Pieter Gautier, Arjen Siegmann, Aico van Vuuren, 27 February 2018

In 2005, flat-fee real estate brokers entered the Dutch housing market, charging a substantially lower up-front fee than the average traditional brokers’ fee based on sale price. This column uses house sale data to demonstrate that flat-fee agents sell properties faster, and at an average price that is 2.7% higher than traditional agents. This suggests that the profits of traditional brokers are at least partly driven by rents, rather than performance.

Events

CEPR Policy Research