Cyclical Determinants of Brokerage Commission Rates

This study evaluates the determinants of percentage commission rates in the residential brokerage industry. The model developed here predicts that market share of the brokerage firm, property selling difficulty, and prevailing market conditions influence commission rates. Empirical analysis using a...

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Bibliographic Details
Published in:The journal of real estate finance and economics 2014, Vol.48 (1), p.196-219
Main Authors: Wiley, Jonathan A., Benefield, Justin D., Allen, Marcus T.
Format: Article
Language:English
Subjects:
Agreements
Business models
Commissions
Compensation
Discount brokers
Economics
Economics and Finance
Evaluation
Expected values
Financial Services
Forecasts
Market analysis
Marketing
Multiple listing services
Opportunity costs
Present value
Real estate
Real estate agents & brokers
Regional/Spatial Science
Residential areas
Studies
Transaction costs
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Description
Summary:This study evaluates the determinants of percentage commission rates in the residential brokerage industry. The model developed here predicts that market share of the brokerage firm, property selling difficulty, and prevailing market conditions influence commission rates. Empirical analysis using a sample of 14,891 condominium transactions from the Fort Lauderdale, Florida area provides support for the model’s predictions.
ISSN:0895-5638
1573-045X
DOI:10.1007/s11146-012-9387-7