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Unpublished Paper
Do Specialized Agents Help Home Sellers More Than Other Agents Do?
(2015)
  • Ken Johnson, Florida Atlantic University
  • Zhenguo Lin, Florida International University
  • Jia Xie, Bank of Canada
Disciplines
Publication Date
2015
Comments
Nowadays, real estate agents often focus on a certain segment of the housing market, in order to improve their knowledge, network and therefore competitiveness in that market segment. For instance, some agents specialize in bank-owned properties, some specialize in luxury properties, some specialize in a certain neighborhood, and some others specialize in listing instead of buying. A key question is whether home sellers actually benefit from the improved knowledge and network of specialized agents. By using house sales data from Indiana, this co-authored paper provides an empirical answer to this question by studying whether specialized agents sell faster or sell for higher prices than non-specialized agents do. We find that specialized agents can not sell for higher prices, but can sell faster than other agents in their specialized markets. This result suggests that specialized agents may have a broader network than other agents do in their specialized markets, so that they can match potential buyers and sellers faster. Specialization, however, does not give them any bargaining advantage over the other agents, and therefore they are not able to sell at better prices for their clients.
Citation Information
Ken Johnson, Zhenguo Lin and Jia Xie. "Do Specialized Agents Help Home Sellers More Than Other Agents Do?" (2015)
Available at: http://works.bepress.com/jia_xie/28/