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Article
"Dual Agent Distortions in Real Estate Transactions"
Real Estate Economics (2015)
  • Ken Johnson, Florida International University
  • Zhenguo Lin, California State University, Fullerton
  • Jia Xie, Bank of Canada
Abstract
This paper investigates price distortions in dual agent real estate transactions. Consistent with the literature, we find that 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. We find that dual agent is associated with a 7.19 percent price premium on agent owned properties, but a 13.06 percent price discount on government owned properties and a 7.04 percent discount on bank owned properties. In addition, market conditions also play an important role in such price distortions.
Disciplines
Publication Date
2015
Citation Information
Ken Johnson, Zhenguo Lin and Jia Xie. ""Dual Agent Distortions in Real Estate Transactions"" Real Estate Economics Vol. 43 Iss. 2 (2015) p. 507 - 536
Available at: http://works.bepress.com/jia_xie/24/