A recent study in Applied Financial Economics explores the relationship between how beautiful an agent is and how quickly he/she sells a property and for what price. Thankfully, the econ blog Big Think broke down the hellishly scholastic-sounding "Broker beauty and boon: a study of physical attractiveness and its effect on real estate brokers’ income and productivity” into comprehensible language, and turns out the research contains a few interesting quasi-facts. Of course, the points below are either believable or guffaw-able, depending on, say, personal experience, price point, and geographic market. Have an opinion of your own? Leave it in the comments. Here goes:
1: Male agents (representing both buyer and seller) tend to rep houses with lower prices.
2: Beautiful agents tend to yield higher closing prices.
3: Good news for those trying to sell your home: "the effect on house prices of having an attractive listing agent is about twice as large as that of an attractive selling agent."
4: Just because your selling agent is attractive doesn't mean that your property will sell faster; in fact, it's quite the opposite. You might learn to be patient and soak up all that extra time spent in the presence of hotness.
5: In terms of commissions, pretty agents tend to sell at higher price points but sell fewer properties than their, ah, uglier colleagues.
Racial bonus round: "The study also finds that non-white listing agents are associated with lower final prices and both non-white listing agents and selling agents are associated with longer times on the market."
· Unattractive Real Estate Agents Achieve Quicker Sales [Big Think via Jezebel]
The relationship between physical attractiveness and real estate performance is a fascinating yet contentious topic. As an enthusiast in this field, I've delved into various studies and empirical data that shed light on these intriguing dynamics.
The study mentioned, "Broker beauty and boon," indeed offers insights into how the physical appearance of real estate agents impacts property sales. Here's a breakdown of the concepts highlighted in the article:
-
Male agents and property prices: The research suggests that male agents, representing both buyers and sellers, tend to handle properties with lower price points. This observation could be influenced by various factors such as clientele, market segments, or negotiation styles.
-
Effect of attractiveness on closing prices: The study indicates that more attractive agents often lead to higher closing prices. This correlation could stem from the perceived credibility, trust, and persuasive ability associated with attractiveness, influencing buyer decisions and negotiation outcomes.
-
Impact of attractive listing agents: The research highlights that having an attractive listing agent can significantly impact house prices, potentially doubling the effect compared to an attractive selling agent. This finding underscores the significance of first impressions and the role of listing agents in shaping buyer perceptions.
-
Speed of sales and attractiveness: Surprisingly, the study suggests that having an attractive selling agent might not necessarily accelerate property sales. Contrary to popular belief, properties represented by attractive agents might take longer to sell. This finding challenges the assumption that attractiveness directly translates to quicker sales.
-
Commission and attractiveness: It's noted that attractive agents often handle higher-priced properties but might sell fewer properties overall compared to their less attractive counterparts. This could indicate a trade-off between handling fewer high-value listings versus more frequent transactions at lower price points.
Racial dynamics: Additionally, the study touches on racial aspects, suggesting that non-white agents—both listing and selling—might be associated with lower final prices and longer durations on the market. This brings forth the complex interplay between attractiveness, race, buyer biases, and market dynamics.
These observations are nuanced and context-dependent, varying across markets, clientele preferences, and individual experiences. While the study provides valuable insights, it's crucial to consider the multifaceted nature of real estate transactions and the diverse factors influencing buyer-seller interactions.
