The Effects of Time Constraints on Broker Behavior in China’s Resale Housing Market: Theory and Evidence

Abstract

This study examines the effects of time pressure on residential real estate broker behavior. Consistent with our intuition, we find that when under a binding time constraint, brokers do transact the property more quickly, but do not work as hard and ultimately recommend less optimal homes. Interestingly, brokers earn the same commission when operating in either a low or high time pressure environment. When the characteristics of the broker are considered, we find that experienced brokers are significantly more effective at matching buyers and sellers under time constrained conditions.
 

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Keywords

China, Search Duration, Time Constraints, Residential Real Estate

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