The study by Thomas Richter and Ruben Seiberlich is titled "Real Estate Agents, Incentives, and Transaction Prices: Evidence from Switzerland."
A 120,000 franc difference for the same property
For the same property, agent estimates differ by an average of over 180,000 francs, with a median difference of 120,000.
This evaluation involved only the three most suitable, pre-selected agents.
The actual sale price was, on average, 14.4 percent higher than the lowest estimate. Relying on that lowest estimate means leaving that difference on the table.
The choice of agent drives the price
According to the study, the behavior of the agents is responsible for this.
Where there is little local competition, the differences in valuations are greater. Pure valuation uncertainty hardly explains them.
Incentives pay off
Contracts with stronger performance-based incentives were associated with higher sale prices, particularly when the commission share exceeded ten percent.
Aligned with Bestag
The three points examined correspond to the Bestag approach:
- Select agents based on data
- Determine the value using multiple models
- Structure the contract to target a higher price
The study validates each of these points.
The authors emphasize that the results are correlative. They support the approach without providing definitive proof of causality.
*Source: Richter, T. & Seiberlich, R.: "Real E...