Who You Going to Call? Performance of Realtors and Non-realtors in a MLS Setting

Abstract

This study attempts to shed some light on the extent of non-realtor broker listings on the MLS and their resulting price and time-on-the markets effects. Using duration, probit and selling price models, this study empirically examines whether the REALTOR designation provides a signal of quality that is reflected in the price and time on the market for sellers. Results indicate that properties listed by non-realtors on the MLS setting sell at lower prices, take slightly longer to sell, and are less likely to sell than properties listed by REALTORs in a MLS setting. Working with a REALTOR in a MLS setting appears to be advantageous to the seller. Copyright Springer Science+Business Media, LLC 2007Residential brokerage, Principle-agent, Realtors,

Do Real Estate Brokers Add Value When Listing Services Are Unbundled?

“…As a result, that practice has become the subject of debate, litigation, and legislative action. Both the Federal Trade Commission and the Department of Justice 5 In a similar vein, Huang and Rutherford (2007) find that properties sold by realtors -that is, members of the National Association of Realtors -on the MLS sell for more (and more quickly) than those sold by agents without that designation. 6 The fee is generally in the range of $200 to $900.…”

Sex and Selling: Agent Gender and Bargaining Power in the Resale Housing Market

“…The third robustness test applies the Heckman (1979) selection model for selection bias by introducing the Inverse Mills Ratio (IMR) into the price model in order to adjust the conditional error terms to yield zero means. 5 This method represents a popular approach to dealing with selection issues include pricing and duration studies that exclude unsold properties (Gatzlaff and Haurin 1998;Wentland et al 2014;Munneke and Slade 2000), realtor versus non-realtor agents (Huang and Rutherford 2007), and owner-agent properties (Rutherford et al 2007). In this study, the possibility of selection bias arises in terms of the sex of the listing and/or selling agent choosing properties with particular characteristics and/or amenities.…”

Listing Specialization and Pricing Precision

“…The most recent analyses focusing on brokerage have generally-though not exclusively-followed this course of investigation. These works include, but are not limited to, Munneke and Yavas (2001); Rutherford et al (2005Rutherford et al ( , 2007; Levitt and Syverson (2005); Gardiner et al (2007); and Huang and Rutherford (2007). Munneke and Yavas (2001) provides an examination of the effects of agent compensation contract type, hypothesizing that agents more able to affect a match between buyers and sellers will self-select into a full-commission contract type.…”

“…Huang and Rutherford (2007) models the performance of REALTORS® and non-REALTORS® in the context of an MLS-dominated market; the authors suggest that REALTORS® negotiate higher final prices for their clients. Rutherford et al (2007) follows up the authors' 2005 study with a focus on condominiums.…”