The academic paper was published on 3 September 2026 in the *Journal of European Real Estate Research. It is based on more than 260 private property transactions in Switzerland and examines the extent to which proposed asking prices vary between estate agents and how contractual incentives affect the outcome.
This is a sensitive issue for owners, as the risk of a loss in value does not only arise when the market is in a favourable phase. It can begin as soon as the mandate is granted. If the initial valuation is too low, there is an increased risk of a quick sale below the property’s true potential. If it is too high, the marketing period is prolonged until price reductions become necessary.
The valuation itself acts as a price lever
According to the study, two estate agents can quote asking prices for the very same property that differ by up to 180,000 Swiss francs. This is precisely the crux of the study. The sale proceeds depend not only on location, condition and demand, but also, to a measurable extent, on which intermediary is awarded the mandate. The ZHAW project on this topic ran from April 2024 to December 2024 and has now been completed.
Commissions create false or strong incentives
The effect is particularly pronounced in the case of so-called marginal remuneration. This refers to the additional commission that an estate agent actually earns on a higher-value sale. The price difference between transactions with a marginal commission of more than 10 per cent and those with a lower incentive amounts to 120,461 Swiss francs. Small additional earnings thus weaken the incentive to negotiate for longer on the final price step.
A market with little transparency exacerbates the problem
The study examines a Swiss market in which publicly available transaction data remains scarce. It is precisely this lack of transparency that increases the importance of the choice of estate agent, the valuation model and the remuneration structure. In the project description, the ZHAW therefore identifies three levers for improvement. These include data-driven estate agent selection, more precise price estimates using multiple valuation models, and revised incentive systems.
For sellers, this is not merely an academic side issue, but has very practical implications. Anyone who simply goes for the most convenient offer or the highest initial valuation risks losing a great deal of money. The crucial question is whether the valuation, marketing and commission model are actually all aligned with the same target price.
