What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model

Larceneux, Fabrice; Lefebvre, Thomas; Simon, Arnaud

doi:10.1016/j.jhe.2015.06.002

Cited by 8 publications

(13 citation statements)

References 51 publications

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“…It shows that the use of the internet, in fact, improve the firm financial performance indicating the role of ICT is, in fact, to complement the business process rather than disrupting. This finding is further reinforced through a study by [25] that conclude in today business environment that uses ICT pervasively; real estate professional is still required to act as an intermediary between seller and buyer. The study suggests two key reasons for such findings, first relates to the time-consuming information searchand the assistance provided by the agent onthe considerably time-consuming transaction process.…”

Section: Mohd Lizam Digital Technology and The Real Estate Industrymentioning

confidence: 92%

Digital Technology And The Real Estate Industry

Lizam

2019

Sinergi J. Ilm. Ilmu Manaj

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This paper briefly summarises the extent of the technological impact on the real estate industry, in particular,digital technology. As real estate industry is naturally characterized by several disadvantages in comparison to other industry, understanding the impact ofdigital technology is crucial to the industry on whether this technology will distrust the industry or complement the business process. The emergence of PropTech start-ups has made the industry players to re-evaluate its organisational strategy toalign the business process to a possible threat to the present business model.Prior studies suggest that PropTech comes in there waves in which each waveis characterized by the respective period advancement in digital technology. Several studies also indicate that digital technology may not entirely disrupt the industry but do have a significant potential to act as a complement to the industry in improving its productivity and efficiency.

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Section: Mohd Lizam Digital Technology and The Real Estate Industrymentioning

confidence: 92%

Digital Technology And The Real Estate Industry

Lizam

2019

Sinergi J. Ilm. Ilmu Manaj

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“…are common variables in hedonic models of house prices. Additionally, we include perceived self-expertise -One can say I'm an expert in real estate -and perceived time pressure -I was in a hurry when I bought this apartment -two main psychological features that may influence buyer attitudes (Larceneux et al, 2015). We also measure the external incentives of the purchase, a tax reduction -To what extent would you say your purchase is driven by tax reduction motivation?…”

Section: Control Variablesmentioning

confidence: 99%

The role of services in homebuyers’ attitudes: A field experiment in the French off-plan housing market

Larceneux

Guiot

2019

Urban Studies

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This article investigates the effects of services proposed by private developers on buyers’ psychological attitudes in the decision-making process for off-plan purchases. We propose a new typology of services based on perceived value. We conducted a field experiment with real buyers who purchased an off-plan dwelling in France, and we measured the causal effects on developer reputation of four service intensity indexes that offer ‘visualisation’, ‘customisation’, ‘value enhancement’ and ‘interaction’ services. The results confirm the homebuyer-based typology of services and highlight the mediating roles of two types of attitudes, satisfaction with and trust in the developer, to explain the influence on developer reputation. Services designed to improve the perception of the quality of the dwelling itself (visualisation and customisation benefits) are less effective, and those intended to create a favourable purchase context (value enhancement and interactional benefits) are more influential, emphasising the benevolent role expected from developers.

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“…This is the first study of these phenomena that has been conducted in Norway. However, a recently published French study (Larceneux et al, 2014) also deals with the reasons why consumers decide, or not, to use the services of an estate agent to process a property transaction.…”

Section: Pm 332mentioning

confidence: 99%

Selling a house and the decision to use a real estate broker in Norway

Stamsø¹

2015

Property Management

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Purpose – The purpose of this paper is to examine the widespread of property sellers choosing to sell by themselves or through an estate agent, what characterises them and the reason for their choice. In addition the paper contains comparisons of the gap between sales price and asking price between the sales methods and satisfaction with the sales process. This study is the first study of these phenomena carried out in Norway. Design/methodology/approach – The data used for this study was obtained from a national survey including 1,649 house sellers. A logistic regression analysis is used to analyse the impact of household’s characteristics on the sales method. Findings – The main findings of this study are that 83 per cent of the house sellers used an estate agent through the whole sales process and differences in the choices are related to urbanisation, age and education. The most important reason for preferring a real estate broker is that doing the sale on your own is considered too much work. Conversely, the most important reason for doing the sale on your own is that estate agents are too expensive. Those selling without an estate agent were more satisfied and the gap between sales price and asking price was smaller than for those selling through a real estate broker. Originality/value – Issues concerning competition within the market for estate agents should be central topics for property management. Property sellers selling their property by themselves are an important contribution to increase the competition in the market for estate agents. This issue has not been on the agenda in Norway, or in Europe, in the same way as in the USA. This is probably due to the complexity in the legislation and strict laws within property sales in Central and Southern Europe. However, in Norway, UK and in the Nordic countries, the legal system is not complicated. It is rather the lockout of private individuals from the housing web sites and the fact that the property sellers are not familiar with this kind of transaction that has prevented property sellers to sell their house by themselves. Today Norway is one of few countries with a booming housing market, which also has increased the commission for estate agents. From 2010 private individuals got access to advertise their house on the housing web sites in Norway. These have influenced the focus on alternative sales methods.

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What added value do estate agents offer compared to FSBO transactions? Explanation from a perceived advantages model

Cited by 8 publications

References 51 publications

Digital Technology And The Real Estate Industry

Digital Technology And The Real Estate Industry

The role of services in homebuyers’ attitudes: A field experiment in the French off-plan housing market

Selling a house and the decision to use a real estate broker in Norway

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