22 research outputs found

    The United States: The Privatization of Real Estate Related Public Goods and Services in the United States

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    During the last three decades the privatization or outsourcing of what has traditionally been considered public goods and services has become commonplace. Privatization, however, is not a monolithic concept, and encompasses many different and some newly emerging delivery systems. This study provides an overview of the current status of privatization in the U.S. as we move into the new millennium. Although the survey data discussed in this paper reveals that privatization is continuing to expand, the rate of privatization activity in the U.S. appears to have slowed from the levels reported in earlier studies. While the principal motive for outsourcing remains cost containment, there is increasing concern being expressed about the true cost of privatization. While past experience with outsourcing suggests that government officials are relatively satisfied with the results, the surveys also reveal room for improvement. Insuring the quality and the effectiveness of privatization will probably require greater monitoring and compliance activities on the part of government authorities, which will raise costs. Studies of outsourced public housing projects suggest that operating costs can be reduced without a significant loss in the quality of services. This does not mean, however, that citizens always benefit from privatization or that outsourcing is always the best course of action. This study also suggests that the quality of public service delivery systems can be improved when government agencies compete against the private sector for the right to continue delivering governmental services. In other cases, franchising, vouchers, and subsidies may prove more effective

    Listing Specialization and Residential Real Estate Licensee

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    Earlier research has found that specialization by real estate agents creates economies of scope for real estate firms. So far, however, no research has addressed this issue at the agent level. The question this research seeks to answer is whether specialization in one side of the real estate transaction increases agent income. The most important finding is that specialization has an asymmetric impact on earnings. Specializing in listings positively enhances agent income. In contrast, specialization on the selling side has an adverse affect on agent income. The implications of these findings for the consumer and real estate industry are also examined.

    Tenure Choice, Housing Demand, and Residential Location

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    This paper incorporates location and tenure choice into a simultaneous equation model of housing demand. The estimation results reveal that an important asymmetry may exist between renters and homeowners in terms of their respective housing decisions. The most important finding in this paper is that for homeowners housing quality and locations are jointly determined. Equally important, the decision process for homeowners appears to be sequential in nature, with tenure choice independent of the housing demand and location decisions. However, this does not appear to be the case for renters. It may be that for tenants location and housing quality choices are more limited than for homeowners.

    Measuring the Efficiency of Residential Real Estate Brokerage Firms

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    This article measures overall, allocative, technical, pure technical and scale efficiency levels for a sample of residential real estate brokerage firms using data envelopment analysis, a linear-programming technique. The results suggest that real estate brokerage firms operate inefficiently. Inefficiencies are primarily a function of sub-optimal input allocations and the failure to operate at constant returns to scale rather than from poor input utilization. Regression analysis is employed to determine which firm and/or market characteristics affect efficiency levels. The results show that increasing firm size increases efficiency while choosing to franchise, adding an additional multiple listing service and increasing operating leverage decreases firm performance.

    Minimum Service Requirements, Limited Brokers and Menuing of Services

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    In the past few years, many states have responded to the increasing number of limited service brokers by passing minimum service requirements. Limited service brokers can be viewed as those brokers who are offering their marketing and representative services A La Carte as opposed to the more traditional full-services brokers offering of a Table D\u27hte (one size fits all) for their services. Supporters claim the legislation is necessary to protect consumers who are otherwise hurt by limited service brokers, but critics assert that this legislation is anti-competitive and not necessary. This study provides empirical evidence that sellers using limited service brokers experience a trade-off between a higher selling price and longer marketing spans with accompanying lower probabilities of finding a buyer during a given marketing period