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Buyers' and sellers' agents in the housing market

✍ Scribed by Mark Bagnoli; Naveen Khanna

Publisher
Springer US
Year
1991
Tongue
English
Weight
630 KB
Volume
4
Category
Article
ISSN
0895-5638

No coin nor oath required. For personal study only.

✦ Synopsis

We explain why buyers in the housing market use an agent employed by the seller. Such agents reduce buyers' search costs so that more buyers search a particular house. This increases the probability of the sale of the house and possibly also its selling price. However, since the selling price increases, if at all, by less than the fee paid by the seller to the agent, both buyers and sellers are better off. We identify two characteristics that give rise to sellers' agents and show that markets that do not have such agents are missing at least one of these characteristics.

πŸ“œ SIMILAR VOLUMES

Buyers' and sellers' markets: A simple r
Buyers' and sellers' markets: A simple rational expectations search model of the housing market
✍ Thomas S. Zorn; William H. Sackley πŸ“‚ Article πŸ“… 1991 πŸ› Springer US 🌐 English βš– 617 KB

The terms buyers "market and sellers' market are commonly used in contexts that most economists would characterize as excess supply and excess demand. It is puzzling, however, that in many instances the press and general public are all aware that it is a buyers' or sellers' market. Are these markets