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| A Note on Buyer's Agent Commision and
Sales Price Author: Joachim Zietz, Bobby Newsome Start Page: 245 Abstract: The article examines
whether and to what extent the level of a buyer’s agent commission will affect the
sale price of a house. The estimation results suggest that a higher commission rate leads
to a higher sale price, although only for lower-priced houses. It is suggested that, at
least for this market segment, there may be a principal-agent problem: buyer’s agents
do not act in the best interest of their clients because of the institutional structure of
sales commissions. |
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