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Publication year
The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com
Resource type
Authors/contributors
- Hendel, Igal (Author)
- Nevo, Aviv (Author)
- Ortalo-Magné, François (Author)
Title
The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com
Abstract
We compare house sales on a For-Sale-By-Owner (FSBO) platform to MultipleListing Service (MLS) sales and find that FSBO precommission prices are nolower, but that FSBO is less effective in terms of time to sell and probability ofa sale. We do not find direct evidence of the importance of network size as areason for the lower effectiveness of FSBO. We do find evidence of endogenousplatform differentiation: patient sellers use FSBO while patient buyers transactmore often on the MLS (where they avoid patient sellers). We discuss theimplications for platform competition, two-sided markets, and welfare. (JELL85, M31, R31)
Publication
American Economic Review
Volume
99
Issue
5
Pages
1878-98
Date
2009-12
Citation
Hendel, I., Nevo, A., & Ortalo-Magné, F. (2009). The Relative Performance of Real Estate Marketing Platforms: MLS versus FSBOMadison.com. American Economic Review, 99, 1878–1898.
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