Limited Service Brokerage: Positive Broker Intermediation?

Recent research on limited service brokerage finds positive broker intermediation effects evidenced by price increases ranging from 2% to 6%. Time-on-market effects of limited service contracts range from an increase of 20% to a reduction of 14%. One article indicates the results suggesting positive broker intermediation effects are contrary to expectations. After controlling for builder-owned properties and the type of listing contract, we find no evidence of positive broker intermediation associated with limited service listings. Houses listed using an exclusive-right-to-sell and limited service contract experience negative price effects with no impact on time-on-market. A repeat sales sample provides additional evidence supporting either a negative or zero intermediation effect for limited service listings.