THE EFFECTS OF BROKERAGE AND COMMISSION AGENTS ON REAL ESTATE MARKET PRICE DETERMINATION

Abstract

Brokers and commission agents play crucial roles in facilitating transactions, offering market insights, and negotiating on behalf of buyers and sellers in the real estate sector. This study aims to explore how these professionals impact real estate market pricing in Addis Ababa using a mixed research approach that is descriptive and explanatory. Researchers utilized both primary and secondary data sources, with a sample size of 385 determined through calculation due to an unknown population size. Customers were selected using a non-probability sampling method for convenience, considering the lack of an exact customer list. Quantitative data analysis techniques, including percentages, mean, standard deviation, and correlation, were employed. The analysis revealed that Market Regulations did not have a significant impact on real estate prices, suggesting that other regulatory factors may be at play. Conversely, the study found a significant positive relationship between Commission fees and real estate prices, indicating that higher fees correlate with increased property prices, potentially influencing transaction outcomes. Recommendations from the analysis included the importance of monitoring competitive factors, such as Breakage competition, to stay informed about market dynamics that could affect pricing decisions. Additionally, responding effectively to changes in Market Demand and Supply was highlighted as crucial for making informed pricing decisions, emphasizing the need to adjust strategies based on market trends to leverage opportunities and manage risks effectively.