Seller versus Broker: Timing of Promotion

Abstract

Sellers and brokers may differ in preferred timing of costly promotion. Sellers with holding costs are anxious to sell. Sellers with showing costs want a slower approach. We find a standard listing contract where the broker chooses promotion timing can be efficient if sellers have no significant holding or showing costs. We then delineate the efficient listing contract provisions for duration and fee structure for sellers who have holding and/or showing costs.