Introduction: Residential Real Estate Brokerage
Nelson, Theron R., The Journal of Real Estate Research
This special issue devoted to the various aspects of residential real estate brokerage is the third to be published in the Journal of Real Estate Research following issues published in 1988 (Volume 3, Number 2) and in 1995 (Volume 10, Number 1). In spite of these efforts, residential real estate brokerage remains an understudied area. This issue offers researchers and practicing professionals with either an established or new interest in the topic an unprecedented opportunity to improve their knowledge and understanding of this dynamic area. This is due to not only the wide array of new research presented here, but to the work done by J. D. Benjamin, G. D. Jud and G. S. Sirmans (BJS) in the two pieces that serve as "bookends" for this issue. In the first, What Do We Know About Real Estate Brokerage?, they provide a very comprehensive review and summary of the literature in which they identify and address six questions of concern to the brokerage industry: (1) What is the nature of the market for brokerage services and how does it influence the individual firm? (2) What factors determine broker and agent compensation? (3) How does brokerage participation influence time on the market and price? (4) Is the brokerage market efficient and equitable? (5) Must brokerage firms assume greater liability? And (6) How do brokerage markets vary internationally?
These six questions also serve as a basic framework for current and future research in residential brokerage. Thus we see most of these questions addressed by the articles presented here. After the BJS summary, the next five articles address various aspects of the residential brokerage market. The first two articles, Restructuring Agency Relationships in the Real Estate Brokerage Industry: An Economic Analysis by T. J. Miceli, K. A. Pancak, and C. R Sirmans and An Optimal Incentive System for Real Estate Agents by T. E. Jares, J. E. Larsen and T. S. Zorn address the basic residential real estate market structure. These are followed by three papers that address market efficiency issues: Pricing, Exposure and Residential Listing Strategies by J. D. Benjamin and P. T. Chinloy, Buyer Search Duration Under Different Market Conditions by E. A. Baryla, L. V. Zumpano and H. W. Elder and X-Inefficiencies in the Residential Real Estate Market: A Stochastic Frontier Approach by R. 1. Anderson, D. Lewis and L. V. Zumpano. Taken together, these five articles provide a comprehensive examination of the strengths and weaknesses of the current residential real estate brokerage market.
The next five articles address one of the most important aspects of any market, the assessment of service quality. The first article, Assessment of Real Estate Brokerage Service Quality with a Practicing Professional's Instrument by V. L. Seiler, J. R. Webb, and T. W. Whipple builds on earlier work on providing a consistent framework for service quality assessment in residential brokerage. This is followed by an in-depth review and evaluation of Cognitive Moral Development and Real Estate Practitioners by G. …