August.
    6. Seow Eng Ong & Yen Ching Koh, 2000. "Time On-market and Price Trade-offs in High-rise Housing Sub-markets," Urban Studies, Urban Studies Journal Limited, vol. 37(11), pages 2057-2071, October.
    7. Ken H. Johnson & Sean P. Salter & Leonard V. Zumpano & Randy I. Anderson, 2001. "Exterior Insulation and Finish Systems: The Effect on Residential Housing Prices and Marketing Time," Journal of Real Estate Research, American Real Estate Society, vol. 22(3), pages 289-312.
    8. Rosane Hungria-Gunnelin, 2013. "Impact of Number of Bidders on Sale Price of Auctioned Condominium Apartments in Stockholm," International Real Estate Review, Global Social Science Institute, vol. 16(3), pages 274-295.
    9. Tatiana Cesaroni, 2022. "Average time to sell a property and credit conditions: Evidence from the Italian housing market survey," Bulletin of Economic Research, Wiley Blackwell, vol. 74(1), pages 49-68, January.
    10. Terrence Clauretie & Paul Thistle, 2007. "The Effect of Time-on-Market and Location on Search Costs and Anchoring: The Case of Single-Family Properties," The Journal of Real Estate Finance and Economics, Springer, vol. 35(2), pages 181-196, August.
    11. Marcus T. Allen & Justin D. Benefield & Ronald C. Rutherford, 2023. "Co-Listing Strategies: Better Transaction Outcomes?," The Journal of Real Estate Finance and Economics, Springer, vol. 67(3), pages 517-544, October.
    12. Bich Hong Nguyen Thi & Trong Hoai Nguyen & Thanh Hiep Truong, 2020. "The Role of Listing Price Strategies on the Probability of Selling a House: Evidence from Vietnam," Real Estate Management and Valuation, Sciendo, vol. 28(2), pages 63-75, June.
    13. David Koch & Gunther Maier, 2015. "The influence of estate agencies’ location and time on Internet," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 35(2), pages 147-171, October.
    14. Stanley McGreal & Paloma Taltavull de La Paz & Valerie Kupke & Peter Rossini & Paul Kershaw, 2016. "Measuring the influence of space and time effects on time on the market," Urban Studies, Urban Studies Journal Limited, vol. 53(13), pages 2867-2884, October.
    15. Oded Palmon & Ben J. Sopranzetti, 2017. "On the relationship between the number of a broker’s real estate listings and transaction outcomes," Review of Quantitative Finance and Accounting, Springer, vol. 49(1), pages 65-89, July.
    16. Rajiv Kalra & Kam C. Chan, 1994. "Censored Sample Bias, Macroeconomic Factors, and Time on Market of Residential Housing," Journal of Real Estate Research, American Real Estate Society, vol. 9(2), pages 253-262.
    17. Edward A. Baryla & Leonard V. Zumpano, 1995. "Buyer Search Duration in the Residential Real Estate Market: The Role of the Real Estate Agent," Journal of Real Estate Research, American Real Estate Society, vol. 10(1), pages 1-14.
    18. Sean Salter & Ken Johnson & Ernest King, 2010. "Listing Specialization and Pricing Precision," The Journal of Real Estate Finance and Economics, Springer, vol. 40(3), pages 245-259, April.
    19. Michaletz Vladimir B. & Artemenkov Andrey, 2018. "A Demand - and Supply- Side Constrained Model for Liquidation Value and Related Exposure Periods," Real Estate Management and Valuation, Sciendo, vol. 26(2), pages 48-59, June.
    20. Velma Zahirovic-Herbert & Karen Gibler, 2014. "Historic District Influence on House Prices and Marketing Duration," The Journal of Real Estate Finance and Economics, Springer, vol. 48(1), pages 112-131, January.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:23:n:1/2:2002:p:111-128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: JRER Graduate Assistant/Webmaster (email available below). General contact details of provider: http://www.aresnet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.