Understanding in-house transactions in the real estate brokerage industry.

About 20% of residential real estate transactions in North America are in-house transactions, for which buyers and sellers are represented by the same brokerage. We examine to what extent in-house transactions are explained by agents' strategic incentives as opposed to matching efficiency. Using hom...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 47; no. 4; pp. 1057 - 1087
Autores principales: Han, Lu, Hong, Seung ‐ Hyun
Formato: Artículo
Publicado: Wiley-Blackwell Winter2016
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Understanding in-house transactions in the real estate brokerage industry.
      aug:
        au:
          Han, Lu
          Hong, Seung ‐ Hyun
        affil:
          University of Toronto
          University of Illinois
      su:
        In-house services (Business)
        Real estate agents
        Real estate business
        Residential real estate
        Labor incentives
        Strategic planning
      sug:
        subj:
          Offices of Real Estate Agents and Brokers
          Offices of real estate brokers
          Real estate agents
          Other Activities Related to Real Estate
          Lessors of Residential Buildings and Dwellings
          Residential Property Managers
          In-house services (Business)
          Real estate agents
          Real estate business
          Residential real estate
          Labor incentives
          Strategic planning
      ab: About 20% of residential real estate transactions in North America are in-house transactions, for which buyers and sellers are represented by the same brokerage. We examine to what extent in-house transactions are explained by agents' strategic incentives as opposed to matching efficiency. Using home transaction data, we find that agents are more likely to promote internal listings when they are financially rewarded and such effect becomes weaker when consumers are more aware of agents' incentives. We further develop a structural model and find that about one third of in-house transactions are explained by agents' strategic promotion, causing significant utility loss for home buyers.
      pubtype: Academic Journal
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      src: R
    language: English
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