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Real Estate Brokers: Do they inflate housing prices?

Author

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  • Arnaud Simon

    (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique)

Abstract

This study examines the impact of real estate brokers on the price of residential properties sold in 2005 in twelve French cities. The results indicate that brokers increase the prices of properties they sell even though they appear to have heterogeneous behaviours across cities. The impact of brokers also varies by property size and age of clients. One and two room apartments have higher selling prices when sold through brokers. Buyers in their thirties and forties who seek the assistance of brokers pay more for their homes whereas older sellers obtain higher prices from broker intermediation.

Suggested Citation

  • Arnaud Simon, 2011. "Real Estate Brokers: Do they inflate housing prices?," Post-Print halshs-00197852, HAL.
    • Handle: RePEc:hal:journl:halshs-00197852
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00197852
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    Keywords

    residential real estate market; broker intermediation; brokers' effect on price;
    All these keywords.

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