Title

Minimum Service Requirements, Limited Brokers and Menuing of Services

Document Type

Article

Publication Date

8-1-2012

Department

Finance, Real Estate, and Business Law

Abstract

In the past few years, many states have responded to the increasing number of limited service brokers by passing minimum service requirements. Limited service brokers can be viewed as those brokers who are offering their marketing and representative services A La Carte as opposed to the more traditional full-services brokers offering of a Table D'hte (one size fits all) for their services. Supporters claim the legislation is necessary to protect consumers who are otherwise hurt by limited service brokers, but critics assert that this legislation is anti-competitive and not necessary. This study provides empirical evidence that sellers using limited service brokers experience a trade-off between a higher selling price and longer marketing spans with accompanying lower probabilities of finding a buyer during a given marketing period.

Publication Title

Journal of Real Estate Finance and Economics

Volume

45

Issue

2

First Page

471

Last Page

490