Effects of Real Estate Brokers’ Marketing Strategies: Public Open Houses, Broker Open Houses, MLS Virtual Tours, and MLS Photographs

The existence of the real estate brokerage industry is generally attributed to high transaction costs in real estate markets. Brokers are typically expected to market sellers’ properties, assist in contract negotiations, and coordinate the post-contract tasks necessary to close transactions. Presuma...

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Bibliographic Details
Published in:The Journal of real estate research 2015-07, Vol.37 (3), p.343-370
Main Authors: Allen, Marcus T., Cadena, Anjelita, Rutherford, Jessica, Rutherford, Ronald C.
Format: Article
Language:English
Subjects:
Brokerages
Brokers
Coefficients
Commercial real estate
Contract negotiations
Houses
Housing prices
Market prices
Market strategy
Marketing
Marketing strategies
Multiple listing service
Multiple listing services
Open houses
Pricing strategies
Real estate agents & brokers
Sales representatives
Studies
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Summary:The existence of the real estate brokerage industry is generally attributed to high transaction costs in real estate markets. Brokers are typically expected to market sellers’ properties, assist in contract negotiations, and coordinate the post-contract tasks necessary to close transactions. Presumably, brokers can perform these duties at lower cost than sellers. In addition to cost efficiencies, brokers may also impact market outcomes. Numerous researchers have investigated whether or not the use of brokers as well as various broker actions, broker characteristics, and broker/seller legal relationships affect market outcomes in the form of price and/or, time-on-the-market effects. We extend this line of research by considering price, time-on-market, and probability of sale effects in relation to four specific broker strategies: public open houses, broker open houses, MLS virtual tours, and MLS photographs. The results indicate positive relationships between these strategies and house prices and mixed relationships between these strategies and probability of sale and time-on-market.
ISSN:0896-5803
2691-1175
DOI:10.1080/10835547.2015.12091422