The study shows considerable homogeneity in price outcomes of real estate agents; flat-fee agents often achieved 1%-4% higher sale prices than traditional commission-based agents.
Lily Shen emphasized that the objective was not to diminish the value real estate agents bring, but to reveal the distribution of price effects from different agent types.
The researchers analyzed a dataset of 2.3 million home sales, finding that while some agents occasionally perform better, most exhibit similar price outcomes.
Flat-fee brokers, akin to for-sale-by-owner transactions, were observed to yield better outcomes in terms of home sale prices, challenging conventional real estate commission models.
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