Dual Agent Distortions in Real Estate Transactions. (29th March 2015)

• Record Type: Journal Article
• Authors: Johnson, Ken H.; Lin, Zhenguo; Xie, Jia
• Is Part Of: Real estate economics. Volume 43:Number 2(2015:Summer)
• Page Start: 507
• Page End: 536
• Publication Date: 2015-03-29
• Subjects: Real estate business -- United States -- Periodicals; Urban economics -- Periodicals; 333.33097
• DOI: 10.1111/1540-6229.12073
• Languages: English
• ISSNs: 1080-8620

Abstract

<abstract abstract-type="main"> <title> <x xml:space="preserve">Abstract</x> </title> <p>This article investigates price distortions in dual agent real estate transactions. Consistent with the literature, we find that, on average, dual agent has a null effect on sale price. However, dual agent distortions on sale price emerge after controlling for the ownership of the property. Dual agent is associated with a 6.35% price premium on agent‐owned properties, but a 25.10% price discount on government‐owned properties and a 5.14% discount on bank‐owned properties. In addition, market conditions also play an important role in such price distortions.</p> </abstract>