Listing Agent Signals: Does a Picture Paint a Thousand Words?

Utilizing signaling theory, this study examines the effectiveness of images and words to influence homebuyers to move from reading a property listing to deciding to see a property in person. We first compare real estate agents’ perceptions of terms commonly used in MLS records to those of potential homebuyers and find that the signal being sent by agents is generally interpreted as intended. In the second stage, after controlling for demographics, real estate experience, and empathy, we find that using only positive words has a significantly higher impact on likelihood to visit a property than a high-quality picture and the type of home. These results are robust to both a between subjects and within subjects design framework.