Transaction Costs in Trading: Why (not to) hire a Realtor? A Conceptual Framework

Abstract

The discussion and the research of the topic regarding the advantages of the broker and whether it is more beneficial to hire an agent or not has been a major topic for a long time. In this essay, an overview of monetary and non-monetary components of corresponding transaction costs is given. Thereby, not only the commission rate itself but also the factors taxes, selling price, selling time, social costs, administration/organization of a sale, expertise, and networking skills are taken into consideration to show whether the engagement of a broker is beneficial.