The Impact of Real Estate Agents on House Prices Near Environmental Disamenities

Posted: 14 Apr 2010

See all articles by Andres Jauregui

Andres Jauregui

Columbus State University - D. Abbott Turner College of Business

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology

Date Written: April 13, 2010

Abstract

The purpose of this paper is to determine the impact of real estate agents on the price of houses that are located close to an environmental disamenity. Our main hypothesis is that real estate agents obtain higher prices than those theoretically expected when the houses are located closer to an environmental disamenity. We attribute this result to agents’ ability to effectively match potential buyers to house sellers as well as their influence on bargaining power. Estimates from a sample selection corrected hedonic model suggest that the percentage increase in the house price obtained by a real estate agent is greater than the commission rate.

Keywords: hedonic price model, prices, real estate agent, environmental economics

JEL Classification: R00

Suggested Citation

Jauregui, Andres and Hite, Diane, The Impact of Real Estate Agents on House Prices Near Environmental Disamenities (April 13, 2010). Housing Policy Debate, Vol. 20, No. 2, 279-300, 2010, Available at SSRN: https://ssrn.com/abstract=1589059

Andres Jauregui (Contact Author)

Columbus State University - D. Abbott Turner College of Business ( email )

Columbus, GA 31907-5645
United States

Diane Hite

Auburn University - Department of Agricultural Economics and Rural Sociology ( email )

Comer Hall
Auburn, AL 36849
United States
334-844-5655 (Phone)
334-844-5639 (Fax)

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