Agents’ Performance Review Framework
Real estate brokerage is an indispensable part of the real estate market. It helps smoothen the matching processes between sellers and buyers and landlords and tenants and reduce the search costs in real estate transactions. In most countries, there is no significant barrier to entry into the real estate brokerage industry. Individuals with at least a recognized degree qualification can apply to practice as real estate agents/brokers.
With the growth of electronic listing portals and search technologies in real estate markets, matching of sellers and buyers could be significantly improved both in terms of time to market, and also cost of information. Real estate agents’ intermediary roles could face serious threats and possible disruptions, if real estate owners could use the electronic portals to sell real estate by themselves.
Objectives of the Study
This study proposes to examine the information asymmetries in the context of real estate agency markets in Singapore. The objectives of the study are organized into two stages:
Stage-1 Study:
- To empirically test the question: “Does agents’ experience matter?” The study aims to test if agents’ experience and own skill/ability in closing deals are valued more by consumers (house buyes/sellers) than reputation of his/her affiliated firm?
- To evaluate if social-ethnic network matters in the selection of agents? Do buyers/sellers favour the agents of the same ethnic background (race) when choosing agents to represent them in housing transactions?
Stage-2 Study:
- To develop a web-based APP on “Know your agents”, and use the platform to conduct a randomized controlled trial (RCT) on the effectiveness information feedback on improve agents’ performance, and/or how the information could help buyers/sellers to better evaluate and select suitable agents.