Intra-Firm Real Estate Brokerage Compensation Choices and Agent Performance

Posted: 25 Jan 2008

See all articles by Ken H. Johnson

Ken H. Johnson

Florida Atlantic University - Finance

Leonard V. Zumpano

University of Alabama - Department of Economics, Finance and Legal Studies

Randy Anderson

Prudential Real Estate Investors

Date Written: December 8, 2008

Abstract

This paper seeks to empirically determine whether more skilled and productive real estate salespeople, identified as full-payout or 100% commission agents, have a discernable, systematic effect on property selling price and its marketing time. Two types of agents, 100%ers and split commission agents, are identified and controlled for in hedonic pricing and duration models in order to examine the relationship between incentives and agent performance. The results reveal that 100% agents sell their listed properties faster and at premiums. This paper may also help explain the contradictory findings of earlier research.

Keywords: salespeople, sales people, agents

Suggested Citation

Johnson, Ken H. and Zumpano, Leonard Vincent and Anderson, Randy, Intra-Firm Real Estate Brokerage Compensation Choices and Agent Performance (December 8, 2008). Journal of Real Estate Research (JRER), Vol. 30, No. 4, 2008, Available at SSRN: https://ssrn.com/abstract=1086674

Ken H. Johnson (Contact Author)

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

Leonard Vincent Zumpano

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
205-348-8988 (Phone)
205-348-0590 (Fax)

Randy Anderson

Prudential Real Estate Investors ( email )

8 Campus Drive
Parsippany, NJ 07054
United States

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