Freakonomics Asks: Does your real estate agent have your best interest in mind?5 insights · See all
- The seller–agent contract creates misaligned incentives because the agent's pay converts large gains for the seller into much smaller personal gains, so the agent optimally prefers selling quickly while the seller optimally prefers holding out for more money.
The seller–agent contract creates misaligned incentives because the agent's pay converts large gains for the seller into much smaller personal gains, so the agent optimally prefers selling quickly while the seller optimally prefers holding out for more money.
- Real estate agents sell their own homes for higher prices because they hold out for better offers and keep the listing on the market about 10 days longer, which raises the final sale price.
Real estate agents sell their own homes for higher prices because they hold out for better offers and keep the listing on the market about 10 days longer, which raises the final sale price.
Keep the best of GoldenKey
A free account saves these cards to your Collection, and Korva resurfaces them so you actually remember.