Listing Agent Signals: Does a Picture Paint a Thousand Words?

Utilizing signaling theory, this study examines the effectiveness of images and words to influence homebuyers to move from reading a property listing to deciding to see a property in person. We first compare real estate agents’ perceptions of terms commonly used in MLS records to those of potential...

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Bibliographic Details
Published in:The journal of real estate finance and economics 2019-11, Vol.59 (4), p.617-648
Main Authors: Luchtenberg, Kimberly F., Seiler, Michael J., Sun, Hua
Format: Article
Language:English
Subjects:
Between-subjects design
Consumer behavior
Economics
Economics and Finance
Empathy
Estate agents
Financial Services
Multiple listing services
Real estate
Real estate sales
Regional/Spatial Science
Signaling
Words
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Summary:Utilizing signaling theory, this study examines the effectiveness of images and words to influence homebuyers to move from reading a property listing to deciding to see a property in person. We first compare real estate agents’ perceptions of terms commonly used in MLS records to those of potential homebuyers and find that the signal being sent by agents is generally interpreted as intended. In the second stage, after controlling for demographics, real estate experience, and empathy, we find that using only positive words has a significantly higher impact on likelihood to visit a property than a high-quality picture and the type of home. These results are robust to both a between subjects and within subjects design framework.
ISSN:0895-5638
1573-045X
DOI:10.1007/s11146-018-9674-z