Authors: Joachim Zietz and Bobby Newsome

Start Page: 165
End Page: 192
Volume: 24
Issue Number: 02
Year: 2002
Publication: Journal of Real Estate Research

Abstract: Multiple Listing Service data are employed to examine how the type of agency representation influences the sale price of a residential property. The results differ by property size. The type of agency representation is relevant only for some segments of the market, mainly smaller- to medium-sized properties. For a certain range of property sizes, buyers who engage a buyer?s agent pay on average 2% less. However, an above average buyer?s agent commission can more than cancel this price effect. Buyers that engage a buyer?s agent that comes from the same firm as the listing agent never pay more for a house.