What added value do Estate Agents offer compared to FSBO transaction? Explanation from a perceived advantages model

Fabrice Larceneux (1) , Thomas Lefebvre (1) , Arnaud Simon (1)

1 DRM - Dauphine Recherches en Management

This paper aims at explaining the determinants of using an estate agent vs. conducting a private sale on the French housing market. From a survey that collected 4,142 responses relating to effective completed transactions, the results show that the decision of whether to use an estate agent is not explained by the physical or spatial features of the property or socio-demographic variables. But by buyers’ and sellers’ heterogeneous perceptions of whether it is worthwhile to use estate agents, of how far they feel themselves having market expertise, and their wish to complete quickly. Five perceived transaction costs explain why buyers and sellers use brokerage intermediation, in a consumer’s standpoint.

Mots clés: FBSO; real estate housing; time pressure; perceived advantages; market expertise; transaction cost; residential property market; intermediation

Domaines: Gestion et management

Fabrice Larceneux, Thomas Lefebvre, Arnaud Simon. What added value do Estate Agents offer compared to FSBO transaction? Explanation from a perceived advantages model. Journal of Housing Economics, 2015, 29, ⟨10.1016/j.jhe.2015.06.002⟩. ⟨hal-01635048⟩