Forthcoming JRER Paper
Intra-firm Real Estate Brokerage Compensation Choices and Agent Performance
Ken H. Johnson
Florida International University
Department of Finance and Real Estate
11200 SW 8th Street
Miami, FL 33199
Email: ken.johnson@fiu.edu |
Leonard V. Zumpano
University of Alabama
Culverhouse College of Commerce and Business Administration
Department of Economics, Finance, and Legal Studies
Tuscaloosa, AL 35487
Email: lzumpano@cba.ua.edu |
Randy I. Anderson
University of Central Florida
Howard Phillips Eminent Scholar Chair
Orlando, FL 32816
Email: randerson@bus.ucf.edu |
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Abstract:
This paper seeks to empirically
determine whether more skilled and productive real estate
salespeople, identified as full-payout or 100% commission agents, have a
discernable, systematic effect on property selling price and its
marketing time. Two types of agents, 100%ers and split-commission agents
are identified and controlled for in hedonic pricing and duration models
in order to examine the relationship between incentives and agent
performance. The results reveal that 100% agents sell their listed
properties faster and at premiums. This paper may also help explain the
contradictory findings of earlier research.
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