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Darren 🥚 🐣 🕊️ Profile picture
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21 Jul, 8 tweets, 4 min read
1/ Real Estate Agent Remarks: Help or Hype? (Haag, Rutherford, Thomson)

"Negative MLS comments are associated with lower sales prices (hedonic model). However, some positive comments (new paint, good location) are also associated with lower sales prices."
researchgate.net/publication/51… Image
2/ "For each listing on a MLS, a section is provided for agents to furnish additional information that is not included elsewhere in the MLS listing. Examples of these remarks include ‘Well Maintained Home,’ ‘Ready to Sell’ and ‘Foundation Problems.‘
3/ "The sample data consists of 58,386 residential transactions sold & closed through the Metroplex MLS in Tarrant County, TX (Jan 1994 to Dec 1997).

"The dummy variable for MLS area forty-five and for months January through March 1994 are used as the control variables." ImageImageImage
4/ "The largest impacts are from negative comments.

"Some positive, verifiable comments (GOLF, LAKE, UPDATED) are associated with increased selling prices.

"Other positive, verifiable comments (PAINT, NEWCARP, ROOFWORK) are associated with marginally lower selling prices. ImageImageImageImage
5/ "Such comments may be more hype than help.

"Motivated sellers & properties stated to be a good buy show decreases in selling price. Good condition is associated with an increase in sales price. Good location shows a lower sales price, suggesting subjective comment to be hype.
6/ "Comments that indicate updating, those of new paint, new carpet and roof work, show a decrease rather than the conjectured increase in selling price.

"Sellers may be as well off to provide an allowance for these items or lower the price rather than replacing them."
7/ Related reading:

Wealthy Renter


Thread on real estate


Expertise Value Added in the Real Estate Market


Cost vs. Value report "cost recouped" estimates
8/ Market Distortions When Agents are Better Informed: The Value of Information in Real Estate Transactions

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Darren 🥚 🐣 🕊️ Profile picture
23 Jul
1/ Market Distortions When Agents are Better Informed: The Value of Information in Real Estate Transactions (Levitt, Syverson)

"Agent-owned homes sell for 3.7% more than other houses & stay on market longer, even after controlling for characteristics."

papers.ssrn.com/sol3/papers.cf… Image
2/ "As a result of an information advantage relative to clients, expert agents may mislead clients by exaggerating the costs or difficulty of a solution, providing unneeded services, or otherwise distorting information to maximize the expert’s own payoff.
3/ "A listing agent has strong incentives to sell a house quickly, even at a lower price, and thus may encourage clients to accept sub-optimally low offers too quickly.

"Typically, the agent receives only 1.5% of each marginal dollar of the price for which the house sells.
Read 11 tweets
Darren 🥚 🐣 🕊️ Profile picture
22 Jul
1/ Do Real Estate Brokers Add Value When Listing Services are Unbundled? (Bernheim, Meer)

"In an open-access listing service used by all sellers, when listings are not tied to brokers, a seller's use of a broker reduces final sale price by 5.9-7.7%."

papers.ssrn.com/sol3/papers.cf… Image
2/ "Our market has a single open-access listing service used by essentially all sellers, regardless of whether they employ brokers. The market consists of roughly 800 houses and condominiums located in a collection of largely contiguous neighborhoods on Stanford University land. ImageImageImage
3/ "Because ownership is limited to Stanford faculty and some senior staff, the MLS plays no role. (The listing service is free.) Brokers charge standard commissions (historically 5-6%).

"This allows us to identify effects of brokerage services when separated from MLS listings."
Read 14 tweets
Darren 🥚 🐣 🕊️ Profile picture
22 Jul
1/ Relative Performance of Real Estate Marketing Platforms: Mls Versus Fsbomadison.Com (Hendel, Nevo, Ortalo-Magné)

"We do not find that listing on the MLS helps sellers obtain a higher sale price, but it does shorten the time it takes to sell."

papers.ssrn.com/sol3/papers.cf… Image
2/ "FSBOMadison.com actively extinguishes any listing from its website that ends up on the MLS.

"Real estate agents are occasionally involved in FSBO sales when they represent the buyer and one of the parties agrees to pay a buying agent commission, typically 3%." Image
3/ Table 1: "A row represents where a property was initially listed. The columns represent the eventual outcome (where/how it sold).

"Out of properties that sell, 95% sell through the initial listing platform. The remaining 5% are almost completely switches from FSBO to MLS." ImageImageImage
Read 21 tweets
Darren 🥚 🐣 🕊️ Profile picture
21 Jul
1/ Why We Sleep (Matthew Walker)

"There does not seem to be one major organ within the body or process within the brain that isn’t optimally enhanced by sleep (and detrimentally impaired when we don’t get enough)." (p. 6)

amazon.com/Why-We-Sleep-U… Image
2/ "The physical and mental impairments caused by one night of bad sleep dwarf those caused by an equivalent absence of food or exercise.

"Routinely sleeping less than six hours a night weakens your immune system, substantially increasing your risk of certain forms of cancer.
3/ "It is be linked to your risk of developing Alzheimer’s.

"Inadequate sleep—even moderate reductions for just one week—disrupts blood sugar levels so profoundly that you would be classified as pre-diabetic.
Read 70 tweets
Darren 🥚 🐣 🕊️ Profile picture
21 Jul
1/ Incentives and Performance in Real Estate Brokerage (Munneke, Yavas)

"We predict that the selling price & time it takes to sell through a full-commission (RE/MAX) agent are the same as for a traditional agent. This is supported by empirical results."

link.springer.com/article/10.102…
2/ "Full-commission brokerage firms allow agents to retain 100% of commission revenue (minus a 5% franchise fee). In exchange, agents pay a fixed amount each month for desk costs.

"They should therefore have incentives to expend a greater effort than agents of traditional firms.
3/ "Does a full-commission agent generate greater commission revenue by selling a listing faster and at a higher price? Or do these agents not generate a faster selling time or a higher price, but simply spend additional hours that lead to a greater number of listings or sales?
Read 10 tweets
Darren 🥚 🐣 🕊️ Profile picture
20 Jul
1/ Impact of Agent Experience on the Real Estate Transaction (Waller, Jubran)

"Properties listed by veteran agents sell for 2% more than those of less experienced counterparts, do so 32% faster, and with greater probability of a successful transaction."

papers.ssrn.com/sol3/papers.cf…
2/ "Work schedule flexibility and the potential for high income attracts opportunists who may not have made a solid commitment to real estate as a career.

"We define agents who acquired licenses and did not renew at two years (held for >10 years) as rookies (veterans)."
3/ "Properties listed by inexperienced (veteran) agents sell for 10% less (1.8% more) and endure longer marketing durations (sell 32% faster) than those listed by other agents."
Read 7 tweets

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