Real Estate Brokers: Do they inflate housing prices?

Real Estate Brokers: Do they inflate housing prices?

[SHS:ECO] Humanities and Social Sciences/Economy and finances

residential real estate market

broker intermediation

brokers' effect on price

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.

Simon, Arnaud

Bankers, markets and investors

2011

ENG

article in peer-reviewed journal

http://halshs.archives-ouvertes.fr/halshs-00197852

http://halshs.archives-ouvertes.fr/docs/00/19/78/52/PDF/REBIHP.pdf