International Real Estate Review

Abstract

It is commonly understood that residential real estate brokerage fees in the US tend to run 6% or 7% within local markets for existing property resales. Exceptions to these historically uniform going rates are starting to appear, and utilization of the internet will provide new efficiencies that should lead to lower commission rates in the future. One possible indication of where the long term commission rates may head, should price competition increase, is provided by a review of commission rates around the world. This study is a first attempt to gather such data and begin the process of global comparisons. Most industrialized country brokerage rates are significantly below those of the US, although there are clearly differences in the services provided, red tape, and liabilities, as well as information access. An exploratory model attempts to explain variations in fees around the world and deepen our understanding of possible equilibriums for US firms should price competition increase.

The middleman dilemma: exploring the relationship between formal ethics and ethics in practice among real estate agents in Sweden

“…For further information on these different systems, we refer to Lindqvist (2008) who analyze transaction costs for single-family houses in an international comparison and illustrate regulations and market models in Sweden, Finland, Norway, Poland, England and the US. Jingryd (2013) compares the Latin market model to the agent model, and Delcoure and Miller (2002) compare real estate agency in the US with that in other countries. Engstrom et al (2023) give a comparison of the professional development in Sweden and in Victoria, Australia.…”