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The Role of Commission Rates and Specialization in the Determination of Real Estate Agent Income

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  • Daniel Winkler
  • Donald Jud
  • Tony Wingler

Abstract

This paper explores the performance of residential real estate agents and the commission structure under which they operate. This study reveals the interrelationship among the number of properties sold by an agent, the dollar volume of sales, and real estate agent income. This research shows that the ability to generate listings is essential to generating higher levels of income in residential real estate sales. The listings become the platform from which agents leverage their human capital in the generation of income. However, the ability to generate listings is a skill related to experience, as well as to the firm and market environment.

Suggested Citation

  • Daniel Winkler & Donald Jud & Tony Wingler, 2007. "The Role of Commission Rates and Specialization in the Determination of Real Estate Agent Income," Journal of Housing Research, Taylor & Francis Journals, vol. 16(1), pages 19-31, January.
    • Handle: RePEc:taf:rjrhxx:v:16:y:2007:i:1:p:19-31
    DOI: 10.1080/10835547.2007.12091976
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