IDEAS home Printed from https://ideas.repec.org/a/taf/rjrhxx/v30y2021i2p175-206.html
   My bibliography  Save this article

Saving Real Estate Commissions at Any Price: Does Having a Real Estate Agent Influence the Sales Price of a Home?

Author

Listed:
  • Norm Miller
  • Alison Sanchez
  • Michael Sklarz
  • Adriana Vamosiu

Abstract

We examine the price differentials for homes sold through traditional agents compared to For-Sale-By-Owner (FSBO) sales for two geographic markets with data from January 2016 to July 2017. While revealing that the “MLS premium” no longer exists, we find that FSBOs sell for significantly lower prices than comparable home sales sold by agents and for prices below the average differential represented by the commission rate (6%), even after accounting for endogeneity of the FSBO variable. We find that the magnitude of the effect varies by geographic market as well as type of home. Our results have implications for assessing the value of a real estate agent when determining sales commissions.

Suggested Citation

  • Norm Miller & Alison Sanchez & Michael Sklarz & Adriana Vamosiu, 2021. "Saving Real Estate Commissions at Any Price: Does Having a Real Estate Agent Influence the Sales Price of a Home?," Journal of Housing Research, Taylor & Francis Journals, vol. 30(2), pages 175-206, November.
    • Handle: RePEc:taf:rjrhxx:v:30:y:2021:i:2:p:175-206
    DOI: 10.1080/10527001.2021.1984756
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10527001.2021.1984756
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10527001.2021.1984756?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    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:taf:rjrhxx:v:30:y:2021:i:2:p:175-206. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rjrh20 .

    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.