Discussion paper
DP12587 Real-Estate Agent Commission Structure and Sales Performance
Do higher real-estate agent fees imply better performance? This study uses a
nation-wide data set of residential real-estate transactions in the Netherlands
from 1985 to 2011 to provide evidence against this. Brokers with a
flat fee structure who charge an up-front fee (which is substantially lower than the
average fee of traditional brokers) and leave the viewings to the seller sell
faster and at -on average- 2.7 percent higher prices. We correct for fixed
house- and time effects. We provide additional evidence that sellers who chose
for a flat fee broker were the ones who benefitted most from them.
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