Wednesday, March 19, 2014

Better Looking Real Estate Agents Make More Money

In Real Estate, Looks Can Sell: Attractive agents both list and sell homes for more money than average-looking agents, say researchers studying the effect of beauty on sales. From the WSJ, 5-31-2013. By Sanette Tanaka. Excerpts:
"When selling real estate, beauty pays off, says Sean Salter, associate professor of finance at Middle Tennessee State University and co-author of a study on how an agent's looks affect property sales. Attractive real-estate agents list homes for $20,275 more and sell for $15,622 more than average-looking agents, researchers found.

"When you see a more attractive person, you think 'Superman.' They're going to be good at whatever they do. You think they're attractive, they're smarter, they're funnier—they're probably a better real-estate agent," Prof. Salter says."

"The findings: Every one-point increase in a listing agent's attractiveness score added $10,989, on average, to the home's list price. Every one-point increase in a selling agent's score added $8,467 to the home's sale price.

"All else being equal, we give attractive people a little bump," Prof. Salter says."

"Over time, though, the price differences evened out. Although they made more money per transaction, attractive agents carried 17 fewer listings and made 11 fewer sales, on average, during the seven-year period. It also takes attractive agents longer to sell a property. That means that agents who are considered beautiful "actually are using their beauty to supplement other productive characteristics," Prof. Salter says."


Anonymous said...

So, technically, you would want an ugly agent helping you buy your home. That should save you $8,000 or more off the final sales price according to this logic.

Cyril Morong said...

I think that is what it means. Thanks for dropping by and commenting